Integration is a crucial stage in M&A. However, it has also proven to be the hardest. In fact, a recent survey discovered that M&A companies are between 12 and 18 percent less likely that they have the proper capabilities and capabilities to integrate than for any other stage of M&A.
The key to overcoming this obstacle is clear communication about the rationale for the deal and the integration tactics. This will ensure that everyone knows what is expected of them and how M&A can bring value to the company.
It is also important to use best practice tailored to the goals of the deal. It is essential to utilize the same individuals who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents duplicate efforts.
Another challenge is keeping momentum during the process of integration. It http://www.virtualdataroomservices.info/what-is-deal-flow-management/ is essential that the team working on integration unite the two companies without sacrificing growth. Furthermore, this requires a strong understanding of the M&A company’s operations, so that the team in charge of integration can make decisions with the least impact on daily activities.
A solid governance structure is also needed to monitor and capture synergies. This includes establishing an M&A leadership group (which includes representatives from both organizations) and then the implementation of an integration plan, and providing clear lines of accountability. M&As that incorporate these integration best practices deliver as much as 6-12 percentage points higher returns to shareholders than those that do not.
