Mergers and acquisitions (M&A) can often feel like a high-wire juggling act: There are a lot of balls in the air, but even one misstep can mean a long and costly bounce down.
To avoid this fate and preserve the anticipated value of the transaction, C-suites and their deal teams need to start planning and implementing their organizational redesign as early as possible. How will talent, roles, and reporting structures function in the new entity?
An early-and-often emphasis on organization design points the way. You need to keep the right people in the right slots—with the motivation and resources they need to do their jobs—while also managing redundancies and integrating cultures and systems.
Fail to properly plan and then execute this org design juggling act, and your business may stumble as you lose key talent, morale, and expected value—as evidenced by the long history of failed mergers and the related write-offs, downsizings, and even bankruptcies that can follow.
But getting things right well before Day 1 and building org design into the deal process from the start can help ensure a smooth M&A transaction with the expected value intact, as we outline in our recent report on value preservation during deals.