Company Mergers

26 October, 2021

What needs to be done for mergers, which are so frequent nowadays, to achieve the expected benefits?

From the perspective of our experience advising various companies during their mergers, we have observed that for them to achieve the financial, market, and human benefits defined in a business case, the following are indispensable:

Understand the cultural and human factors that have made the merging companies successful
Put together an implementation plan for the merger based on the positive aspects of both cultures looking to optimize them
Objectively include in the due diligence all matters related to the human element in both companies
Have a project team from the moment a business case is put together dedicated to determining the viability of the merger and responsible for its implementation
Have a Change Management team as part of the project team. That is have a group of people whose role it is to think of the effect the integration will have on the people looking to maximize the benefit for the human element and motivate their commitment.
Redefine the project team to include members from both companies once the integration begins.
Redefinir el equipo del proyecto, una vez se comience a desarrollar la integración, con la participación de personas de ambas empresas.

With these steps and some others, you could have an optimal culture and a committed group of people and a high probability of attaining the financial and market results expected of the “new organization.”

Focusing the mergers principally on financial and market matters leads to mergers around the world achieving a success rate under 25%. That is why methodically handling the human side of this “new organization” is definitive and substantially increases the possibilities of success.

At Human Group we can accompany you in maximizing the success rate of the integration process of the merging companies.

Have you participated or are you now participating in a merger?

Which of the suggestions mentioned above do you think are more important for successful organizational integrations?