Question: Why does our company need assistance to ensure Post Merger synergies are realized?
Answer: Seventy percent of companies that are acquired / merged never realize the envisioned synergies. The number #2 issue that limits the cost efficiencies of the merger and / or acquisition, after corporate culture, is infrastructure.
Most mergers and acquisitions have utilized “an army of attorneys and financial analyst” in the determination of the future possibilities, opportunities, and synergies. Yet, once the new company is launched, the culture, infrastructure, financial reporting abilities, and systems dramatically reduce the ability of the new company to start running “out of the gate”.
The challenge is generating synergies and optimizing the “best of breed” of processes, information, culture, and infrastructure. An experienced independent executive that is “focused like on laser” on this project and only this project can significantly improve your ability to delivery the synergies.
You really get one “shot at the merger” so you want to make certain that is it organizational sound with the right team, infrastructure and financial reporting. Most executive may do this once in a career.