The Post-Merger Turnaround
Ventor’s Principals are particularly aware of the difficulties of integrating
a new operation. There are two types of traps that await a merger. These
are, first, the immediate, intensive and unforgiving task of making the two
organizations one. Second, the longer term mission of making the organization
effective.
Signs that this mission needs to be addressed?
Negotiating peace, if not a smooth transition, between the old regime and the new. Signs that this peace hasn't yet been negotiated?
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Complaints about the new management, business metrics or plans
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Missing deadlines set by banks, the Board or internal working groups
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Ineffective meetings, or worse, old managers who play power games or go off the reservation.
Lack of integrity in the numbers. Signs that this needs attention?
The company isn't accustomed to making paper plans into reality. Project planning, with defined responsibilities and milestones are not resident to the extent the owners require.
Slowness in getting the systems to behave, resulting in late reports
Roles and responsibilities haven't shifted to ensure that accounting duties are properly segregated. This means that the new owners may not have full control over company assets
Marketing and sales not responding. This happens when:
Customers are sitting it out on the sidelines because the owners are not from the industry or because turmoil has become public
New products and services aren't ready—and Sales gets the blame