Integration is one of the most crucial aspects of a merger acquisition. Many companies overlook this until it’s too late, acquisition integration can make or break the deal. Acquisition integration is a major project that requires dedicated time.
Many companies are unable to realize the expected financial gains from a merger due to inadequate M&A integration planning and execution. The main reason is the lack of alignment and commitment among the leadership team that aids integration processes. The first step is to identify and elevate leaders with the motivation and ability to effectively lead integration efforts. This includes the M&A team and all the functional teams involved, including finance human resources, operations, etc.
Implementing clear tracking mechanisms that link the M&A process to the P&L is another key element. This will ensure that the right measures are being tracked and appropriate targets are established.
Another consideration is to involve an integration director as soon as possible. This can be done in the diligence process and will help optimize the target’s value by identifying synergies that are not being realized. An experienced integration director can identify these opportunities and make sure that they are included in the value of the target.
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