While executing mergers and acquisitions (M&A) deals can in themselves be extremely complex, post-merger integration can also throw up major complications, resulting in some companies failing to achieve the desired results. According to a recent survey Making M&A successful: post-merger integration by consulting firm PwC India, companies feel that employee expectations, organizational culture and IT integration are the main factors responsible for integration complexity. Companies that have conflicting cultures and leadership styles are at risk of losing their top employees, having stretched integration periods and, ultimately, of failing to capture deal value. Secondly, it must be appreciated that the merged entity is not going to get to this new design state overnight. Realistic time frames, intermediate/transition structures/states and adequate support in managing the associated change will help make the design feasible. Faster pace of integration and milestones were also highlighted as a crucial area of integration focus. This becomes critically significant for companies in sectors such as technology, where markets are changing rapidly.

(DealStreet Asia)