Merger Acquisition Integration Best Practices

A well-planned merger acquisition integration process can help you increase the proportion of the deal’s value. This is a complicated process that requires a blend of organizational skills, operational skills, finance, changes management, and cultural understanding to be successful. The ones who are successful can yield up to 12 percent more profits to shareholders than those who don’t.

The company that is buying should begin contemplating the process of integration as soon as is possible, during the diligence and negotiation phases. An assessment of the culture of the target can aid in determining your approach to due diligence meetings with top management and initial planning. In one healthcare acquisition for example, managers used the initial insight they gained about the culture of the target to make strategic choices about assessing synergies, as well as structuring the integration team. They made tactical decisions like limiting the number of people attended the initial meetings and limiting the number functional areas.

One of the most common practices we observe in successful mergers is the use of an organized procedure for capturing synergies. This involves putting line managers in charge of their goals and holding them accountable for the outcomes. It also involves integrating synergies into leaders’ annual operating budgets and plans.

It is vital to have a team of managers that is integrated throughout the duration of post-close integration. It could take up to two years. The team should have the power to act quickly and access to all relevant data.

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