When one company acquires another, some leaders mistakenly assume that one company can just be inserted into the other. They believe that the process is plug-and-play, requiring little if any supporting plans.
In reality, post-merger integration (PMI) is often messy. Without a comprehensive strategy in place, issues are guaranteed to arise.
Luckily, there are things finance heads can do to make sure the deal is successful. Here’s a look at top finance priorities for PMI that can help CFOs and other finance executives in control.
Have Interim Finance Operations
Keeping the financial side of the business running is essential. It’s critical that support operations remain in place throughout the merger process. Otherwise, invoices might not go out to customers, vendor payments may be late, and reporting requirements might get overlooked.
Precisely what your interim finance operations will look like can vary. Just make sure that any activities that need to continue are formalized and that there’s a high degree of overall visibility. That way, even if employees leave during the acquisition process, the team can track what has been done and what still needs to be handled.
Identify Key Talent Early
Since you’ll need to integrate finance teams, you need to determine who the key talents are, where they will be placed within the organization, and how to keep them in place. Without the right skills and employees available, the finance side of the house can crumble quickly. And, since mergers can be tumultuous, you need to make sure your best and brightest are willing to ride the inevitable waves.
Once you know which top performers are critical, take steps to keep them engaged and feeling secure as soon as possible. so that uncertainty won’t have them heading for the door.
Identify a Goal to Serve as a Beacon
When you start restructuring, you usually have to bring employees together during a stressful time. If you want to make the process easier, identifying a common goal that can serve as a post-merger beacon is a smart move.
By doing so, you are giving everyone a clear target. It functions as an initial mission, creating a point of focus and defining a core priority. Essentially, you are giving your employees something to rally around, and that can help make the transition easier.
Coordinate with the CIO or CTO
Not all companies use the same technologies. Since conflicting technologies can wreak havoc in finance departments, it’s best to start coordinating with the CIO or CTO as soon as possible. That way, any extensive integrations or data migrations can be planned out well in advance, giving time for issues to be examined, risks to be mitigated, and alternate solutions (if necessary) to be identified.
Ultimately, all of the points above qualify as finance priorities for PMI. If you’d like to learn more about navigating mergers successfully, the team at The Squires Group can help. Contact us with your questions today and see how our PMI expertise can benefit you.