In M&A integration, it is one of the most critical stages. However it has also proved to be the hardest. A recent survey revealed that M&A firms are between 12 and 18 percent less likely that they have the capabilities and capabilities to integrate than other stages of M&A.
To overcome this challenge, it is important to clearly communicate the reason of the deal as well as techniques for integration. This will ensure that everyone knows what is expected of them and how M&A can benefit their organization.
It is also essential to use best practice tailored to the goals of the deal. For instance, using the same team of professionals who performed due http://www.virtualdataroomservices.info/what-is-deal-flow-management diligence for the M&A for the post-merger integration assures continuity, preventing duplication of efforts and reducing the time.
Another challenge is maintaining momentum throughout the process of integration. It is essential that the integration team fuse the two companies without sacrificing growth. This requires that the team has a deep understanding of the M&A company’s operational processes, so they can make decisions that have the least impact on day-to-day operations.
It is also necessary to have a strong system of governance for integration to track and recognize synergies. This includes establishing the M&A leadership group (which should comprise representatives from both organizations), creating and the implementation of an integration plan, and providing clear lines of accountability. M&As that incorporate these integration best practices can yield as much as 6-12 percentage points more in total returns to shareholders than those that do not.
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