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Introduction

The Merger & Acquisition Process

Conducting an Assessment

Customer Perspective

Process Perspective

Learning and Growth Perspective

Financial Perspective

The Merger Scorecard- Wrap Up

Introduction

Mergers and acquisitions can be very exciting events for an organization. The promise of top and bottom line growth through synergy with another company can excite executives, Wall Street, and customers alike. Unfortunately, this promise often goes unrealized. Why? Because many times the focus is concentrated too heavily on financial integration. Companies scramble to demonstrate how to combine reporting systems to demonstrate the size and profitability of the new entity. While this is important, the definition of success of a merger should extend beyond the presentation of short-term financial results. A truly successful merger can yield a larger and more satisfied customer base, streamlined processes made more efficient through shared best practices / economies of scale, enhanced products, and a more productive and cost-efficient work force. Establishing a proper set of performance measurements to be used during and after the merger is a critical step toward realizing these benefits.

This article will begin with a generic outline of the process to be undertaken during a merger / acquisition. This will be followed by recommendations for how to select the proper performance measures to ensure the organization is covering all the bases and therefore giving itself the highest probability of success.

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