Buy-and-build strategy and value creation following acquisitions

Your organization is growing through mergers and acquisitions, which are an explicit part of your strategy. Identifying and acquiring suitable companies often receives a great deal of attention and is typically handled professionally. The real challenge, however, arises after the transaction. It is precisely during the phase when value must be realized that the complexity often proves to be greater than initially estimated.

In practice, you’ll find that synergy benefits are calculated optimistically, while integration risks are underestimated. Differences in culture, leadership, processes, systems, and decision-making cause delays and friction. 

At the same time, management’s attention quickly shifts back to the next acquisition, resulting in integration not being given sufficient priority. The result is that the intended benefits are realized only partially—or not at all.

This situation can lead to:

• Disappointing financial performance following an acquisition
• Insufficient realization of economies of scale and synergies
• Uncertainty and resistance among employees of both the acquiring company and the acquired organization
• Loss of key employees and knowledge
• Fragmented processes, systems, and management

In this context, you need an approach that explicitly focuses on “build” and not just on “buy.” You’ll benefit from support in designing and implementing a cohesive integration plan that goes beyond structures and organizational charts. The focus is on achieving strategic objectives, connecting people, and creating clarity regarding roles, responsibilities, and priorities.

Attention is paid to both the “hard” and “soft” aspects of integration: strategy, governance, and processes, as well as leadership, culture, and collaboration. By addressing these elements holistically, you increase the likelihood that integration will actually lead to value creation rather than value loss.

In this situation, a consistent approach helps to establish focus, define priorities, and
actually realize value. In this way, buy-and-build becomes not a risk, but a manageable and
repeatable growth model.