If you are purchasing an existing business to add into your own, you are taking a step that involves a lot of terrific potential but also a lot of risk. In truth, a considerable portion of company mergers fail.
But there is a lot to you can do to tilt those odds more in your favor. They are all part of the business alchemy known as Acquisition Integration. Let’s take a look at a couple of the key elements of integration success to familiarize and equip you.
The single-most important step that you can take to make business acquisition succeed is this:
Acknowledge the fact that merging two companies is not the same as running two companies… or even running one big company.
If you accept that premise, you will approach the integration process with more awareness and more thoroughness and you will be much more likely to succeed. Period!
Why is that so? 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 your company, more of your staff, and more of your outside stakeholders than a merger. None. So the odds are that something somewhere will go wrong if you don’t play the integration game mindfully.
Here are ten useful tidbits to get you started on the road to properly integrating your next acquisition:
It is entirely possible to tilt the bad odds of acquisition history in your favor with effective integration. It will cost money and time but is a proven tipping point in the value creation art of doing deals.
Douglas Yorke is Managing Partner of Rumson Acquisitions. He created Rumson Acquisitions to help smaller and less frequent acquirers realize the value of their corporate development investments by providing acquisition preparedness, integration expertise and ongoing integration management services for deals ranging in size from $3-30 million. You may follow Mr. Yorke’s commentary on acquisition integration at http://mergerverger.com.
A Neumann & Associates, LLC is a professional merger & acquisition and business brokerage firm with 30 years of experience in New Jersey, New York, Pennsylvania, Delaware, Maryland, and Virginia that assists business owners and investors with the business transfer process in a completely confidential manner. The company covers the entire Northeast US market, has representations from NY state to VA state, and has access to a 50 office national network of qualified investors and sellers. For more information, please contact A Neumann & Associates at 732-872-6777.