How to Overcome the Challenges of Merger Acquisition Integration

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Integration is a crucial phase in M&A. It has also proved to be one of the most difficult. A recent study found that M&A firms are 12 to 18% less likely to believe they have the necessary capabilities and capabilities to integrate than any other stage of M&A.

A key to overcoming this obstacle is clear communication on the deal’s rationale and the integration tactics. This will help ensure that the employees understand what is expected of them, and also demonstrates how the M&A will add value to their business.

Additionally, it is important to use the best practices that are suited to the deal objectives. It is essential to use the same team of professionals who conducted the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents duplicate efforts.

Another issue is keeping momentum throughout the process of integration. It is crucial that the team integrating the two companies without sacrificing growth. Furthermore, this requires a thorough understanding of the M&A business’s operations to ensure that the integration team can make decisions that have the least impact to day-to-day activities.

It is also necessary to establish a solid structure for governance of integration to monitor and recognize synergies. This means forming an M&A leadership team (which must include both companies’ representatives) in addition to the implementation of a plan for integration, and establishing transparent accountability. M&As that follow the best practices of integration can provide up to 6 to 12 percent higher returns on their totals for shareholders than those who don’t.