DealRoom – Best Practices for Post-Merger Acquisition Integration

M&A deals that fail are mostly due to poor post-deal integration. 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 speed of integration after the deal must be specifically designed to support the objectives and the sources of value that justified the purchase in the first in the first. This may sound obvious however we see a lot of companies rely on off the shelf plans and generic best practices that overemphasize processes and fail to consider the unique aspects of their deal.

One company did, for instance. It recognized that R&D was a significant source of value, but since the core product of the acquired company was under development, it decided to focus on growth instead, leveraging the capabilities and sales channels of the new company in a strategic http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ fashion. In the longer term they will reevaluate whether or not to fully integrate R&D.

Another crucial practice that is common to successful mergers of a larger scale is to hand the responsibility of capturing cost and revenue synergies over to line managers within the acquired business. This ensures that the line leaders have the appropriate motivations and responsibilities to ensure strategic execution, and it helps to track progress against goals in real-time. We’ve also noticed that it’s helpful to create the capacity for brief meetings that are iterative and with specific goals and timelines that allow teams to adjust and revise their goals and strategies as they progress through the PMI cycle.