Hiview International Uncategorized Merger Acquisition Integration Best Practices

Merger Acquisition Integration Best Practices

A well-planned merger acquisition integration process can help you increase the percentage of your deal value. This is a challenging process that requires a blend of operational skills, organizational skills along with finance, the management of change and cultural expertise to be successful. If you do it right, you can are able to provide 6 to 12 percent more total returns to shareholders than those who don’t.

The acquiring company must start thinking about integration as soon as possible during the negotiation and diligence phases. A thorough assessment of the culture of target companies can guide your strategy for due diligence, top-management meetings and initial integration planning. In a healthcare acquisition for example, managers used the initial insight they gained into the culture of the target to make strategic choices regarding assessing synergies, and structuring integration team. They limited how many people were present at the initial meetings, and also made other tactical decisions, like limiting the number of functional areas that were involved.

One http://www.virtualdataroomservices.info key practice we see in successful mergers is the use an organized method for capturing synergies. This means putting line managers in charge of their objectives and holding them accountable for their results. It is also about integrating synergies into leaders’ annual operating budgets and plans.

It’s critical to have a well-integrated management team for the post-close integration timeframe, which could last up to two years. The team should be given the authority to act swiftly and have access to all pertinent information.

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