In M&A, integration is among the most crucial steps. However, it has also proven to be one of the most difficult. A recent study found that M&A firms are 12 to 18 percent less likely that they have the capabilities and capabilities for integration than other stages of M&A.
One of the most important factors to overcome this issue is clear communication of the rationale behind the deal and the integration tactics. This will ensure that everyone is aware of what they are expected to do and how the M&A will benefit the company.
It is also important to follow best practices that are 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 ensures continuity, avoiding duplication of effort and saving time.
Another issue is the need to maintain momentum throughout the integration process. The team that is integrating must ensure that growth isn’t lost in the process of integrating the two companies. This requires that the team has a deep understanding of the M&A firm’s operations so that they can make decisions that have minimal impact on day-to-day operations.
It is also necessary to have a strong integration governance structure that can track and identify synergies. This means forming an M&A leadership team (which should include you could look here both the organizations’ representatives) as well as establishing and setting up a strategy for integration, and providing clear accountability. M&As that implement the best practices of integration can provide up to 6 to 12 percent more total returns for shareholders than those who don’t.