Critical success factors in post merger integration with emphasis on managing the process

M.Comm.After the merger, it is up to functional managers to deliver the benefits of synergy and economies of scale promised by external consultants and top management. These managers are however faced with a new set of problems, for which they are not equipped. It is in this critical phase that line managers feel that little support is received from top management and external consultants. The consequence of this is the relative lack of success achieved in mergers as discussed in the previous section. Additional support for this point of view is available in a study done by Ravenscraft and Scherer (1989: 101-116). They found that profitability of target firms, on average, actually declines after an acquisition, suggesting that implementation difficulties probably play a critical role in determining the eventual performance of an acquisition. The ultimate responsibility is still vested in top management. It is their responsibility to manage the post-merger integration process. Considering the high incidence of merger integration failure, there is a need for an analysis of the situation. From a review of the literature it also obvious that very little focus has been placed on the integration phase of the merger. Even less is known about the management techniques available to manage this process more effectively. Despite the importance of this process and shortage of skill in this area little is known about the tools and techniques available for use in the process of managing integration. According to Datta (1991: 281-297), research on related issues such as organisational fit is limited, fragmented and anecdotal. Until management techniques and guidelines for managing the crucial merger integration phase are formalised, this problem will remain