DealRoom – Best Practices for Post-Merger Acquisition Integration

M&A deals that fail are most often due to inadequate post-deal integration. DealRoom assists companies to avoid common pitfalls and maximize the value of their M&A deals by helping them through the post-acquisition integration process.

Focus, sequencing, speed and the emphasis of post-deal integration must be adapted to the goals and sources that substantiated the deal. This may sound obvious however, we see many businesses fall back on off-the shelf plans and general best practices that focus too much on process and overlook the unique elements of their deal.

One company, for instance, recognized that R&D offered a lot of value, but since the core product of the acquired company was under development, it decided to focus on growing instead by leveraging the capabilities and sales channels of the new business in a strategically-oriented manner. In the longer term they will reevaluate whether to fully integrate R&D.

Another important practice in successful mergers is to delegate the responsibility of capturing cost as well as revenue synergies to line leaders within the acquired business. This ensures that line executives are given the http://www.virtualdataroomservices.info/ right incentives and responsibilities to drive the tactical execution. It is also easier to monitor the progress toward goals in real-time. We’ve seen that it is beneficial to set up the capacity for short meetings that are iterative, with clear dates and goals, so that teams can realign their goals and work while moving through the PMI cycles.