Integration is http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ a crucial phase in M&A. It has also proved to be one of the most difficult. In fact, a recent survey discovered that M&A companies are between 12 and 18 percent less likely to think that they have the appropriate capacities and capabilities for integration than other stages of M&A.
The key to overcoming this problem is clear communication on the rationale for the deal and the integration tactics. This will help ensure that the employees understand what is expected of them and demonstrates how the M&A will add value to their business.
It is also important to use best practice tailored to the goals of the deal. It is essential to use the same individuals who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents duplicate efforts.
Another challenge is maintaining momentum throughout the process of integration. The team responsible for integration must ensure that growth is not sacrificed in the process of integrating the companies. Furthermore, this requires a solid understanding of the M&A company’s operations, so that the team can make decisions that have the least impact on daily activities.
A strong governance structure is also necessary to track synergies and identify synergies. This includes creating an M&A leadership team (which should include both the organizations representatives) in addition to the implementation of a plan for integration, and establishing clear accountability. M&As that incorporate these integration best practices can yield as much as 6-12 percentage points higher returns to shareholders than those that don’t.