Integration is an essential stage in M&A. It also has proven to be one of the most difficult. In fact, a recent study discovered that M&A companies are between 12 and 18 percent less likely to believe that they have the appropriate capabilities and capabilities to integrate than other stages of M&A.
A key to overcoming this challenge is clear communication of the rationale for the deal and integration strategies. This helps ensure that people know what is expected of them, and also demonstrates how the M&A can create value for the company.
It is equally important to employ the best practices tailored to the goals of the deal. It is essential to utilize the same personnel who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents repetition of efforts.
Another issue is keeping momentum throughout the process of integration. The team responsible for integration must ensure that growth isn’t lost in the process of merging the two companies. This requires that the team has a deep understanding of the M&A company’s operational processes, so they can make decisions that have minimal impact on day-to-day operations.
A strong governance structure is also required to track synergies and identify synergies. This includes establishing an M&A leadership group (which should include representatives from both organizations) and then creating an integration strategy, and establishing clear https://virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ lines of accountability. M&As that integrate these best practices will yield as high as 6 to 12 percentage points higher total returns to shareholders than those that don’t.