Integration is a crucial stage in M&A. However it has also proved to be one of the most difficult. A recent study revealed that M&A firms are 12 to 18 percent less likely they have the necessary capabilities and capabilities for integration than any other stage of M&A.
To overcome this hurdle it is essential to clearly explain the reasons for the acquisition and the techniques for integration. This will ensure that everyone understands what is expected of them, and shows how the M&A can create value for the company.
It is also important to follow the best practices that are tailored to the specific goals of the deal. For example, using the same team http://www.virtualdataroomservices.info/ of professionals who performed due diligence for the M&A for the post-merger integration is a way to ensure continuity, avoiding duplicate efforts and reducing time.
Another issue is maintaining momentum during the process of integration. The team responsible for integration must ensure that growth is not sacrificed when integrating the two companies. This requires that the team has a thorough understanding of the M&A company’s operational processes, so they can make decisions that have the least impact on day-today operations.
A strong governance structure is also needed to track and capture synergies. This includes setting up the M&A leadership group (which includes representatives from both organizations) in addition to establishing and the implementation of an integration plan, and establishing clear lines of accountability. M&As that incorporate these integration best practices yield as much as 6 to 12 percentage points more in total returns to shareholders than those that don’t.
