Post-Closing Transition Integration
Acquiring or selling a company is the easy part. The real challenge begins when you have to integrate cultures, standardize compensation systems, administrative processes, IT, and accounting. E|Enginuity's team has decades of experience in acquiring, integrating and growing companies. Although there are numerous components to this art, there are 3 primary areas of focus.
People & Cultures
Every company has a corporate culture. Some enhance business growth, while others retard it. Regardless of the type of culture, whenever one deals with human beings in business, there is the chance to make serious and long lasting damage if not done properly with those experienced in this fine art.
Employees, for the most part, do not initially welcome acquisitions for that means CHANGE. Change can be good, but it is perceived as painful. A skilled integration manager recognizes this and uses the best methods for the post-closing integration. The style will depend on whether the acquisition is being forced merged or left in a semi-autonomous state, the type of company, the particulars of staff, level of compensation, turnover rates and many other variables.
Probably the toughest part of this phase is dealing with the standardization of compensation and benefits. If not handled properly, there can be a disaster from the start.
E|Enginuity knows this part of growth and can assist you with a smooth integration.
Although this area is not as personal and emotional as the people and culture aspect, you are still dealing with human emotions, as each controller, CPA, and payroll clerk has their way of doing things. With proper training and experience this part can be overcome easily.
The more important aspect of integrating the financial systems of two or more companies includes:
Operating System choice
IT integration with Operations
Equipment & Technology
E|Enginuity, along with your operations, IT and accounting personnel, can evaluate and recommend the best approaches whether it be one or several changes that best fit the objectives of the investors and company management.
You don't want to leave this critical piece unattended. You will get an objective recommendation and implementation assistance from E|Enginuity.
IT & Operations
Unfortunately for the AEEC world, technology has advanced faster in the digital and computing industries than most companies can keep up with. This has resulted in a lot of non-standardized systems and technology that requires interfaces, programming and methodical implementation.
E|Enginuity utilizes the very sophisticated G3 Accelerated Value Diagnostic to help evaluate the operations of the target acquisition. But, it can also use the same approach and technology for evaluating the IT operations of the parent acquiring company. This forms a baseline for decision making for integration of the operations of the combined entity.
The audit focuses on what is right and what can be improved. So, when integrating two operating systems, this can be a good start for making the right decisions.
E|Enginuity can assist with objective recommendations to insure that the integration goes as smoothly as possible, whether in one move or over time.