Communication is the key part of M&A activity. A detailed communication strategy should be developed that details how internal and external audiences will be kept informed of progress. Failure to adequately address communication issues typically results in confused customers, sub-optimal organizational design, and massive employee paranoia.

To perform a complete assessment of merging entities it is typically necessary to analyze from multiple angles. The purpose of each component of the assessment is twofold:

1. determine the weaknesses of the new / combined unit that can be improved upon, and
2. determine the strengths of the new / combined unit that can be leveraged.

Once the analysis is complete best practices should be established and implemented. Ongoing monitoring will be critical to verify best practice and facilitate adjustments when necessary.

The bulk of the performance measurement work in this process should be done in the assessment stage. This is when the categories for data collection will be selected and processes for collecting it will be established. The information gathered in this step will be used throughout the merger and form the foundation of an ongoing performance measurement system post-merger. Therefore, this article will focus primarily on the assessment step of the process.