DealRoom – Best Practices for Post-Merger Acquisition Integration

M&A deals that fail mostly due to inadequate post-deal integration. DealRoom assists companies to avoid common mistakes and increase the value of their M&A deals by assisting in the post-acquisition integration process.

The sequence, focus, and pace of integration post-deal must be specifically designed to reflect the goals and the sources of value that warranted the deal in the initial in the first. That sounds obvious but we have seen many businesses fall back on off-the shelf plans and generic best practices that emphasize process and neglect the specific elements of their deal.

One company, for instance recognized that R&D was the primary source of value in their acquisition however, since the acquired company’s core product was still being developed, they decided to not take advantage of the cost synergies, and instead focus on growth by using the new company’s sales channels and capabilities in a more strategic manner. In the longer term, they would reevaluate whether or not to fully integrate https://virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ R&D.

Another key element of successful mergers of larger size is to assign the responsibility for capturing cost and revenue synergies to line leaders in the newly acquired company. This ensures that line leaders are given the right incentives and responsibilities to lead tactical execution. It can also make it easier to track the progress towards goals in real time. We’ve also noticed that it is beneficial to establish the capacity for short sessions that are iterative, with specific goals and timelines which allows teams to realign and update their goals and efforts as they move through the PMI cycle.