Merger Acquisition Integration Best Practices

A well-planned merger acquisition integration process will help you realize a greater percentage of the value of your deal. This is a complex process that requires the proper mix of organizational, operational, finance, change management and cultural skills to succeed. When you’re doing it right, you will yield up to 12 percent higher total profits to shareholders than those who don’t.

The acquiring company must begin to think about integration as soon as possible in the due diligence and negotiations phases. An assessment of the culture of the target will aid in shaping your approach to due-diligence meetings at the top of management as well as the initial planning. In a healthcare acquisition for instance, managers utilized the initial insights they gained about the culture of the target to make strategic choices about assessing synergies, as well as organizing the team for integration. They restricted the number of people who were in attendance at initial meetings and made other tactical decisions, such as restricting the number of functional areas that were involved.

One of the main practices we see in successful large mergers is the use an organized process to capture synergies. This means putting line managers responsible for achieving their goals and making them accountable for their performance. It is also about integrating synergies into leaders’ annual operating budgets and plans.

It’s critical to have an integrated management team during the post-close integration phase, which could be as long as two years. This team must be given the authority to act quickly and have access to all relevant information.

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