Complexity in Post-Merger Integration
M&A transactions magnify and intensify all the normal issues of relationship management. During post-merger integration, there are more relationships and more complexity; problems are brought to surface and become more urgent.
When your company acquires others, you also acquire those companies' business relationships and their contracts. There may be overlapping contractual relationships with the same counterparties. Key people (with their skills and knowledge) leave or get different roles. Lack of access to key information about contractual relationships leads to revenue loss, inefficiency, and risk.
Opportunity and risk
Companies acquire other companies generally for two reasons: to increase revenue or to gain efficiencies. Growth can come by acquiring new product lines, by integrating horizontally, or by gaining control of new distribution channels. Efficiency may arise from vertical integration or increased scale.
Many issues can hinder the realization of these desired benefits. External relationships can prove difficult to consolidate. People leave, taking needed institutional knowlege with them. And any number of surprises may pop up to derail the integration process and destroy value.
How Contracts Intelligence can help
In the post-merger environment, the newly aligned leadership and remaining employees must have robust tools and information to sustain the quality of their work, whether in sales, customer service, finance, legal, or other organizations.
Pramata’s Contracts Intelligence accelerates the integration of acquired businesses by giving insight into complex contractual relationships across both existing and acquired business units.
By using Contacts Intelligence you realign organizations more quickly, push new businesses into your channels faster, and find any inherited landmines.
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