In M&A integration, it is one of the most crucial phases. However it has also proved to be the most difficult. In fact, a survey conducted recently discovered that M&A companies are 12 to 18 percent less likely to think that they have the necessary capabilities and capabilities to integrate than other http://www.virtualdataroomservices.info/what-is-deal-flow-management/ stages of M&A.
The most effective way to overcome this issue is clear communication about the rationale for the deal and integration tactics. This helps ensure that people know what is expected of them, and also demonstrates how the M&A can create value for the company.
It is also important to employ the best practices tailored to the deal’s 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 helps avoid duplicate efforts.
Another challenge is keeping momentum throughout the process of integration. It is essential that the team of integration join the companies without sacrificing growth. Additionally, this requires a solid understanding of the M&A business’s operations to ensure that the team can make decisions that have the least impact on day-to-day operations.
It is also essential to have a strong integration governance structure to track and identify synergies. This includes establishing the M&A leadership group (which should include representatives from both organisations), creating and developing an integration plan and providing clear lines of accountability. M&As that follow the best practices of integration can deliver up to 6 to 12 percent more in total returns for shareholders than those that do not.