Integration is among the most crucial aspects of a merger acquisition. Acquisition integration is often overlooked by companies until it’s too late. It can determine the success or failure of a deal. The integration of acquisitions is a huge undertaking that requires a lot of time.
A lack of M&A planning and execution has led to numerous companies not gaining the financial benefits of the merger. The main reason is the lack of alignment and commitment among the leadership team that facilitates integration processes. The first step is to identify those who have http://www.virtualdataroomservices.info/what-is-deal-flow-management/ the motivation and expertise to successfully lead integration initiatives. This includes the M&A team as well as all the functional teams involved, such as finance human resources, operations and more.
Implementing clear tracking mechanisms to link the M&A process to the P&L is a further important aspect. This ensures that the correct measures are tracked and appropriate goals set.
The final thing to consider is to engage an integration director as soon as is possible. This could be done as part of the diligence process and can maximize the value of the target by identifying synergies not being realized. An effective integration director will be able to spot these opportunities before the deal is closed and assist in ensuring they are included in the target’s value.
