DealRoom – Best Practices for Post-Merger Acquisition Integration

Poor post-deal integration processes are the most common reason for M&A failure. DealRoom helps businesses avoid common pitfalls and maximize the value in their M&A transactions through the post-acquisition process.

Focus, sequencing, pace and the concentration of post-deal integration should all be tailored to the objectives and sources that justified the deal. That sounds obvious however, we see many businesses rely on off-the-shelf plans and general best practices that overemphasize process and neglect the specific elements of their deal.

One company did, for instance. It recognized that R&D was a significant source of value, however, since the core product 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 fashion. They would then reconsider their decision to fully integrate R&D in the long run.

One of the most important strategies for successful mergers is to give line leaders the responsibility of capturing revenue as well as cost synergies. This ensures that line executives receive the right rewards and responsibilities to drive the tactical execution. It is also easier to monitor the progress toward goals in real-time. We’ve observed that it’s helpful to create the capability for short iterative meetings, with specific goals and deadlines, so that teams can reorient their goals and work while navigating through PMI cycles.

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