Merger Acquisition Integration Considerations

One of the most important aspects of an effective merger acquisition is the integration phase. Most companies do not think about it until it is too late, the process of acquisition integration can determine the success or failure of the deal. If the objective is cost, capital, or revenue synergies, the process of integrating acquisitions can be an enormous undertaking and requires time and effort to complete efficiently.

A poor M&A planning and execution has resulted in many companies failing to realize the financial benefits of merging. The most important reason is lack of commitment and alignment within the leadership team that aids integration processes. The first step http://www.virtualdataroomservices.info/ is to find leaders with the desire and ability to effectively manage integration initiatives. This includes the M&A team, as well as all the functional teams involved, such as finance human resources, operations and more.

Another crucial aspect of M&A integration is to establish clear tracking mechanisms that link the process to the P&L. This means setting clear KPIs that incorporate the business model of the target company and not only the acquirer’s. This will help ensure that the right measures are being tracked and appropriate targets are established.

An integration director should be involved as early as is possible. This can be done in the diligence process, and can help optimize the value of the target by finding synergies that aren’t being realized. A good integration director can identify these opportunities and make sure that they are reflected in the target’s value.