Integration is a crucial stage in M&A. It has also been proven to be the most difficult. A recent study found that M&A firms are between 12 and 18 percent less likely to think that they have the capabilities and capabilities to integrate than any other stage of M&A.
To overcome this challenge It is crucial to clearly communicate the reason for the deal and the strategies for integration. This will help ensure that the employees understand what is expected of them, and demonstrates how M&A will drive value for their organization.
It is also essential to use best practice tailored to the deal’s objectives. It is important to use the same people who did the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents duplication of effort.
Another issue is keeping momentum during the process of integration. It is crucial that the team of integration join the two companies without sacrificing growth. This requires that the integration team has a thorough understanding of the M&A company’s operations, so they can make decisions that have the least impact on daily operations.
A strong governance structure is also necessary to capture synergies and track them. This includes creating an M&A leadership team (which should include both the organizations representatives) and establishing and setting up a strategy for integration, and providing clear accountability. M&As that follow the best practices of integration can deliver up to 6 to 12 percent higher returns on their totals for shareholders you could look here than those that do not.