M&A deals that fail are usually due to inadequate post-deal integration. DealRoom helps companies avoid common mistakes and increase the value of their M&A deals through the post-acquisition integration process.
The focus, sequencing, and pace of post-deal integration must be specifically designed to serve the objectives and the sources of value that prompted the transaction in the initial place. It may seem obvious, but many businesses depend on generic best practices and off-the shelf plans that focus too much on processes and overlook the specific aspects of http://www.virtualdataroomservices.info/ their deal.
One company, for instance realized that R&D was the main source of value in their acquisition however, as the acquired company’s core product was still in development, they decided to leave out the cost synergies and focus on growth by leveraging the new company’s sales channels and capabilities in a more strategic manner. They would then reconsider their decision to fully integrate R&D in the long term.
Another important practice in successful mergers of larger size is to assign the responsibility of capturing cost as well as revenue synergies over to line managers in the acquired company. This ensures that the line leaders are given the right incentives and responsibilities for driving tactical execution, and it also makes it easier to track progress towards goals in real-time. We’ve also seen that it can help to build the capability to hold short meetings that are iterative and with specific targets and timelines that allow teams to adapt and update their goals and efforts as they move through the PMI cycle.