Mergers & Acquisitions

Mergers and Acquisitions – The 4 Greatest Risk factors 바카 랏 for Leaders

바카 랏

바카 랏 it comes to mergers and acquisitions, there are critical factors to consider. The best leaders and strategic thinkers are astute enough to recognize the primary risks associated with growth and change, as well as the key questions to ask as they lead their organizations and teams toward success.

바카 랏 stands out from my experiences has been underestimating the scale, scope and change implications of the integration and the level of assimilation required between the affected departments, divisions, subsidiaries and leadership teams when taking on a merger or an acquisition.

This is particularly important 바카 랏 the merger and acquisition (M&A) is between companies focused on different sectors and/or geographical regions, but these issues are important with all M&As.

Clearly, acquiring or merging with another business involves risks, but these risks are exacerbated 바카 랏 those leading it and making decisions are not intentionally focused on the full internal and external environments and 바카 랏 they fail to have contingency plans to address unforeseen business liabilities and challenges.  Some primary challenges and risk areas that we have observed are the result of:

1. Poor or inadequate communications

  • 바카 랏/was the catalyst for the merger/acquisition?  Now compare that answer to what those who will be most impacted believe the catalyst to be.  Any discrepancies or conflict?
  • 바카 랏 your communication strategy, and who will lead it?
  • How do/will 바카 랏 know 바카 랏 are being heard, and who is listening?

2. A lack of transparency and inadequately preparing for the inclusion and retention of core competencies and staffing

  • How transparent do 바카 랏 really want to be?  Differing stakeholder groups will need varying details and information.  What is your plan?
  • Are there any changes/modifications to the organizational mission?
  • What core competencies will 바카 랏 need on board to achieve strategic outcomes?
  • Do the people 바카 랏 are keeping/adding/removing possess the core competencies 바카 랏 will need?
  • What metrics do 바카 랏 have in place to assess/determine when core competencies are not covered?

3. Not incorporating and building on the brand and marketing and sales efforts

  • 바카 랏 are the distinct aspects of each of the separate organizational brands that must be maintained or advanced?
  • Have 바카 랏 assessed the strengths and weaknesses of the marketing and sales strategies and determined which tactics 바카 랏 will apply in merging / separating these?
  • Who is better—can 바카 랏 be as objective as 바카 랏 need to when completing overlapping or eliminating one or the other marketing strategies?

4. Having two distinct cultures and service standards and not taking time to balance and merge the two (keeping the best of both and losing the worst of both)

  • What is the culture (personality, attitude, character) of each of the affected companies/organizations and how do 바카 랏 know this to be the case?
  • What are the standards for service within each organization?  Do they matter, how were they established, and 바카 랏 necessary to merge these?

바카 랏 Is Responsible for the Results and Should Be Strategic About It.

바카 랏 we neglect to properly consider and/or manage these issues appropriately, as well as others, inefficiencies, ineffectiveness and low productivity reign, and this threatens accomplishing the original intent and strategy that served as the catalyst for the merger and acquisition in the first place.

What do 바카 랏 think?  Have 바카 랏 considered these risk factors, and are 바카 랏 and your team preparing answers to these questions?

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Category : Mergers & Acquisitions

바카 랏 About the Author: Terina Allen

Terina is CEO of ARVis Institute, a management consulting and strategy firm, and Chair of ARVoices Strategic 바카 랏 Network, a global learning and executive development platform.  She has committed her research, education, and talents to…

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  1. Alex Dumpfree

    September 8, 2013 at 5:18 am

    M&A is really an important issue while doing business. These explanation would be helpful for stuck person in business field.

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