Inadequate post-deal integration procedures are the main reason for M&A failure. DealRoom helps companies avoid common pitfalls and maximize the value in their M&A transactions by assisting in the post-acquisition process.
The focus, the sequencing, the pace and the focus of post-deal integration should all be tailored to the goals and sources that substantiated the deal. It sounds simple however we see a lot of companies rely on off the shelf plans and general best practices that emphasize process and fail to consider the unique aspects of their deal.
One company was able to recognize that R&D provided a significant amount of value, however, since the product that was the main focus of the acquired company was in development, it chose to focus on growing instead using the capabilities and sales channels of the new company in a strategic way. They then would reevaluate their http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ decision to fully integrate R&D in the long term.
Another key practice among successful mergers of larger size is to transfer responsibility for capturing cost and revenue synergies over to line managers in the acquired company. This ensures that line managers have the right incentives and responsibilities to lead the strategic execution of the merger, and also makes it easier to track progress towards goals in real time. We’ve also seen that it’s helpful to build the capability for short meetings that are iterative and with specific goals and timelines to allow teams to change their goals and adjust their and actions as they progress through the PMI cycle.