merger acquisition integration
A common pitfall of M&A is treating integration like the standard approach, which could result in a loss of perspective and a loss of big-picture alignment customer relations, and ultimately hinder the value of the deal. This is the reason why top-performing acquirers make sure to tailor their integration plans to the specific objectives of each acquisition.
The process of integration is difficult due to the number of moving parts that have to work seamlessly. The integration process can be difficult due to the sheer volume of moving parts that have to work together.
To overcome these difficulties, it is critical to streamline and centralize communication. Acquirers who use DealRoom to conduct due diligence have reported increased collaboration, a reduction in disconnected emails, and more efficient M&A management. If you continue to use DealRoom post-close, it is easier to manage integration and avoid the mistakes that can delay or even stop a transaction.
A key step in the planning stage is to identify an executive team that can facilitate the integration process. This is crucial, as the absence of leadership support and alignment is a leading reason for failure in integration. It is also vital to prioritize tasks and set up groups to take on them. This allows for the proper allocation of resources, for example expertise and attention from management which can help make a more efficient and effective integration.
Often, the most valuable synergies in integration can be found in a company’s marketing and brand. This type of integration is done function-by-function and involves coordinating messages, product portfolios and establishing a unified marketing strategy.