What is Post Merger Integration and How Fintalent’s Post Merger Integration Consultants Can Help Your Firm
Post-merger integration is the process of combining the human and financial resources from two post-acquisition companies to achieve efficiencies and synergies. Post-merger integration can be a complicated task requiring significant timing, attention to detail, and coordination. Business owners often have to rely on external consultants to handle this sensitive task with platforms such as Fintalent, the hiring and collaboration platform for tier-1 Strategy and M&A Professionals, offering some of the nest hands with regards to Post Merger Integration Consultants.
When two companies merge, there are many challenges that occur for both of them. One of the most difficult ones to overcome is post-merger integration because it brings about changes that can be overwhelming and unclear for employees and managers alike. It’s common to see people feeling overwhelmed by the change in work responsibilities and eventually resigning from their position rather than staying on board with post-merger integration considering how much they feel like they don’t belong anymore. When employees are not welcomed into their new roles, it creates uncertainty that can lead to fear, which can then result in poor performance. This is one of the many obstacles that managers of post-merger integration need to be aware of and plan for. Having a good transition plan will help provide a much smoother transition period.
Post-merger integration has a heavy focus on employees because it’s employees who will have the most interaction with customers and need to be able to speak with them about everything from pricing, benefits, and expenses to product research and additional business offerings. In successful post-merger integration scenarios there is little difference between the names used by both companies before their merger as far as customer service goes. There are many complicated things that will be changing, but your customer needs to know that nothing is changing on their end, which makes it very important to make sure your new employees are on the same page.
Post-merger integration is not only about integrating with customers, it’s also about making sure you are working with your employees in the right way. Making sure they are happy is key to creating a transparent and smooth transition of any merger. It’s of the utmost importance that employees feel like they have a voice and can effectively communicate concerns without fear of being punished or fired for putting their foot down. Employees should be encouraged to be as well-informed as possible about the changes they will have to work with and shouldn’t feel like they have been left out of the loop. After all, unhappy employees are more likely to leave their position. This can lead to a loss of service for your customers and a decreased amount of revenue.
Mergers are inevitable, so it is important that you have a plan for how you will manage them. Having a strategy in place will help you stay focused on the goals of the merger and keep employees from feeling overwhelmed or fearful that they won’t fit into their new company culture. With a good transition plan in place, post-merger integration is much smoother than without one. It allows for open communication between managers, front line employees, and customers.
As well as this, it’s important to take the time to make changes well beforehand. “Make changes ahead of time rather than trying to do it all post-merger.” This will prevent you from feeling like you are in a position where you need to rush through everything without careful thought due to time constraints. There are many aspects of your company that are bound to change with the merger. Take the time before hand and find out how each department interacts with one another and adjust accordingly so there isn’t any confusion once the merger has been completed.
There are many benefits to having a truly integrated workforce, whether it is your employees who will be changing their roles post-merger, or customers who will now be getting care from employees who work for both companies. Post-merger integration helps create an environment where teamwork is the primary focus and everyone is working together to encourage sales and complete customer service goals. Post-merger integration also creates an environment where customers are made to feel comfortable about asking questions and voicing concerns because they trust that they will be heard professionally and respectfully by the individuals who are working to meet their goals.
10 steps for Optimal Post Merger Integration
Step 1. Meet with Employees. Meet with all employees of the company in order to learn their feelings about the merger. Employees may have many concerns so it is important for them to voice their thoughts without fear or judgment coming from management or owners in attendance.
Step 2: Hold Meetings with Senior-Level Managers, Leaders and Traders. Meet with your most accomplished employees in order to gauge their feelings on the new firm. This will also give you an idea of what they need in order to be comfortable with the new situation. It is important for each employee to feel truly valued and appreciated in the new company.
Step 3: Hold Meetings with Middle- and Lower-Level Managers, Leaders and Traders. Meet with these individuals in order to get a good understanding of what is going on in the minds of every level of worker. Find out what the workers need in order to feel both at home and valued as part of the new firm. There should be no fear among the employees as they will feel one step ahead of their competition as they enter their new working environment
Step 4: Execute Personnel Integration. This is the largest and most difficult step. Actions must be taken quickly and efficiently in order to make everyone feel valued, wanted, important, and secure. For instance, if a worker has not yet had their work computer given over to them by management or owners, make sure it is done quickly without any delays or hangups. Many small mistakes can become big problems if not handled correctly. Execute the plan that you have put together for this specific employee.
Step 5: Analysis of Results. The results of these steps should be analyzed by each player to determine what needs to be done next. Each company should work together in order to make sure that they are on the same page, mutually understanding the steps required to integrate their two companies effectively.
Step 6: Control Implementation Processes. Once completed, make sure every step is now fully implemented and no one is wasting time or money (money can be very important too!). This will ensure that the transition period is as smooth as possible for all involved. Integration takes hard work and dedication, not hard-working hours.
Step 7: Determine Merger-Related Issues. Merger related issues are the ones that arise after the merger has taken place. These are things that management or workers can do to prevent incidents from taking place.
Step 8: Personnel Disputes/Discussion with Legal Counsel. It is very important for management, owners, and/or legal counsel to have a discussion regarding any disagreements regarding post-merger integration. There are many issues that can arise throughout this process, so it is crucial for everyone involved to be honest and up front about their concerns, or you may find yourself in some unwanted trouble down the road.
Step 9: Recruitment and Hiring. Keep working diligently to ensure that anyone important to the new firm gets hired and that each person has their desired role. It is very important from a business standpoint as well as from a personal standpoint for everyone to have a certain degree of comfort with their new working environment.
Step 10: Continually monitor the results of the merger. Once completion has been reached, monitor any issues as they may arise as you continue to grow as an organization. Issues can come up at any time during this period, through whatever means, which is why it is crucial for all parties involved to remain on top of their game throughout this time.
Step 11: Conclusion. Post-merger integration is a time period in which the two companies come together and integrate into one. It can be a long, arduous process that requires much effort and dedication from each player involved. If you do not give this full attention and hard work, both you and your company could suffer greatly in the long run. Post-merger integration is about moving forward in unison to ensure growth and true success in the new business environment.
Why You Need a Post Merger Integration Consultant
Post-merger integration requires a lot of hard work and dedication on the part of both employees and managers alike. Having a transition plan in place will make it much easier for everyone involved to adapt to the changes that are sure to come. It is important to take your time with integrating your new company’s staff. Take the time to do everything right, because there are many people who are counting on you to make it work.
A mistake could be costly as delayed integration of both organizations will continue to impact negatively on performance and output. This is why hiring of an external post merger consultant from platforms such as Fintalent is often recommended for businesses without adequate in-house expertise and manpower. Fintalent’s Post Merger integration consultants bring to the table practical knowledge and years of experience in all things Mergers and Acquisitions.