Integration is an essential stage in M&A. However it also has proven to be the most difficult. In fact, a survey conducted recently discovered that M&A companies are 12 to 18 percent less likely to feel that they have the proper capabilities and capabilities to integrate than for any other stage of M&A.
To overcome this challenge it is essential to communicate clearly the rationale of the deal as well as strategies for integration. This will ensure that everyone is aware of what they are expected to do and how M&A can benefit their business.
Furthermore, it is essential to employ the best practices that are suited to the specific goals of the deal. For instance, using the same team of professionals who performed due diligence for the M&A for the post-merger integration ensures continuity, avoiding duplicate efforts and reducing the time.
Another issue is keeping momentum throughout the process of integration. The integration team must ensure that growth isn’t sacrificed in the process of integrating the two companies. Additionally, this requires a deep understanding of the M&A business’s operations to ensure that the team in charge of integration can make decisions with the least impact to the day-to-day tasks.
A strong governance structure is essential to monitor and capture synergies. This means forming an M&A leadership team (which should include both organizations’ representatives), creating and the implementation of a plan for integration, and establishing clear accountability. M&As that incorporate these integration best practices will yield as high as 6 to 12 percentage points more in http://www.virtualdataroomservices.info total returns to shareholders than those that don’t.