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Post-merger indigestion

Incomplete integrations can be hazardous to your company's health

Post-merger indigestion (n.): an insidious malady common among serial acquirers that fail to fully absorb their acquisitions. Initial symptoms include rising costs, unclear reporting relationships, technological inefficiency and marketplace confusion. The sufferer experiences shrinking margins and lower revenue gains with each additional transaction. If left untreated, the syndrome can lead to a spectacular loss of profitability and revenue, usually after the patient makes one acquisition too many. The downward spiral isn't inevitable, though. As an executive, you can help your company escape it in the same way you'd address any other ongoing business challenge: by taking the issue seriously, evaluating your situation and taking steps to fix current problems and minimize future ones.

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