Merger Acquisition Integration Considerations

One of the most crucial aspects of a successful merger acquisition is the integration phase. Many times, companies ignore the integration phase until it’s too late, the process of acquisition integration can make or break the deal. Acquisition integration is a massive undertaking that requires dedicated time.

A lack of M&A planning and execution http://www.virtualdataroomservices.info/what-is-deal-flow-management/ has resulted in numerous companies not gaining the financial benefits of merging. The primary reason is the lack of commitment and alignment among the leadership team, which facilitates integration processes. The first step is to identify and elevate leaders who have the drive and ability to effectively lead integration efforts. This includes the M&A team, as well as all the functional teams involved, including finance operations, human resources, finance etc.

Implementing clear tracking mechanisms that link the M&A process to the P&L is another important element. This ensures that the right measures are being tracked and the appropriate targets are established.

An integration director should be involved as soon as is possible. This could be part of the diligence process. It can increase the value of the target by identifying synergies that are not being realized. An experienced integration director will identify these opportunities and ensure that they are reflected within the value of the target.