The Importance Of Merger and Acquisition Integration In A Company’s Growth

In the business arena, no single business can stand without the help of another. Mergers and Acquisition integration is the process that is composed of different transactions like a merger, an acquisition, a consolidation, management acquisition, purchase of assets and tender offers. All these involve two companies where in one company provides an offer to buy the other which may include all its assets or just a part of it. Both parties should have a clear understanding regarding internal transactions to have a better and longer integration plan in place.

So what does all these technical terms mean?A merger is when both board of directors of two companies are in agreement to combine assets and is approved by the shareholders. After a merger happens, the company that was acquired will no longer exist, but will become a part of the company that did the acquiring. An acquisition, on the other hand, is the acquisition of a company’s majority assets but the structure remains unchanged. Both companies can retain their names and the form of organization. A consolidation happens when stockholders of two companies approve a consolidation resulting in the creation of a new company. All stockholders will receive common equity shares in the newly formed company.

What are the best practices in merger and acquisition integration? When one company acquires another company, it is crucial to the success of the business to follow the best practices in acquisition integration.

1. The first thing you have to remember is that you have to move quickly because everybody is expecting changes to happen.

2. Communicate early and frequently. Formulate an integration plan for the first 100 days and make sure that the “non-negotiables” are spelled out and are understood. You do not only communicate with employees, but you also need to talk to customers and suppliers.

3. Create a strategic plan for all decision making.

4. Focus on the company’s priorities.

5. Establish a framework for measuring employee performance as early as possible.

6. Assign integration resources.

Remember that the key steps in an acquisition integration are to align strategy, identify culture, dedicate resources, create action plans and execute all these in a smooth yet professional way. There should be a timeline for aligning your strategy and your people in order for the integration to run smoothly or risk confusion among employees, clients, and suppliers. All factors that may affect the transactions should always be looked upon to prevent higher risks.

What Makes A Good Business School?

Business degrees are very popular and there are so many universities and even colleges offering them. The business job market is lucrative hence more and more people are choosing to study business as a good investment for a bright future. But to get the best whether you choose to pursue an MBA or an undergraduate degree, you must start by selecting the best school from where to get your studies from. The right business school will propel you into your business field only if it is founded on the best qualities. What then are these qualities that will make your business school a good and reliable one?

1. Strong leadership – This is a very critical element that determines how good a business school is. The leadership or administration of the school matters; for you to get the best you must be led by an experienced team in academia and business. This way the school is run and set as part of the business community and there is the collective vision to support and balance student, alumni and faculty interests.

2. Competent faculty – For a school to deliver quality education in business, it ought to have talented and qualified researchers and teachers. The faculty should be knowledgeable and experienced so they can effectively teach the aspiring business leaders. An inspiring faculty does not only dwell on theoretical standpoints, but also emphasizes on the application of the theory to real business world issues. Apart from gaining valuable education from such a faculty, you will also have an easy time getting business advice and getting connected to business career opportunities.

3. Appropriate majors and subjects – There are so many areas in business field and you could choose to specialize in a given area or degrees that are more general. A good business school should offer relevant majors and subjects that address the goals you have in pursuing a business degree program. For instance, students who wish to start their own business in the future should go for institutions offering business courses that are solid and allows specialization in entrepreneurship. Think about where you want to be when choosing a school so you start off on the right path.

4. Student support – Making educational decision can be a little tricky and you should therefore get all the support that you might need to make the best. A good business school should offer you guidance from the time you apply for a program all the way to even after graduating. You should be offered necessary help with simple and complex matters so you have the resources you need to be the business professional you aspire to be. Schools with strong alumni networks and career centers are best placed.

5. Good reputation – The overall ranking of the school among business schools can tell you a lot about its quality and worth. Rankings usually rely on important factors such as faculty, programs offered, student services, career support an research. Find out what kind of ratings and reviews are given to the business school just to be sure.