After the Merger [antikvár]

Foreword A record number of mergers are raaking headlines and prompting ques-tions about which will ultimately succeed and which will fail. Although integration is not without stress for an organization and employees, mergers can succeed if companies develop and adhere to a highly disci-plined strategy of adding value on day one while implementing a blue-print for future growth. Since 1992, Tyco International has acquired and integrated more than 110 companies. We gauged these and other potential acquisitions on their ability to expand our core businesses, making sure that their growth potential would be long-term and sustainable. We have learned that speed is the driver of successful integration, as authors Max M Habeck, Fritz Kröger and Michael R Trám accurately point out. Once discussions have been initiated, we begin making plans for implementation during due diligence. Between the merger announcement and completion dates, we have identified the leaders and developed a one-, two- and three-year plan with them. At Tyco, we implement the short-term integration plan within weeks, which eliminates uncertainties and shifts the focus to achieving growth for the merged companies. While we justify our acquisitions using the cost savings that can be achieved - and achieved during the first few weeks of integration - we are talking about and seeking ways to generate internál growth from the time we begin due diligence. The worst mistake is to leave employees without a sense of the goals and objectives of the merger, so communication is vitai. Employee understanding and buy-in are particularly necessary to achieve the early-on reductions as well as growth. You can't just eliminate costs without implementing appropriate incentives and direction for growing the company. Likewise, you can't just provide incentives for growth if you're not going to take out the costs. They go hand in hand for successful integration and shareholder value. Merging companies often get caught up in the details. They must be willing to accept getting 80 percent of it right because integration must wm