Integration is a crucial phase in M&A. However it has also proved to be the most difficult. A recent survey found that M&A firms are 12 to 18 percent less likely to believe that they have the capabilities and capabilities for integration than any other stage of M&A.
To overcome this issue it is essential to clearly communicate the reason for the deal and the techniques for integration. This ensures that people understand what is expected of them, and shows how the M&A will drive value for the company.
It is equally important to use best practice tailored to the specific goals of the deal. It is important to use the same personnel who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and avoids the duplication of efforts.
Another challenge is maintaining momentum throughout the process of integration. The team in charge of integration must ensure that growth is not sacrificed when merging the two companies. This demands that the integration team has a thorough understanding of the M&A firm’s operations, so they can make decisions that have the least impact on day-today operations.
It is also crucial to have a strong integration governance structure to track and capture synergies. This means establishing the M&A leadership group (which should comprise representatives from both organizations) and then developing an integration plan and establishing clear lines of accountability. M&As that incorporate these integration best practices deliver as much http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising as 6-12 percentage points higher total returns to shareholders than those that don’t.
