How to Overcome the Challenges of Merger Acquisition Integration

Integration is a critical stage in M&A. However it also has proven to be one of the most difficult. A recent study found that M&A firms are between 12 and 18 percent less likely to think they have the necessary capabilities and capacities to integrate than any other stage of M&A.

To overcome this issue It is crucial to clearly communicate the reason for the deal and the methods of integration. This will ensure that everyone knows what is expected from them and how M&A can benefit the company.

Additionally, it is crucial to employ the best practices that are suited to the specific goals of the deal. For instance, using the same individuals who conducted due diligence for the M&A for the post-merger integration is a way to ensure continuity, eliminating duplication of efforts and reducing time.

Another challenge is maintaining momentum during the process of integration. The team responsible for integration must ensure that growth isn’t lost in the process of integrating the companies. This requires that the integration team is fully aware of the M&A company’s operational processes, so they can make decisions that have the least impact on day-to-day operations.

It is also necessary to have a strong system of governance for integration to track and capture synergies. This includes establishing the M&A leadership http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising/ group (which includes representatives from both organizations) as well as establishing and the implementation of an integration plan, and establishing clear lines of accountability. M&As that incorporate these integration best practices yield as much as 6-12 percentage points higher total returns to shareholders than those that do not.