DealRoom – Best Practices for Post-Merger Acquisition Integration

M&A deals that fail usually due to poor post-deal integration. DealRoom helps businesses avoid common pitfalls and maximize the value in their M&A transactions through the post-acquisition process.

The emphasis, sequence, and pace of post-deal integration should be explicitly tailored to support the objectives and value-added sources that warranted the deal in the first in the first. It may sound obvious, but many companies depend on generic best practices and off-the shelf plans that concentrate too much on process and ignore the unique aspects of their deal.

One company, for instance realized that R&D was a primary source of value in their acquisition however, since the core product that was acquired by the acquired company was still being developed, they decided to skip the cost synergies and focus on growth by using the new company’s sales channels and capabilities in a more strategic way. In the long run they’d reevaluate whether or not to fully integrate R&D.

One of the key practices in successful mergers is to give line managers responsibility for capturing revenue and cost synergies. This ensures that line leaders are given the right incentives and responsibilities to drive tactical execution, and it helps to monitor progress against objectives in real-time. We’ve also noticed that it’s helpful to establish the capacity for brief, iterative meetings — with a specific timeline and target to http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising/ allow teams to realign and update their goals and actions as they progress through the PMI cycle.