Why Integration Matters
Studies consistently show that 50-70% of acquisitions fail to deliver expected value. The failure mode isn't usually bad deal logic—it's poor integration. We've supported numerous acquisitions across the GASJ portfolio and have developed a playbook that works.
Before Close: The Foundation
Integration planning starts before the deal closes. Key pre-close activities:
Integration Lead: Assign a dedicated person to own integration. This is not a part-time job. For acquisitions over $50M, consider hiring externally.
Day 1 Checklist: Legal, HR, IT, Finance—each function needs a day 1 plan. Access provisioning, communication, reporting line clarity.
Retention Plan: Identify critical employees. Have retention packages ready for day 1. Losing key people in the first 90 days is often fatal.
Customer Communication: Draft messages for customers of both companies. Proactive communication prevents speculation.
Days 1-30: Stabilize
The first month is about stability, not optimization. Objectives:
Preserve momentum: Don't disrupt existing commitments. Deals in pipeline, features in development, customer promises—honor them all.
Establish communication: Weekly all-hands, daily leadership syncs, clear escalation paths. Overcommunicate everything.
Quick wins: Find 2-3 visible improvements you can make immediately. New equipment, better coffee, faster expense reimbursement. Signal positive change.
Assess reality: Your diligence was based on limited information. Now you have full access. Verify assumptions about technology, team, customers.
Days 31-60: Understand
The second month is about deep understanding before making changes.
Technical Assessment: Map systems, dependencies, technical debt. Understand before restructuring.
Team Mapping: Individual meetings with every employee. Understand skills, aspirations, concerns. Identify flight risks and hidden talent.
Customer Listening: Talk to 10-15 customers. Understand their relationship with the acquired company. What do they value? What concerns them about the acquisition?
Cultural Differences: Every company has its own culture. Document differences without judgment. Successful integration respects both cultures.
Days 61-100: Integrate
With understanding established, begin careful integration.
Systems Integration: Pick a path: migrate acquired systems to parent, vice versa, or build new shared systems. There's no universal answer, but indecision is costly.
Organizational Clarity: Finalize reporting structures. It's better to be clear than perfect. Ambiguity erodes trust.
Go-to-Market Alignment: How will sales teams work together? Will products be sold separately, bundled, or merged? Make decisions and communicate them.
Cultural Integration: Start shared rituals. Combined all-hands, cross-team projects, shared celebrations. Culture is built through shared experience.
Common Mistakes
Moving too fast: Eager acquirers often destroy value by forcing rapid integration. Give the acquisition time to prove its thesis before restructuring.
Moving too slow: Prolonged ambiguity is equally damaging. Make decisions. You can course-correct later.
Ignoring cultural fit: Technical integration without cultural integration creates silos and resentment.
Focusing only on synergies: Cost synergies are visible. Revenue synergies are harder. The best acquisitions create new opportunities neither company could access alone.
Neglecting your own company: Integration absorbs leadership attention. Don't let your core business suffer.
Resources We Provide
For portfolio companies doing acquisitions, GASJ provides:
Acquisitions are one of the highest-risk, highest-reward activities in business. With proper integration, they can transform a company. Without it, they can destroy value. We're here to help get it right.