How to Overcome the Challenges of Merger Acquisition Integration

In M&A, integration is among the most crucial steps. It has also proved to be one of the most difficult. In fact, a survey conducted recently found that M&A companies are between 12 and 18 percent less likely to believe that they have the appropriate capabilities and capabilities to integrate than other stages of M&A.

The most effective way to overcome this issue is clear communication regarding the rationale behind the deal and integration tactics. This will help ensure that the employees understand what is expected of them and also demonstrates how the M&A will add value to their organization.

It is also essential to follow the best practices that are tailored to the goals of the deal. For example, using the same individuals who conducted due diligence for the M&A for the post-merger integration ensures continuity, eliminating duplication of efforts and reducing the time.

Another challenge is the need to maintain momentum throughout the integration process. The team responsible for integration must ensure that growth isn’t compromised in the process of the integration of the companies. This demands that the integration team has a deep understanding of the M&A company’s operational processes, so they can make decisions that have the least impact on daily operations.

A strong governance structure is also required to capture synergies and track them. This includes establishing the M&A leadership group (which includes representatives from both organizations) as well as establishing and developing an integration plan and visit the website establishing clear lines of accountability. M&As that follow these best practices for integration can produce up to 6 to 12 percent higher returns on their totals for shareholders than those that don’t.