A Neumann & Associates, LLC Discusses the Elements of Integration Success

A Neumann & Associates discusses the steps involved when purchasing an existing business to add, discussing how it involves a lot of terrific potential but also a lot of risk. In truth, they believe a considerable portion of company mergers fail. In part of this discussion A Neumann & Associates explain what to do to tilt those odds more in one’s favor.  They are all part of the business alchemy known as Acquisition Integration. A Neumann & Associates discuss a couple of the key elements of integration success to familiarize and equip when one is ready to purchase an existing business.

The single-most important step to take to make an acquisition succeed is:

Acknowledge the fact that merging two companies is not the same as running two companies… or even running one big company.

If one accepts that premise, they will approach the integration process with more awareness and more thoroughness and will be much more likely to succeed.  That is because running a company is largely about maintaining and optimizing existing systems.  Merging two companies is about changing them.

There is no project that will affect more corners of a company, more of staff, and more of outside stakeholders than a merger.  The odds are that something somewhere will go wrong if the integration game is played mindfully.

Here are ten useful tidbits to get started on the road to properly integrating your next acquisition:

  • Never ever lose sight of the strategic rationale for the acquisition.  “Why are we doing this deal?” Tattoo that question on the back of your right hand. 
  • Start the integration at the strategic planning phase of your deal process and keep it going much longer than would seem necessary.  It affects everything and its stumbling blocks can be very subtle.
  • Appoint a special team to manage the integration process. Treat them as the biggest value creation opportunity that your company has.  Put one person in charge who, if at all possible, has no other “day job.”
  • Err heavily on the side of over-communicating.  The time to guard secrets is not when your company’s work environment is at its most turbulent and uncertain.
  • Go fast.  Make decisions as quickly as possible.  Think well ahead and wait only for good information, not perfect.
  • Speed and communication are particularly important when dealing with people, i.e., your staff, your customers, your investors, your suppliers.  People worry, assets don’t.
  • Financial and legal matters represent only the tiniest fraction of effective due diligence.  “How is this actually going to work?”  Tattoo that question on the back of your left hand.
  • A short due diligence checklist that is based firmly on strategic rationale and achieving operational excellence AND is prioritized is way better than a gigantic list of random pretty-good things to do.
  • Target a few key metrics to measure your progress against your strategic objectives and share that progress regularly around the combined companies.
  • Identify a couple of “quick wins” that can be used to reinforce to all your stakeholders the intent and the benefits of the acquisition.

It is entirely possible tilt the bad odds of acquisition history in one’s favor with effective integration.  It will cost money and time but is a proven tipping point in the value creation art of doing deals.

To learn more please visit http://www.neumannassociates.com/

About A Neumann & Associates

A Neumann & Associates, LLC is a professional mergers & acquisitions and business broker firm in New Jersey having assisted business owners and buyers in the business valuation and business transfer process through its affiliation for the past 30 years. With an A+ Better Business Bureau Rating for 10+ years in a row, and over 5,000 valuations performed through its affiliation, the company maintains its corporate offices in Atlantic Highlands, approximately 45 minutes south of New York City and has trusted professionals with a deep knowledge base in multiple field offices in the New York, Connecticut, New Jersey, Pennsylvania, Delaware, Maryland, DC and Virginia region.