During M&A integration, it is one of the most crucial phases. However it has also proved to be the hardest. In fact, a recent survey discovered that M&A companies are between 12 and 18 percent less likely that they have the http://www.virtualdataroomservices.info/ necessary capacities and capabilities for integration than for any other stage of M&A.
A key to overcoming this issue is clear communication of the rationale behind the deal and integration tactics. This will ensure that everyone understands what is expected of them and how the M&A will benefit their company.
It is also crucial to employ the best practices tailored to the specific goals of the deal. It is important to use the same personnel who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and helps avoid duplication of effort.
Another issue is maintaining momentum throughout the process of integration. The team responsible for integration must ensure that growth isn’t sacrificed in the process of integrating the companies. This demands that the integration team has a thorough understanding of the M&A firm’s operations so that they can make decisions that have the least impact on day-to-day operations.
It is also necessary to have a strong integration governance structure that can track and identify synergies. This means forming an M&A leadership team (which should include both the organizations as representatives), creating and the implementation of a plan for integration, and providing an explicit accountability. M&As that implement these best practices for integration can provide up to 6 to 12 percent higher total returns for shareholders than those who do not.