Decagon Partners recognize that many mergers and acquisitions fail. In our experience the common threads we have found in the failures have been a lack of pre-acquisition planning and post-acquisition integration. (Granted there are other reasons for failure, which include inadequate due diligence and overpayment and we address both of those in our other mergers, acquisitions and valuation services).
Decagon Partners' Integration Services utilize our FADE process with a project management methodology to ensure that the more common reasons for failure, which we have listed below, are addressed:
A Plan to Win becomes a Winning Plan with a Successful Integration
- Lack of involvement of key constituents during the integration process (leadership)
- Cultural differences
- Organizational structure dysfunction
- Operational integration issues
- Lack of communication mechanisms
- Shifts in strategy
- Loss of staff retention/morale
- Lack of a written integration plan
What are the critical success factors for successful integrating an acquisition? We believe it begins with a plan that establishes ownership, promotes involvement, enables effective decision-making, provides mechanisms to track progress and ensure accountability all mapped to a timeline for execution.
What should be clearly understood by everyone is that "Integrating Acquisitions is not Easy".