Joining Forces: Making One Plus One Equal Three in Mergers, Acquisitions, and Alliances

Chapter III. Strategic and Operational Preparation

Some observers liken organizational combinations to organ transplant surgery. In the latter, the process must be well thought out and planned, a well-qualified donor must be found, and the surgical team and patient need to be prepped prior to the operation to allow for rapid execution and to minimize the likelihood of rejection. So too, planning and preparation are integral to success when companies join forces.

Preparation in a combination covers the five areas that we emphasize in M&A: strategic, organizational, cultural, psychological, and careful attention to transition management. The strategic challenges involve key analyses that clarify and bring into focus the sources of synergy in a combination—both ...