Merger Acquisition Integration Considerations

Integration is among the most crucial aspects of an acquisition merger. Most companies do not think about it until it is too http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ late, the process of acquisition integration can make or break the deal. It doesn’t matter if the goal is capital, cost or revenue synergies acquisition integration is an enormous undertaking and requires time and effort to complete efficiently.

Many companies fail to realize the anticipated financial benefits from a merger due to inadequate M&A integration planning and execution. The main reason is a lack of commitment and alignment within the leadership team that facilitates integration processes. The first step is to identify and develop leaders with the drive and ability to effectively manage integration efforts. This includes the M&A team and all the functional teams involved, like finance, human resources, operations, etc.

Implementing clear tracking mechanisms to connect the M&A process to the P&L is another key element. This ensures that the correct measures are being tracked and appropriate targets set.

An integration director should be involved as soon as is possible. This can be done during the diligence process, and can improve the target’s value by identifying synergies that aren’t being realized. An experienced integration director can identify these opportunities and ensure that they are reflected within the target’s value.