Whatever precedes this stage can still be rendered worthless if the ultimate purpose of the deal – the successful integration of the target – is not achieved. An effective post-acquisition strategy is therefore a vital component of a successful acquisition, and post-acquisition planning needs to start before the deal is finalised.
Decision 6: plan early to realise the benefits of the deal. Postacquisition integration decisions should take into account:
the overall strategy of the business;
the culture and management styles of the two organisations;
issues of presentation, communication and understanding;
customer-focused market issues – it may be a grand plan, but how will customers, current and potential, react? Can this be turned to the acquirer’s advantage?
people management issues, in particular motivation, empowerment and innovation;
management procedures and systems, especially for it and finance;
the need to inform shareholders.
One of the most intriguing mergers of recent years was the deal between Germany’s Daimler-Benz and America’s Chrysler Corporation. It was intriguing for many reasons, not least because initially it was far from clear whether it was a merger between approximate equals or an acquisition by the larger Daimler. It became clear it was in effect the latter. It provides a valuable case study of the perils of structuring a massive corporate deal.
