In the acquisition process, what should organizations ensure about their standards?

In the acquisition process, it is crucial for organizations to ensure that their standards align with those of the acquired party to facilitate a smooth integration. This alignment fosters compatibility in operations, risk management practices, and compliance with regulations. By ensuring that their standards are at least as good as those of the acquired entity, organizations can avoid potential security gaps and maintain consistent quality across the merged operations or services.

Maintaining standards that are on par with or superior to those of the acquired entity also helps in managing risks effectively. It ensures that both organizations adhere to similar protocols which can significantly simplify decision-making, training, and operational procedures post-acquisition.

Industry benchmarks provide a useful reference point, but simply aligning with these benchmarks alone may not capture the specific needs or standards relevant to both organizations involved in the acquisition. Therefore, while having standards that are as good as those of the acquired company is essential for a successful merger or acquisition, simply adhering to industry benchmarks or being more lenient would not sufficiently address the unique challenges that come with integration.