M&A deals that fail are usually due to poor post-deal integration. DealRoom helps companies avoid common pitfalls, and maximize the value in their M&A transactions by assisting in the post-acquisition process.
Focus, sequencing, pace and the importance of post-deal integration should be adapted to the goals and sources that justified the deal. This may sound obvious, but we see many businesses fall back on off-the shelf plans and generic best practices that focus too much on process and fail to consider the unique aspects of their deal.
One company, for instance, recognized that R&D effective information technology m&a integration strategy was a significant source of value, however, since the primary product of the acquired company was still in development, they decided to focus on growth rather using the capabilities and sales channels of the new company in a strategic manner. In the future, they would reevaluate whether or not to fully integrate R&D.
Another important practice in successful mergers of a larger scale is to transfer responsibility for capturing cost and revenue synergies over to line managers within the acquired business. This ensures that line executives have the right incentives and responsibilities to lead tactical execution. It helps to monitor the progress towards goals in real time. We’ve seen that it is beneficial to build the capacity for short iterative meetings, with specific goals and deadlines, so that teams can realign their goals and activities while navigating through PMI cycles.
