During M&A integration, it is one of the most crucial steps. However, it has also proven to be one of the most difficult. A recent survey found that M&A firms are between 12 and 18 percent less likely to think that they have the capabilities and capabilities for integration than any other stage of M&A.
To overcome this obstacle, it is important to clearly communicate the reason for the deal and the techniques for integration. This will ensure that everyone is aware of what is expected of them and how the M&A can benefit their organization.
It is also essential to use best practice tailored to the specific goals of the deal. For instance, using the same individuals who conducted due diligence for the M&A for the post-merger integration ensures continuity, preventing duplication of effort and saving time.
Another issue is keeping momentum throughout the process of integration. It is essential that the team of integration join the two companies without sacrificing growth. This demands that the integration team is fully aware of the M&A company’s operational processes, so they can make decisions that have the least impact on day-today operations.
It is also crucial to establish a solid integration governance structure to track and identify synergies. This includes setting up the M&A leadership group (which includes representatives from both organizations), creating and the implementation of an integration plan, and establishing clear lines of accountability. M&As that integrate these best practices will yield as high as 6-12 percentage points higher total returns to shareholders than those that do not.
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