Senior Management should often consider acquiring other

organizations for developing a set of capabilities & processes.

Acquiring companies need to begin by asking :

I have just paid a large sum to acquire an organization but what have
got in return.
“Have I only got resources in abundance such as people, systems, technology etc.
Or was the organization specifically valuable for its very effective processes and
decision-making criteria.
These unique processes and decision-making criteria enabled them to launch
novel products and services in a timely manner.
Their customers are happy with the products/services and are hard to switch
loyalty.”

First and foremost what is important is realization on part of the

acquiring company. It should be clear that the acquired company has
some unique ways of working & this is what makes it valuable.
Second is adopting these methods, this though may not be an easy
task.

a) The acquired/bought Organizations employees are going to be

aware of the superior ways of working of the Organization and
may not be too receptive if some of the methods of the acquiring
company (Parent company) are retained.
 The issue may arise if:
The acquiring company/parent company may want to show parity
to its original team that some of its processes were also effective
and have been retained.

b) If majority of the processes of the acquired organization(new

company) are retained, it is going to be a very big change for the
employees of the acquiring company/parent company to accept.

 They may see it as clear dominance of the acquired organization.

 To learn suddenly newer of ways of operating is not going to be

easy for them and may make them unhappy and resentful
towards the acquired organization & their own management.

It is also true the acquisition decision is made by

financial analysts & they have an eye for assets & their
worth.
They may determine the acquiring company’s worth for
its assets such as brand, property owned etc. and may
overlook the excellent processes it has deployed that
make it successful in the first place.