Corporate Performance Strategies Provides M&A Expert Source.Business Editors ATLANTA--(BUSINESS WIRE)--Nov. 10, 2003 Merger activity is expected to pick up as the economy continues to improve. Should you need an expert source on mergers and acquisitions - especially on the topic of why some fail and others succeed - please consider David A. Brookmire, Ph.D., president of Corporate Performance Strategies. Brookmire's Atlanta-based firm is a senior-level business management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects company with particular expertise in human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. issues - always critical factors in M&A. You may contact Brookmire at 770-587-2265, or dbrookmire@cpstrat.com (www.cpstrat.com). Just a few best practices Brookmire recommends to make sure a merger lives past its first year include: Speed: The transition must be swift and cannot be allowed to prolong pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. itself. Managers must rapidly make tough decisions regarding a variety of issues: customer and prospect communications, phone greetings, business cards, consolidations, benefits plans, compensation practices, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , new leadership, branding, downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing and other issues. Having a well-defined plan and process increases the chances of successful integration. Consolidated management: The best and most viable deals actually name the senior management team prior to closing or immediately afterward af·ter·ward also af·ter·wards adv. At a later time; subsequently. Adv. 1. afterward - happening at a time subsequent to a reference time; "he apologized subsequently"; "he's going to the store but he'll be back here . Everyone's eyes are on the top leadership team and this is critical to success. No missteps can be made here. Vision: A clear, concise, understandable and achievable vision must be established for the combined entity - and it absolutely must be communicated internally and externally, constantly. Communication: Communication. Communication. Communication. Leadership: Appoint a senior executive and vest him or her with complete responsibility and authority for implementation of the integration plan. That will be their only job 24/7. This executive should resource the integration function and not assume employees with regular jobs can handle the new set of tasks presented by integration. Cultures: Realize that most integrations fail due to cultural mismatches, so understand the changing dynamic of the emerging culture and consciously work to manage the blending smoothly. Operations: Develop combined sales/marketing/service plans. Focus: Smart merger managers put their focus on the 20 percent of the business opportunities that drives 80 percent of the value in the deal. Staff realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. : Remove those who do not support or fit into the new culture and consider retention programs for key employees who clearly will be long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. and team players. Make the tough decisions now. |
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