How Mergers Create Process Redundancies and How to Fix Them
Mergers are meant to create value, but they often introduce unnecessary complexity. When two organizations combine, they bring overlapping functions, conflicting systems, and duplicate processes. This redundancy slows down operations, increases costs, and reduces efficiency gains private equity firms expect.
Where Redundancies Occur
Process redundancies show up in every area of the business:
Finance and Accounting – Two sets of financial reporting systems, multiple invoicing processes, and conflicting expense policies create inefficiencies.
Procurement and Supply Chain – Different supplier contracts, separate procurement teams, and varied approval workflows add unnecessary costs.
Technology Systems – Legacy systems that don’t integrate well lead to extra workarounds and manual data entry.
HR and Talent Management – Two payroll systems, conflicting policies, and different benefits structures slow down employee operations.
Without a structured approach, these inefficiencies persist, cutting into profitability and operational effectiveness.
How to Fix Process Redundancies
Assess the Overlap: Start with a process audit. Identify where workflows, roles, and systems duplicate efforts. Map out how work moves through the organization post-merger.
Standardize and Consolidate: Choose one process where multiple exist. Standardizing finance, procurement, and HR operations saves time and reduces friction across teams.
Integrate Systems: Merged companies often run parallel technology platforms. Eliminating redundant systems and centralizing data improves decision-making and reduces errors.
Align People and Roles: Redundant functions create unnecessary positions. Realigning teams, consolidating reporting structures, and setting clear responsibilities help streamline operations.
Implement Continuous Improvements: Mergers create complexity, but an ongoing review process prevents inefficiencies from becoming permanent. Setting regular checkpoints ensures that improvements stick.
For private equity-backed firms, removing process redundancies is key to maximizing investment value. The sooner inefficiencies are addressed, the faster the business delivers expected returns.
Are your post-merger operations running as efficiently as they should?
Infinity Consulting Group Solutions helps PE-backed firms streamline operations and accelerate value creation. Contact us today to learn how.
