Many deals are motivated by the excitement of being larger, the expectation of higher profits, the opportunity to gain the value of assets of a company that may be undervalued, to gain market share ..and the list goes on.

The success of a merger or acquisition is dependent on quite a few very important factors. It is my view, the number one factor is synergy. When the deal is done the goals established prior to the deal must now be achieved.

The integration plan should largely be mapped during the due diligence phase. However, all the required facts for integration of two cultures will not be discovered and all of the issues surrounding convergence of people and systems will not be known during due diligence.

What is the number one barrier to successful integration of two businesses and the achievement of profit goals? You must know this and have a plan to deal with it or you will have problems. The situations are different in a merger vs. an acquisition. However the number one issue is the same, That issue is the people.

Steve Pohlit

Exec Net Consulting

The Profit System