An integrated company requires a strong decision-making structure to manage decisions, coordinate work streams, and establish the pace. This should be supervised by a highly experienced individual with a strong leadership capability and processes, perhaps a rising star in the new company or a former leader from one of the acquired companies. Ideally, the person selected for this position should be able to dedicate 90 percent of their time and energy to this role.
Lack of communication and coordination delays integration and prevent the combined entity from achieving rapid financial results. Financial markets expect early and substantial signs of value capture, and employees may take the delay in integration as an indication of instability.
In the meantime, the core business must be a priority. A lot of acquisitions result in the possibility of revenue synergies. These can require a lot of coordination between business units. For instance, a customer products company that was limited to certain distribution channels might combine with or buy an organization that utilizes different channels, and gain access into untapped customer segments.
Another danger is that a merger can absorb too much of the company's attention and energy which can distract managers from their business. The company suffers as result. Additionally, a merger acquisition might not be able to address issues with culture - one of the most important factors in employee engagement. This can result in issues with retention of talent and the loss important customers.
To reduce the risk be clear about the non-financial and financial results that are expected from the deal, and when. To ensure that the integration taskforces can move forward and meet their goals on time it is crucial to assign these goals to each.