How to Overcome the Challenges of Merger Acquisition Integration
Integration is a critical stage in M&A. It has also been proven to be the most challenging. A recent survey revealed that M&A firms are between 12 and 18 percent less likely to believe that they have the capabilities and capabilities for integration than any other stage of M&A.
The most effective way to overcome this issue is clear communication about the rationale behind the deal and integration tactics. This will ensure that everyone knows what is expected from them and how the M&A can benefit the company.
It is also important to implement best practices that are specifically tailored to the objectives of the deal. For instance, using the same personnel who conducted due diligence for the M&A for the post-merger integration assures continuity, eliminating duplication of effort and saving time.
Another issue is maintaining momentum during the process of integration. It is crucial that the team integrating the companies without sacrificing growth. This requires that the team has a thorough understanding of the M&A firm’s operations, so they can make decisions that have the least impact on day-to-day operations.
It is also important to establish a solid structure for http://www.virtualdataroomservices.info governance of integration to monitor and recognize synergies. This includes establishing the M&A leadership group (which includes representatives from both organisations) and then developing an integration plan and providing clear lines of accountability. M&As that follow these integration best practices can produce up to 6 to 12 percent more in total returns for shareholders than those that do not.