During M&A, integration is one of the most crucial steps. However it also has proven to be the hardest. A recent survey revealed that M&A companies are 12 to 18 percent less likely to believe that they have the right capabilities and capacities to integrate than other stages of M&A.
To overcome this issue it is essential to communicate clearly the rationale for the acquisition and the techniques for integration. This will ensure that everyone is aware of what is expected of them and how the M&A can bring value to the company.
It is also important to implement best practices that are specific to the goals of the deal. For example, using the same personnel who conducted due diligence for the M&A for the post-merger integration will ensure continuity, avoiding http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ duplicate effort and also reducing time.
Another issue is maintaining momentum throughout the process of integration. It is essential that the team of integration join the two companies without compromising growth. Moreover, this requires a thorough understanding of the M&A company’s operations so that the integration team can make decisions with the least impact on daily activities.
It is also important to have a strong structure for governance of integration to monitor and capture synergies. This includes setting up the M&A leadership group (which includes representatives from both organizations), creating and developing an integration plan and establishing clear lines of accountability. M&As that incorporate these integration best practices will yield as high as 6-12 percentage points more in total returns to shareholders than those that don’t.