Integration is a critical stage in M&A. However it has also been proven to be one of the most difficult. In fact, a survey conducted recently found that M&A companies are between 12 and 18 percent less likely to feel that they have the appropriate capabilities and capabilities to integrate 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 methods of integration. This helps ensure that people know what is expected of them, and demonstrates how the M&A will create value for their company.
Additionally, it is crucial to follow the best practices that are suited to the deal objectives. It is crucial to employ the same people who did the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents duplication of effort.
Another challenge is maintaining momentum during the process of integration. It is essential that the team working on integration unite the companies without sacrificing growth. This demands that the integration team is fully aware of the M&A firm’s operations, so they can make decisions that have the least impact on daily operations.
A strong governance structure is also necessary to track synergies and identify synergies. This includes setting up the M&A leadership group (which includes representatives from both organizations), creating and developing an integration plan http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy and providing clear lines of accountability. M&As that implement these best practices for integration could deliver up to 6 to 12 percent more total returns for shareholders than those that don’t.