Halted Integrations
Unable to finish the projects to
deliver Deal Value
A halted integration isn't over. It's paused, and can be restarted
To get value out of an acquisition, the acquiring and acquired businesses are integrated together to some degree. However, the integration is considered incomplete if:
- The project tasks were not finished
- The businesses are unable to successfully work together as intended
There is no definitive way to declare an integration as troubled or incomplete. However, these are some of the typical symptoms. These are distinct from the indicators of a stalled integration.
Commonplace Areas of Improvement
Despite there being many business-specific reasons for incomplete acquisition integrations, there are commonplace areas that we can look at for solutions. One major challenge is the clash of cultures, either company-wide differences, teams that behave differently, or geographical differences. The merging entities will have distinct identities, values, and ways of working that must be respected.
Good communication is the solution to cultural difference understanding, but poor communication leads to delays. Transparency and clear communication with stakeholders, such as employees, customers, suppliers, channel partners, and investors, are essential. A lack of communication breeds uncertainty, rumors, mis-interpretation of constructive work, and distrust. Ensuring that all parties are informed and engaged can help mitigate these risks and foster a smoother transition.
Larger integrations often include the deliver of synergies as a measure of success - in some cases failure to deliver these can cause irreparable damage to the acquirer and acquired businesses. Delivering synergies while sustaining business as usual needs meticulous planning and execution; otherwise, they can lead to missed opportunities and label the integration a failure.
Sometimes, there is an inappropriate focus on speed of integration, without providing the resources, cross-functional coordination, and communication that can deliver success. Attempting to integrate too much too quickly without capability creates chaos, resistance, and ultimately, an inability to complete. Management teams must be prepared to deliver, realistic in their scheduling, and able to push back on leadership's requests, if they are unreasonable.
What Grade is your Integration?
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Is your integration stalled, not incomplete?
