Comments on: How to Integrate an Acquired Company: Lessons from IBM

By: Charlene Sabin

Charlene Sabin — Fri, 27 Jan 2012 06:05:10 +0000

I am conducting research on best practices for integrating newly acquired businesses with existing businesses. Does anyone know of well written information on that topic? I have had a difficult time finding specific information.

By: Ro Gorell

Ro Gorell — Wed, 07 Oct 2009 11:00:43 +0000

Integrating an acquired company is about balancing the dynamic of people, processes and technology. ‘Driving through change’ as Miyashita describes it misses the point that the ‘people’ part of the equation are probably the biggest single reason why integrations fail to achieve their objectives. Good project management skills and the ablity to relate to people at all levels are definitely a pre-requisite for integration. However, understanding the pscyhology of the organisation you are acquiring and how the two cultures will be integrated is all together a different skill set. Maybe this is why the previous commentator experienced difficulties. Successful acquisitions are few and far between and some of the issues that can be encountered don’t always emerge straight away. Focusing on value is a good start but focusing on values is where the trick is. This is one of the key reasons why integrations don’t always achieve their stated outcomes. Focusing on values is more about the underlying cultures of both organisations and this requires much more than just good projecct management and interpersonal skills.

By: Ramesh

Ramesh — Thu, 08 Jan 2009 03:28:39 +0000

Surprised to see IBM’s suggestions on integration of Acquired Companies. I have experienced the difficulties when they acquistioned a software company. The team who handles merger, dumps all employees into one division of a given Business Group. The managers are given extra load and do not take care well. They did not bring compensation at par with existing employees. Title would be better if it said as “Lessons Learnt by/from IBM”. I would get this kind of articles written by Staff who have joined through acquisitions and not by managing such portfolio.