MERGERS & ACQUISITIONS INTEGRATION  |

Mergers & Acquisitions Integration – from mechanical processes and culture clashes to smooth integration.

Mergers and acquisitions are vital to the growth of many businesses, yet roughly half of all Mergers & Acquisitions fail to create shareholder value. Why do so many deals produce such disappointing results?

One major reason is that companies tend to treat post-merger integration (PMI) as a mechanical process that occurs after the deal is closed. Yet each PMI will have its own speed, style, focus, and rhythm. The PMI process must be tailored to account for those differences. As an example, a merger driven by cost synergies will require a very different strategy than one in which achieving revenue synergies is the main goal.

Culture clashes between companies are another major reason which causes significant integration problems. Different thinking, acting and reacting styles in the Management Teams may be encountered during post-merger integrations. This may lead to resistance to change, divided loyalties, blurred roles and responsibilities, unclear reporting relationships, communication tangles, job insecurity, unusual employee turnover, and infighting.

CULTURE & MANAGEMENT ASSESSMENT  |  PERFORMING THE GROUND WORK FOR SMOOTH INTEGRATION  |  CREATING THE CULTURE FOR SUCCESS

RIVIONT supports M&A integration processes with our Culture Transformation and Management Due Diligence services.

RIVIONT conducts a cultural assessment of prospective candidates and facilitates a culture work out session between both sides.

RIVIONT appraises a company’s senior management—evaluating each individual’s effectiveness in contributing to the organization’s strategic objectives. We also address the team’s dynamics and highlight the risks.

Like to know more how RIVIONT can support you with Mergers & Acquisition Integration, please contact Richard A. Vincent.