How to Overcome the Challenges of Merger Acquisition Integration

Integration is a crucial stage in M&A. However it also has proven to be the hardest. In fact, a survey conducted recently found that M&A companies are between 12 and 18 percent less likely to feel that they have the right capabilities and capabilities to integrate as compared to other stages of M&A.

To overcome this issue, it is important to clearly communicate the reason for the acquisition and the techniques for integration. This will ensure that everyone understands what is expected of them and demonstrates how M&A can create value for the company.

It is also essential to follow the best practices that are tailored to the goals of the deal. It is crucial to employ the same team of professionals who conducted the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents the duplication of efforts.

Another issue is keeping momentum throughout the process of integration. The team in charge of integration must ensure that growth is not lost in the process of integrating the companies. This demands that the integration team has a deep understanding of the M&A company’s operational processes, so they can make decisions that have the least impact on day-today operations.

A solid governance structure is also needed to capture synergies and track them. This includes establishing the M&A leadership group (which includes representatives from both organisations) in addition to establishing and the implementation of an integration plan, and providing clear lines of accountability. M&As that implement the best practices of http://www.virtualdataroomservices.info/what-is-deal-flow-management/ integration can produce up to 6 to 12 percent higher returns on their totals for shareholders than those who don’t.