Integration is a crucial phase in M&A. However it has also been proven to be the hardest. A recent study found that M&A firms are 12 to 18% less likely to believe they have the necessary capabilities and capacities for integration than other stages of M&A.
To overcome this hurdle it is essential to communicate clearly the rationale for the acquisition as well as the integration tactics. This ensures that people understand what is expected of them, and demonstrates how M&A can create value for their organization.
It is also important to follow the best practices that are tailored to the deal’s objectives. For instance, using the same team of professionals who performed due diligence for the M&A for the post-merger integration is a way to ensure continuity, eliminating duplication of efforts and reducing the time.
Another issue is the need to maintain momentum throughout http://www.virtualdataroomservices.info/ the integration process. It is essential that the team of integration join the two companies without sacrificing growth. In addition, it requires a strong understanding of the M&A company’s operations so that the team involved in the integration can make decisions with the least impact to day-to-day activities.
It is also important to have a strong structure for governance of integration to monitor and capture synergies. This includes establishing an M&A leadership group (which should comprise representatives from both organisations) and then developing an integration plan and establishing clear lines of accountability. M&As that implement these integration best practices can provide up to 6 to 12 percent more total returns for shareholders than those who do not.