Inadequate post-deal integration procedures are the number one reason for M&A failure. DealRoom assists companies avoid common mistakes and increase the value of their M&A deals by assisting in the post-acquisition integration process.
The emphasis, sequence, and pace of post-deal integration should be specifically tailored to reflect the goals and the sources of value that prompted the transaction in the first place. It may sound obvious, but we see many businesses fall back on off-the shelf plans and generic best practices that emphasize process and fail to consider the unique aspects of their deal.
One company, for instance, recognized that R&D could provide a substantial amount of value. However, as the product that was the main focus of the acquired company was in development, it chose to focus on growth instead, leveraging the capabilities and sales channels of the new company in a strategic fashion. They would then reconsider their decision to fully integrate R&D in the long term.
One of the principal practices in successful mergers is to provide line managers with responsibility for capturing revenue and cost synergies. This ensures that the line leaders have http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ the appropriate motivations and responsibilities to ensure tactical execution, and it helps to monitor progress against goals in real time. We’ve seen that it is beneficial to set up the capability to hold short, iterative meetings, with specific dates and goals, so that teams can realign their goals and focus as they move through PMI cycles.