Merger Acquisition Integration Considerations

One of the most important aspects of the success of a merger acquisition is the integration phase. Acquisition integration is often not considered by companies until it’s too late. It can make or break a deal. If the objective is cost, capital, or revenue synergies, acquisition integration can be an enormous undertaking that requires a dedicated time to complete effectively.

Many companies fail to realize the anticipated financial benefits from a merger due to inadequate M&A integration planning and execution. The primary reason is lack of commitment and alignment in the leadership team facilitating integration processes. The first step is to find leaders with the desire and expertise to successfully manage integration initiatives. This includes the M&A leadership team as well as functional teams involved in the process, such as finance, human resources operations, human resources, and more.

Another key element of M&A integration is the implementation of clear tracking mechanisms that link the process to the P&L. This requires establishing clear KPIs that incorporate the business model of the target firm and not only the acquirer’s. This ensures that only the right measures are tracked and the proper goals are established.

A final consideration is to engage an integration director as soon as is feasible. This could be part of the diligence process. It can optimize the target’s worth by identifying synergies that aren’t realizing. An experienced integration director http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy can spot these opportunities before the deal closes, and assist in ensuring they are properly reflected in the target’s value.