In the government contracting space, which we affectionately refer to as GovCon, Mergers are routine events. We routinely read about routine acquisitions of companies on a routine basis here in the National Capitol Region. What isn’t so routine is the the process by which the firms integrate their cultures, processes, products, and people. Any student of the experts in the field (experts like Price Pritchett of www.mergermanagement.com) learn very quickly that all that upfront investment in building the pipeline, finding the candidate, doing the due diligence, and making the best deal possible is wasted when there isn’t a solid, comprehensive plan for integration of the people and the contracts into the acquiring firm.
This is much more than just the standard ‘we only need one HR Department, one Contracts Department, and one FSO’ kind of discussion. My very first exposure to an integration taught me that the number of things you can screw up (and believe me, we screwed up a bunch) far outnumber the things you check in due diligence. From FSO qualifications to accounting systems compatability to just getting everyone to give up their old company badges, the list of things that make an acquired firm far less valuable later on is long, and illustrative.
Integration Is Key………
You need a day one plan – a plan that takes into account the concerns of the HR staff, the worries of the on-site personnel, and the processes, procedures and cultures that go along with the acquisition. The plan needs to be written while the deal is being negotiated – NOT written a week after the contract is signed (like most of them are).
What’s the risk if you don’t write (and execute) a good plan? Let us show you.