These best-practice insights on how to smooth the path to a successful board merger should help avoid problems and pitfalls of poor integration.
Image: Andrey_Popov / Shutterstock
1. Share information
All board members—and not just senior directors or the larger of the two companies—need a clear understanding of the reasons for the merger. Advisory experts and board members say poor management of this essential step can be a big contributor to a failed merger.
Ideally, the chief executive and the chairman should present the merger rationale together in an open, transparent way, giving a coherent outline of the benefits the deal should bring such as improved performance, growth and synergies.
Describing how the merger fits in with the overall strategy and the implementation plan is essential. It is also worth
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda