A well-planned merger acquisition integration procedure can help you to increase the proportion of the deal’s value. This is a complicated process that requires the appropriate mix of organizational operational, finance, change-management and cultural abilities to succeed. Those that get it right provide as high as 6 to 12 percent more total returns to shareholders than those who don’t.
The acquiring company should begin planning the integration process in the earliest possible time, during the diligence and negotiation phases. A thorough assessment of the culture of the target will aid in determining your approach to due diligence meetings, top management http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ meetings, and the initial planning. In the case of one healthcare acquisition managers utilized their initial understanding of the culture of the target to make decisions on strategic issues such as assessing synergies and structuring teams for integration. They limited how many people were present at the initial meetings and made other tactical decisions, such as limiting the number of functional areas involved.
We see a structured approach to harness synergies during large mergers that are successful. This means placing line managers in charge of their goals and holding them accountable for their outcomes. It also means integrating synergies into the annual operating plans of leaders and budgets.
It is crucial to have an integrated management team during the post-close integration period, which could be as long as two years. The team should have the authority to act quickly and have access to all relevant information.
