DealRoom – Best Practices for Post-Merger Acquisition Integration

Poor post-deal integration processes are the primary reason for M&A failure. DealRoom helps businesses avoid common pitfalls and maximize the value in their M&A transactions by assisting in the post-acquisition process.

The focus, sequencing, and speed of integration after the deal must be specifically designed to serve the objectives and sources of value that justified the purchase in the first place. It sounds simple, but we see many businesses fall back on off-the shelf plans and general best practices that overemphasize process and fail to consider the unique aspects of their deal.

One company, for example, recognized that R&D was the main source of value when they acquired however, as the core product of the acquired firm was still being developed, they decided to skip the cost synergies, and instead focus on growth by using the new company’s sales channels and capabilities in a more strategic way. They would then reconsider their decision to fully integrate R&D over the long-term.

One of the key techniques used to make mergers successful is to assign line managers the responsibility of capturing revenue as well as cost synergies. This ensures that line leaders have the right motivations and responsibilities to ensure tactical execution, and it also makes it easier to monitor progress against http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising objectives in real time. We’ve also noticed that it’s helpful to build the capacity for brief meetings that are iterative and with specific goals and timelines to allow teams to adapt and update their goals and actions as they progress through the PMI cycle.