Conventional wisdom holds that merger integration should be conducted slowly and carefully. Without question, great care must be taken to combine and harmonize two entities. A detailed plan is essential. But new evidence suggests that rather than easing into the integration process, the time frame must be compressed.
The first 100 days after the deal is announced can determine whether or not you achieve the desired results of the merger. It can make the difference between the very success or failure of the enterprise.
Corporate mergers and acquisitions are a business reality and represent a viable method of enhancing competitiveness. Merging can result in an instant increase in market share. It can make an organization more efficient, enhance product quality and maximize profitability.
Unfortunately, the benefits sought by management often fail to materialize. According to The Journal of Business Strategy, one third to one-half of all completed mergers fail to meet expectations. If the deal looks good enough on paper, why doesn’t it translate to reality? The answer can be found in the handling of post-merger integration.