Merger Acquisition Integration Best Practices

A well-planned process for integration for mergers and acquisitions can help you increase what is deal flow management the value of your deal. This is a complex process that requires a combination of operational abilities and finance, as well as changes management, and cultural understanding to be successful. The companies that do it right have the potential to earn 6 to 12 percent higher total returns to shareholders than those who do not.

The company that is acquiring should begin thinking about the process of integration as early as possible during the diligence and negotiation phases. A review of the culture of the target can help you to shape your approach to due-diligence meetings, top management meetings, and the initial planning. In one healthcare acquisition as an example, managers used the initial insights they gained into the culture of the target to make strategic choices regarding assessing synergies, and structuring the integration team. They also restricted the number of employees who attended initial meetings, and also made other tactical decisions, like restricting the number of functional areas involved.

We see a structured approach to capturing synergies from large mergers that are successful. This involves putting line-leaders in charge of meeting their goals and holding them accountable for their performance. It also means the integration of synergies into the annual operating plans of leaders and budgets.

It is essential to have an integrated management team for the duration of the post-close integration timeframe, which could be as long as two years. The team should be given the power to act quickly and have access to all pertinent data.

Leave a Comment

Your email address will not be published. Required fields are marked *

Thank you for registering for the webinar. We will email you with the webinar login information. Thank you