Today, acquisition of manpower, technology and market share create the biggest challenges facing contemporary fast growth companies. As a result, mergers and acquisitions have become essential tools in effectively competing in the contemporary "warp speed" growth environment. "Companies have realized that mergers and acquisitions are clearly the speediest and most substantive way to affect corporate growth", claims Mark Clemente, co-author of the book Winning at Mergers and Acquisitions. "The Wall Street Journal" reported in December, 1999 that the value of mergers announced during the year was a record $3 trillion. In the United States, M&A activity has translated to more than one merger an hour for over the past 24 months.

Sobering Facts
M&A as a business strategy presents corporate leadership with a host of challenges and risks.

			Of the 700 of the most expensive M&A deals completed between 1996 and 1998, 53% reported reduced shareholder value (KPMG International) following the merger.
			33% of mergers are later dismantled.
			40% of mergers are viewed as unsuccessful by the acquiring company management.
			A 15-20% drop in productivity and profits in the first 6 months typically follows a merger.
			Even in small mergers, more than 10,000 decisions will be made during the acquisition process.

M&A "Mine Fields"
Absence of an effective integration process is the primary factor in merger failures. Executives and their collaborators understand the strategic advantages to be gained through merger and acquisition. They understand and generally succeed with the due diligence process. Yet, they fail to create an approach to evaluate the cultural differences and to leverage strengths using effective integration tools. The strategic objectives for an acquisition may be derailed when senior management does not achieve alignment with regard to vision, mission, and strategies. Resulting loss of key talent can further erode the effectiveness of leadership and acquisition integration.

Beating the Odds
Plan, communicate and focus on culture: A carefully designed Integration Process designed to provide a "roadmap" and a structure to guide the integration is essential to ensure that the business objectives are realized and to ensure the long-term success of the integration. Guidelines and Tools are needed to provide the resources necessary for the acquiring company to effectively plan, communicate and attend to the people and culture issues.

1.		Create an Acquisition Integration Team chartered to plan and monitor the entire process.
2.		Evaluate the cultures of the merging entities to identify strengths, areas for development, potential "hot spots" and major leveraging opportunities.
3.		Design and implement a Communication Plan that will keep all employees and other stakeholders aware of integration progress and issues.
4.		Implement a plan to evaluate employee and stakeholder attitudes about the integration process and to seek feedback at periodic intervals throughout the acquisition integration process.
5.		Acquire or develop appropriate tools to support strategic planning, leadership development, consolidation management, employee retention, conflict management, process improvement, etc.