Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances

Part III. The Combination Phase

After receiving legal clearance and the deal is done, the combination phase of M&A commences. This phase has its own unique challenges: holding on to customers and talent, countering the Merger Syndrome that can afflict both firms, keeping the two businesses running while restructuring one or both of them, engaging people in transition teams, and initiating the physical combination of firms, all the while weathering a culture clash. What complicates the combination process?

• Integration seen as a distraction from "real work." As responsibility moves from corporate staffers to line executives, reality hits hard. Operating managers see inflated projections and don't know how to meet the numbers. Meanwhile, executives ...