Merger activity will continue to gain momentum in 2004 and integration will remain a “hot topic” with senior executives. The authors have distilled the critical success factors underlying integrations that drive shareholder value. These success factors are brought to life through best practice examples, including: (1) synergies that make the merged company better able to increase revenues and gain market share than either company could on its own; (2) the importance of early, detailed planning in conjunction with clean teams, active senior management commitment and an “adopt‐and‐go” attitude; (3) a focus on growing the existing business, companies that apply the 80/20 rule – spend only 20 percent of the time on the merger – don’t lose sight of their business and customers; (4) communicating early and often to customers, employees, partners, investors and the media with a realistic assessment of the facts rather than being overly optimistic; and (5) envisioning the desired culture they are looking to create for the new entity and building the sense of community among employees of both organizations.
de Camara, D. and Renjen, P. (2004), "The secrets of successful mergers: dispatches from the front lines", Journal of Business Strategy, Vol. 25 No. 3, pp. 10-14. https://doi.org/10.1108/02756660410536955
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