FACT: For every merger that turns into a success, three others are disappointments or failures
- Frequently this is NOT because the mergers have been ill-conceived, but because they were poorly executed
- Consolidation success depends on a clear vision of what the new entity is supposed to achieve
- The business objectives of the merger are frequently either ill-communicated, or not communicated at all
- Action plans need implementing with speed
- Cultural differences need tremendous attention
- Momentum needs to be built early in order to hit the ground running
Question: But what are the main challenges?
- You MUST have a superb plan backed-up by a firm commitment from all interested parties
- You MUST have effective and diligent management in place
The penalties for failing can be quite staggering..