The speed must take precedence over perfection

OPA hostile, friendly reconciliations... The war of the mergers & acquisitions machine is packed. This fever of conquests, this race to the critical size, the inevitable and necessary March towards the "overall" size, however, should not obscure the human dimension of the reconciliations of companies. Too often, it comes down to the reduction of staff resulting from the sacrosanct rule of search for synergies so dear to financial markets. Some recovery of the mergers & acquisitions market must not be forgotten that it is a risky bet. If the keys to their success in terms of strategic and financial factors are now well anchored in the minds of leaders, human capital is still too often the "poor parent." And yet, it is an inseparable parameter of value creation and an undeniable risk factor. Despite the lessons of the past, too few companies spend a vision to the extent of the challenges it represents.

Do not forget... Upstream operations of mergers, especially if it's hostile raids, employees, at all levels of the hierarchy, are mobilized for or against a cause for which they leave in crusade for the defence of the interests of their business. However, when sometimes closing, that they are "dominant" or "dominated", they must immediately and unanimously to speak in the language of the winner... left to recant their beliefs of yesterday!

In this context, a strategy, so be, cannot be successful by the conviction of the men to ensure its implementation.

Gone is the era of monopoly seduction of shareholders

Aware of the critical nature of these issues, BearingPoint conducted in collaboration with HEC Entrepreneurs, a study based on the interview of Presidents and leaders of major French CAC 40 groups that made the news of the market of the mergers and acquisitions in recent years.

The investigation revealed that immediately after the strategy, the second factor key to success of a merger-acquisition operation is human capital, before even the synergies. This awareness is reassuring but, in fact, it is not be generalized.

In this context that induced uncertainty, loss of benchmarks and identity, leaders have a major role to play in the success of a transaction by calling on the project of reconciliation, motivating and persuading the key people. They also play a central role in the choice of the culture of the company.

The importance of communication, frequency, quality and "truth" even more is paramount in such operations. The announcement of bad news or difficulties in the more quickly is more environmentally friendly that "deny" and let it rot the situation. In particular "does not promise that it will not be able to hold" is an adage which has more than ever the meaning in a matching operation.

The explanation of the project, its reasons and its look and its impact in terms of employment must constitute the major points of the communication. The issue of wages, contrary to what one might believe, sometimes long after.

Motivation, it is the most critical element and requires a high speed of decision making. The rapid appointment of the management closest to the closing is indeed one of the essential points of a successful integration. This allows not to break the dynamism of the teams and to ensure the steering of the company in a transitional phase where the new group is not fully operational. Appointing managers key also allows to reduce this period to any anxiety. The speed must take precedence over perfection. In 60 of cases, the key executives are appointed in 30 days around the closing.

Finally, with respect to the issue of culture, it is often treated in terms of power and power which is a source of failure. Its treatment often leads to confusion and resistance. But respect for the culture of the other does however not mean melting pot of the two ancient cultures, source of disorder and revealing a lack of realism. It must at all costs avoid culture "sages" in the interests of fairness between companies.

The purchaser when he designed a real strategic project should seek to bring out the cultural elements to achieve the expected performance. Therefore, experience the culture of the purchaser is able to meet this challenge. Seek a high level of respect, confidence and relational quality to build the new together in rest not less the challenge of the two "stakeholders" and actors in the reconciliation: probably even a point of vigilance and efforts redoubled on the part of the purchaser.

Create value, it is register integration project in time and with the men of the company. This is the challenge of reconciliation operations, which cannot afford effect announcement and management remote and theoretical human dimension.