In M&A, integration is among the most critical stages. It has also proven to be one of the most difficult. In fact, a survey conducted recently found that M&A companies are 12 to 18 percent less likely to think that they have the necessary capabilities and capabilities to integrate than other stages of M&A.
The most effective way to overcome this obstacle is clear communication of the deal’s rationale and the integration tactics. This will ensure that everyone understands what is expected of them, and shows how the M&A try this out will add value to their company.
It is also crucial to use best practice tailored to the goals of the deal. For example, using the same team of professionals who performed due diligence for the M&A for the post-merger integration ensures continuity, avoiding duplicate efforts and reducing the time.
Another challenge is the need to maintain momentum during the process of integration. The team responsible for integration must ensure that growth isn’t lost in the process of the integration of the companies. This requires that the integration team is fully aware of the M&A firm’s operations so that they can make decisions that have the least impact on day-today operations.
A solid governance structure is also required to track synergies and identify synergies. This includes setting up the M&A leadership group (which should comprise representatives from both organizations) and then developing an integration plan and establishing clear lines of accountability. M&As that follow these integration best practices can produce up to 6 to 12 percent more in total returns for shareholders than those who don’t.