You’re planning to execute an integration of workforces — making two insurance companies one. The endeavor you’re about to undertake will likely be highly rewarding down the line but could potentially be a short-term knot of challenges and frustrations.
How hard can such a goal be to implement? How disruptive will your action plan be day-to-day and month-to-month as the process unrolls?
That all depends on the acquisition leadership you and your team display before, during, and after the merger process and corporate integration. Do you have the charisma, communication skills, and leadership orientation to turn two organizations into one new company?
Here’s what that’s likely to entail.
The Essentials of Seamless Acquisition Strategy
Successful acquisition leadership starts from the top.
Number one on any list of must-haves for seamless M&A leadership is a CEO team committed to the effort and realistic in its expectations. It’s imperative your people have the hearts and cooperation of the combined workforce, and you’ll only get there with transparency in your communication to all internal audiences and critical external partners, allies, customers, and other stakeholders.
While efforts will start with you and your trusted team, that’s not enough. You must have everyone on board. That means encouraging open two-way communication even when it involves messages you don’t want to receive. You must also be the main motivator and cheerleader in prodding others to do their part in moving the company forward toward full integration.
Laying the Groundwork for Integration
You proposed and began executing this M&A for a reason. Do you remember what it was? Of course you do, but it can be easy to lose focus on the end goal in the face of the various obstacles, complexities, and hassles you’re likely to face in the process.
Keep moving forward despite all that you are — or soon will be — up against.
The Bedrock of Business Growth
Joining forces via an M&A has many potential benefits. Perhaps you want to diversify your insurance product line, increase your footprint while boosting market share, and become a more efficient entity.
Whatever drove you forward, remember that the end result is a stronger, healthier, more dynamic, and technologically-driven insurance company. Keep your eye on the prize.
Crafting a Comprehensive Integration Roadmap
How long does an acquisition take? When will full integration be finalized? If you’ve completed your essential homework, you have a rational timeline. You have a good idea of how many months — or even years — full integration will take.
Stay flexible. Don’t get caught like a deer in headlights by unforeseen obstacles and detours in the road. You have created an integration roadmap that can survive a few bumps and washed-out roads.
Key Pillars of Successful Acquisition Planning
Acquisition integration success is no accident. It takes courageous, creative, and farsighted M&A leadership. Here are some of the most important facets of the actions in front of you.
Due Diligence
What are you up against? Address the challenges, roadblocks, and risks your companies will be up against as you take action. Carefully review the two corporate cultures for mismatch. Unveil the financial picture of both organizations both separately and together. Understand dueling processes and procedures and identify where clashes might occur.
Refinement of Acquisition Strategy
With what you learn during your due diligence, begin to formulate strategies for a seamless M&A, or one with as few hiccups and as little disruption and morale deflation as possible. From the start, ensure your customers will be able to easily access your brand and products in familiar methods, whether that is through social media, or another channel. Brand loyalty is too important to lose in this process.
IT Integration
Today’s corporation runs in its own digital universe. It’s critical you recognize the disparities and get full digital alignment. You can’t bridge the various divides between the two organizations until you fully achieve IT integration. This will take time and talent.
Workforce Redundancy Decisions
In achieving acquisition and integration success, you’ll marry two companies and two workforces. That means the potential of at least doubling headcount in your sales and marketing teams, legal and regulatory, accounting and finance, and other departments.
Can you afford that sudden workforce increase? Job cuts, if they must take place, will adversely affect company morale — there’s no avoiding that fact. Remember to stay transparent through the process and hold regular meetings so employees understand the process.
Cornerstones of Effective Integration Management
You have two teams to keep in mind during the transition period. There’s the leadership team from both organizations implementing the acquisition and the larger team of everyone in the new organization. Know everyone’s role, and let each do their job.
Assembling an Adept Integration Team
Drafting a trustworthy and talented team to achieve acquisition and integration success is paramount. Start with those who have already proven their abilities, and let them choose their own trusted team members.
Within both organizations, look for smart and collaborative managers and then regularly get updates and progress reports.
Establishing Crystal-Clear Communication Channels
How do you communicate with your own team? How effective is it? Which internal communication channels work, and which are largely ignored?
Have this same conversation with your counterpart in the other organization. Survey your combined audiences to see what they know about the progress of the merger and where they feel they’ve been left in the dark.
Fortunately, internal communication is a real-time pursuit that can be quickly revised or refined based on results.
Navigating the Post-Acquisition Landscape
How are you doing? Your regular internal surveys will help you establish your benchmarks and improve upon them. Determine your shortcomings and strategize improvements.
Cultural Harmony and Visual Synchronization
All this really means is that you’ll listen to your combined workforce and read the metrics that show success or room for improvement.
Learn about common acquisition concerns and how to address them. In order to get honest answers from your stakeholders, they must feel safe in providing their frank insights and suggestions for improvements. Make sure that integrated teams work together on a regular basis so you can assess the cultural fit. Get the entire team together for annual or quarterly meetings and holiday or seasonal parties.
Involve your human resources department since your workforce might feel more secure in bringing problems and obstacles to their attention rather than to immediate supervisors.
A seamless M&A is your goal, and the full cooperation and participation of your workforce and your acquisition leadership is what can get you there.
The Strategic Role of Technology in Integration Success
Technology will be a critical component in your plans, from your search for an M&A partner to full and successful integration. Software solutions exist to help identify acquisition targets, support your due diligence, and offer cybersecurity while electronic systems merge. You can also access virtual meeting rooms for the many sensitive discussions you’ll have with your team along the way.
Even artificial intelligence can be put to work to enhance the changeover. So get your trusted IT partners involved from the very beginning for the smoothest transition the cyber world has ever seen.
Learn More About the Acquisition Process
Are you thinking about being acquired by another company in the insurance industry? As the largest and most respected personal lines insurance distributor in the United States, Confie is an ideal partner.
What we offer is a national footprint, impressive brand recognition, and collaboration with most of the leading insurance carriers. That means we — and, potentially, you — represent the products that your customers want.
We invite you to contact us online or call us at 714-252-2500 to learn how our leadership in acquisitions can grow your company. At Confie, we’re eager to begin a collaborative and productive relationship.
