Acquisitions - a match made in Heaven?

The final stages of an acquisition deal can be all consuming, but operationally, post completion has when the real work begins. The nature of the acquisition and the relationship between Vendor and Purchaser will determine the challenges in integrating the acquisition into the future structure. Katherine Broadhurst, Corporate Finance Partner at Azets, explores the key areas to focus on once the deal is completed and the ink is dry.

People Power
People are central to the success of any business. New working relationships need to be established and this process may start before completion for senior management. Their leadership will set the tone going forwards with the integration. Challenges to be faced include:

  • Changes in culture impacting previously formed identities.
  • Geographic distance and the balance between independence and integration.
  • Potential redundancies to achieve envisaged cost savings.
  • New reporting structures/requirements impacting on established job titles and roles.
  • Vendor role and any potential ongoing impact on culture and integration.
Employee motivation and morale are critical in this scenario, with time and clear messaging required to manage things positively. It should be recognised that some staff changes are inevitable.

Management information
A certain level of understanding will have been gained in due diligence. Having accurate and timely financial information is needed to monitor performance and improvement of the newly acquired company. Integrating into the wider group provides efficiency. Software and staffing are key elements to achieving this.
Ultimately the success of the integration in all other aspects will emerge in the financial performance!
If you wish to discuss how we could assist you with acquisitions, please contact Katherine Broadhurst, Partner, at Azets katherine.broadhurst@azets.co.uk or call us on 01872 271655.