Question

Why is the integration phase of the acquisition process considered so important? Why should acquired companies be integrated quickly?

Answer 1

It is considered that the integration phase is the most important phase of all the phases in the process of acquisition. Researchers consider that the main reason for a failed merger, amalgamation or acquisition is due to failure in the integration phase.

Integration phase is a phase in which the newly acquired company faces sever challenges, especially in the field of division of work and authorities, it is the time when the competitors would target the company and might be very harmful if this phase is delayed as the company itself shall act against its will due to people related issues. Leaders should be selected as quickly as possible so that there is no dispute within the team.