DealRoom – Best Practices for Post-Merger Acquisition Integration

Poor post-deal integration processes are the primary reason for M&A failure. DealRoom assists companies to avoid common pitfalls and maximize the value of their M&A deals by assisting in the post-acquisition integration process.

The emphasis, sequence, and pace of post-deal integration should be specifically tailored to reflect the goals and sources of value that prompted the transaction in the initial place. This may sound obvious but we have seen many businesses rely on off-the-shelf plans and generic best practices that overemphasize process and overlook the unique elements of their deal.

One company, for instance, recognized that R&D was the primary source of value when they acquired however, as the core product that was acquired by the acquired company was still in development, they chose to skip the cost synergies and focus on growth by using the new company’s sales channels and capabilities in a more strategic manner. In the long term, they would reevaluate whether they wanted to fully integrate R&D.

One of the main methods used in successful mergers is to give line managers the responsibility of capturing revenue and cost synergies. This ensures that line managers receive the appropriate incentives and responsibilities to lead tactical execution. It can also make it easier to track the progress made towards goals in real-time. We’ve found it beneficial to set up the capability to hold short, iterative meetings, with specific deadlines and targets, so that teams can align their goals and activities while navigating through PMI cycles.

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