Merger Acquisition Integration Best Practices


A well-planned merger acquisition integration process will help you increase the proportion of the deal’s value. It is a challenging process that requires the right mix of organizational operational, finance, change-management and cultural capabilities to succeed. Companies that are successful are able to provide 6 to 12 percent higher total returns to shareholders than those who do not.

The acquiring company should begin thinking about integration as early as it is possible during the diligence and negotiations phases. A thorough assessment of the target culture can help shape your strategy for due diligence, top-management meetings and initial integration planning. In one healthcare acquisition as an instance, managers utilized the initial insights they gained about the culture of the target to make strategic decisions regarding synergies and structuring the integration team. They also restricted the number of employees who were in attendance at initial meetings, as well as made other tactical decisions, such as restricting the number of functional areas that were involved.

We have a methodological approach to harness synergies during large mergers that have been successful. This includes putting line managers in charge of their objectives and holding them accountable for their results. It also involves integrating synergies in leaders’ annual operating budgets and plans.

It is crucial to have an integrated management team for the duration of the post-close integration timeframe, which could be as long as two years. The team should be given the authority to act quickly and have access to all pertinent information.

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