This Norton Rose Fulbright blog reviews the vital role that effective “change management” plays in integrating an acquired business. Here’s an excerpt from the intro:
Successfully directing the integration of two businesses following the closing of an M&A transaction is vital to realizing the value of a merger. The process by which post-closing change within a business is overseen – often referred to as “change management” – plays a key role in determining whether or not the integration process is smooth and the objectives of the merged entity are achieved.
According to a report by Bain & Company, people, culture, change management and communication have been identified by business leaders as some of the main causes of poor integration following an M&A transaction. Although executives often intend to devote a significant amount of attention to properly managing change in the aftermath of a merger, these aspirations are easily overshadowed by the resources and focus required to meet the day to day needs of the business.
The blog discusses specific actions that should be taken to address change management issues in the integration process.
– John Jenkins