In M&A, integration is among the most crucial stages. However, it has also proven to be the hardest. In fact, a recent study discovered that M&A companies are 12 to 18 percent less likely to believe that they have the appropriate capacities and capabilities for integration than any other stage of M&A.
To overcome this issue, it is important to clearly communicate the reason for the acquisition and the strategies for integration. This will ensure that everyone knows what they are expected to do and how M&A can benefit their organization.
It is equally important to employ the best practices tailored to the objectives of the deal. For instance, using the same team of professionals who performed due diligence for the M&A for the post-merger integration assures continuity, eliminating duplication of efforts and reducing time.
Another issue is maintaining momentum during the process of integration. The team http://www.virtualdataroomservices.info/what-is-deal-flow-management/ that is integrating must ensure that growth is not sacrificed in the process of integrating the two companies. This demands that the integration team is well-aware of the M&A firm’s operations, so they can make decisions that have the least impact on day-today operations.
A solid governance structure is also needed to capture synergies and track them. This includes establishing the M&A leadership group (which includes representatives from both organisations) in addition to establishing and creating an integration strategy, and providing clear lines of accountability. M&As that follow these integration best practices can provide up to 6 to 12 percent more in total returns for shareholders than those who do not.
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