Poor post-deal integration practices are the number one reason for M&A failure. DealRoom helps companies avoid www.virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ common pitfalls and maximize the value of their M&A transactions through the post-acquisition process.
The focus, the sequencing, the pace and the focus of post-deal integration should be tailored to the objectives and sources that justified the deal. It may sound obvious however we see a lot of businesses fall back on off-the shelf plans and general best practices that emphasize process and neglect the specific elements of their deal.
One company, for instance acknowledged that R&D was a primary source of value in their acquisition, but because the core product of the acquired firm was still in development, they decided to skip the cost synergies, and instead focus on growth by making use of the new company’s sales channels and capabilities in a more strategic manner. They would then reconsider their decision to fully integrate R&D in the future.
Another crucial practice that is common to successful larger mergers is to hand the responsibility of capturing cost as well as revenue synergies to the line managers in the acquired company. That ensures the line managers are given the right motivations and responsibilities to ensure the tactical execution of their plans, and it also makes it easier to monitor progress against goals in real-time. We’ve observed that it’s beneficial to set up the capability for short meetings that are iterative, with clear dates and goals, so that teams can align their goals and efforts as they progress through PMI cycles.
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