Poor post-deal integration practices are the number one reason for M&A failure. DealRoom assists companies to avoid common pitfalls and maximize the value of their M&A deals through the post acquisition integration process.
Focus, sequencing, pace and the concentration of post-deal integration should be tailored to the goals and sources that justified the deal. It may sound obvious, but many companies use generic best practices and off-the shelf plans that focus too much on processes and overlook the specific aspects of their deal.
One company, for example, recognized that R&D was a major source of value when they acquired, but because the acquired company’s core product was still in development, they decided to skip the cost synergies and concentrate on growth by leveraging the new company’s sales channels and capabilities in a more strategic manner. They would then reevaluate the decision to fully integrate R&D in the long run.
One of the key strategies for successful mergers http://www.virtualdataroomservices.info/what-is-deal-flow-management is to give line leaders responsibility for capturing revenue and cost synergies. This ensures that line executives receive the right rewards and responsibilities for directing tactical execution. It also makes it easier to track the progress towards goals in real time. We’ve seen it’s beneficial to build the capability to hold short, iterative meetings, with specific goals and deadlines, so that teams can adjust their goals and activities while moving through the PMI cycles.