MetalMiner is pleased to invite Paul Glover of the consulting firm The Glover Group started in 1992 to help companies survive the WorkQuakeÃ¢â€žÂ¢ of the Knowledge Economy by improving workplace performance and increasing job satisfaction. Jay Frischkorn, of Strategic Profitability Consultants co-authored this piece. This is part three of a three part series structured as a metal service center merger and acquisition case study. You can read Part One here and Part Two here.
These Disastrous Results Would Have Been Avoided if the Acquiring Company Had:
- Engaged in an “Organizational Due Diligence Process to provide the Acquiring Company’s Management Team with the critical information necessary to reveal the true costs of the acquisition.
- Began the development of the Post Acquisition Integration Process when the Acquiring Company’s Management Team was 80% certain the acquisition would be made by assigning one of the Management Team to lead the Post Acquisition Integration Program.
- Negotiated a payout of a portion of the acquisition price to the previous owners based on measurable success of the Post Acquisition Integration Program.
- Negotiated shorter-term employment contracts with the previous owners. The length of the employment contracts reduced the urgency of completing the Post Acquisition Integration Program and gave the previous owners no incentive to complete the Program in a timely fashion.
- Developed a Comprehensive Communication Strategy to facilitate communications between the managers of each department of the Acquired Company with the managers of the corresponding Department of the Acquiring Company within 30 days of the acquisition’s closing.
- Developed a Comprehensive Communication Strategy for the Acquired Company’s Customers within 30 days of the acquisition’s closing.
- Designated one from the Acquired Company’s Management Team as the second Post Acquisition Integration Program Team Leader to become the chief proponent of the Post Acquisition Integration Program as soon as the acquisition closed.
- Developed and implemented a Comprehensive Communications Strategy for both the Acquiring Company and the Acquired Company’s Employees as soon as the acquisition closed.
- Determined who among the Acquired Company’s Management Team will stay and who will go within 30 days of the acquisition’s closing.
- Created a Post Acquisition Integration Program Team comprised of personnel from the affected departments (i.e. IT, transportation, HR) of the Acquiring and Acquired Companies to oversee the integration of the merged operations and workforces within 30 days of the acquisition’s closing.
- The Post Acquisition Integration Program Team creates and implements a detailed 90 Day Integration Process within 30 days of being formed.
- Completed the Post Acquisition Process within 180 days after the acquisition closed.