DealRoom – Best Practices for Post-Merger Acquisition Integration

Poor post-deal integration processes are the most common reason for M&A failure. DealRoom assists companies to avoid common pitfalls and maximize the value of their M&A deals by helping them through the post-acquisition integration process.

The emphasis, sequence, and speed of integration after the deal should be specifically tailored to support the objectives and sources of value that prompted the transaction in the initial in the first. It may seem obvious, but many http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising/ businesses rely on generic best practices and off the shelf plans that focus too much on processes and don’t consider the unique aspects of their deal.

One company was able to recognize that R&D provided a significant amount of value. However, as the product that was the main focus of the acquired company was in development, it chose to focus on growth instead, leveraging the capabilities and sales channels of the new company in a strategic manner. They then would reevaluate their decision to fully integrate R&D over the long-term.

One of the main strategies for successful mergers is to give line leaders responsibility for capturing revenue and cost synergies. This ensures that line executives receive the appropriate incentives and responsibilities to drive tactical execution. It helps to track progress towards goals in real-time. We’ve observed that it’s beneficial to build the capacity for short iterative meetings, with specific targets and deadlines, so teams can adjust their goals and efforts while moving through the PMI cycles.