Inadequate post-deal integration practices are the primary reason for M&A failure. DealRoom assists companies avoid common pitfalls and maximize the value of their M&A deals through the post-acquisition integration process.
Focus, sequencing, pace and the importance of post-deal integration should be adapted to the goals and sources that substantiated the deal. It may seem obvious, however many businesses rely on generic best practices and off-the shelf plans that concentrate too much on process and ignore the unique aspects of their deal.
One company, for instance recognized that R&D was the main source of value in their acquisition however, since the core product that was acquired by the acquired company was still in development, they chose to skip the cost synergies and focus on growth by making https://virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ use of the new company’s sales channels and capabilities in a more strategic way. In the long run they’d consider rethinking whether to fully integrate R&D.
Another important practice in successful mergers of a larger scale is to hand the responsibility of capturing cost and revenue synergies to the line managers in the acquired company. This ensures that line executives receive the right rewards and responsibilities to lead the tactical execution. It is also easier to monitor the progress towards goals in real time. We’ve seen it’s helpful to create the capability to hold short, iterative meetings, with specific deadlines and targets, so that teams can adjust their goals and efforts as they progress through PMI cycles.