Change is simple, but adapting to it is not easy.

 

Functional & Strategic Integration

 

𝗪𝗵𝘆?

 

Typically the period after the deal closes is filled with confusion and uncertainty. It just takes some time to process what has happened.

 

Acquisitions necessarily focus on financial capital. Financial capital requires: 1. proper management 2. process & procedure 3. gaining efficiencies. Integrations are more focused on intellectual capital. Intellectual capital requires:

1. good leadership

2. purpose & passion

3. gaining confidence

 

When an acquisition deal closes and moves into the integration stage, it moves from financial capital management to intellectual capital leadership. 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗯𝗼𝘁𝗵 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗮𝗻𝗱 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰. Functional integration focuses primarily on back-office and cost-efficiency. These aspects are in the purview of the CFO.

 

Strategic integration focuses mostly on future opportunities and the CEO would lead this effort. 

What would you add to my Point Above?