Quote:
Originally Posted by Frank Messina
The "everything stays the same" chant is the Novocain they inject to keep everyone calm while they figure out where to start chopping. They have to recoup their purchase price and most times the acquiring company isn't looking to do that over the next 20 years. People will be shed and products that don't match the new corporate model will be cut as well. That's just the reality. Just look at Dunlop/Goodyear.
Frank
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Fair enough - especially when it comes to back end or shared services. Do you really need two IT departments? Can HR and/or Accounting for Hoosier become a 'satellite' location with core services delivered from Continental HQ? Does Hoosier need a Treasury or Accounts Receivable department when it can tap into Continental's?
Just some examples, but the acquiring companies that are successful evaluate these and other services to see where 'synergies' can be found and costs eliminated. If they do it well they won't negatively impact customer services - but that requires focus, commitment and dedicated resources. Do it poorly and you have a disaster.