The quote, “We tend to overestimate what we can accomplish in a day and underestimate what we can accomplish in a year,” rings especially true during mergers and acquisitions. My company, EMJ, was recently acquired by SYNNEX, after EMJ had itself acquired 12 companies. Based on these experiences, here are key lessons for successful mergers:
1. Challenge Assumptions: Don’t assume all companies operate identically. Even within the same industry, businesses are unique. Subtle differences are easily overlooked. A common mistake is assuming struggling companies lack competent management, easily fixed by a “well-run” acquirer. This is rarely the case.
2. Plan Meticulously: The excitement of a merger can overshadow detailed planning. Plan every aspect, considering customers, suppliers, and staff.
3. Plan for the Downside: Optimism is crucial for entrepreneurs, but in high-risk mergers, always assess potential downsides and create contingency plans.
4. Be Flexible: While having a plan is essential, be ready to adapt it based on new information and results.
5. Embrace Learning: A learning culture is vital for success. During integration, recognize and capitalize on learning opportunities.
6. Persist: Overcome challenges with unwavering persistence. It’s key to navigating the integration process.
7. Think Long Term: Long-term vision is what builds a truly great company.
Acquisitions typically progress through phases: initial excitement, integration work, and often, disappointing initial results. However, with thorough planning and a well-conceived strategy, a third phase emerges: true performance and synergy.