7 Biggest Mobilization Hurdles Of Your M&A Integration
Anirvan Sen Contributor
Anirvan Sen https://www.linkedin.com/in/anirvansen
Mobilization is defined as “the act of assembling and readying military troops and supplies for war” as per Wikipedia. This exercise is usually done in quick time and in a structured manner to achieve a high level of readiness to enter a war. Mobilization is a term that is also, commonly used in transformation projects including M&A integration. But when it comes to M&A Integration, there are multiple mobilization hurdles that one can encounter.
Here I will explain to you with 7 biggest mobilization hurdles for your M&A integration.
BUSINESS AS USUAL
Most resources engaged in M&A integration are sourced internally. Apart from a couple, these individuals have day jobs and certain responsibilities. When they are requested to join the M&A integration project, it is usually, in addition to their business-as-usual responsibilities. The organization intrinsically believes that the individuals will be able to handle both the requirements well.
LITTLE ROOM FOR ADDITIONAL WORK
It is a common misconception that the volume of work required in M&A integration can be easily managed by individuals on top of their daily work. The assumption is that everyone at least has the capacity to take on 20% or more work at any given point in time.
Unfortunately, the reality is quite different. In an average corporate world, the kind of resources that need to be allocated to M&A integrations, juggle multiple priorities and are bursting at the seams with work. Putting any additional amount of work is likely to result in some priorities being dropped.
NO UPFRONT PREPARATION
Due to high levels of secrecy in an M&A transaction, organizations are not able to prepare up-front. Unlike other transformations like ERP implementation, new product launch, and new market expansion, which have long runways, M&A integration only gets a noticeably short window to prepare.
ALIGNED THINKING
The CEO knows the importance of a specific acquisition. The corporate development team also knows the importance. Some members of the executive know this as well.
NOT INTERNALISED THE URGENCY
As mentioned earlier, organizations neither get time to prepare up-front nor can get along the window for planning an M&A integration. This creates a big challenge for any integration.
MEANS TO ACHIEVE OBJETIVES
Clarity must be provided on how these individuals are expected to achieve their goals.
This would translate into providing training, onboarding, acclimatizing with the details of the acquisition. They should be provided with technology and tools. They must be coached on how to use templates. They must be mentored on managing priorities, situational leadership, right-time escalation, and providing timely updates.
INCENTIVIZATION AND CONSEQUENSES
Probably, the biggest hurdle in an integration mobilization is the lack of clarity on incentives as well as the consequences of non-adherence.
WIIFM, What is In It For Me, is commonly not addressed in most organizations when individuals are asked to contribute and participate in an integration.
The majority of M&A integrations fail. But they do not have to.
Organizations must become smart and take heed of these points in their integration.
Hope you enjoyed this article !
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Sebastian Amieva
Investor / M&A Expert / Mentor
www.sebastianamieva.com
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