Postclosing Integration

The integration phase is an important contributor to the ultimate success of the merger or acquisition, and ineffective integration is commonly given as one of the primary reasons mergers and acquisitions sometimes fail to meet expectations. This chapter outlines a practical process for realizing successful integration. The critical success factors include careful premerger planning, candid and continuous communication, adopting the right pace for combining the businesses, appointing an integration manager and team with clearly defined goals and lines of authority, and making the difficult decisions early in the process. This chapter concludes with a discussion of how to overcome some of the unique obstacles encountered in integrating business alliances.