Inadequate post-deal integration procedures are the most common reason for M&A failure. 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 should be tailored specifically to meet the goals and sources of value that justified the purchase in the first place. It sounds simple however, we see many businesses fall back on off-the shelf plans and generic best practices that focus too much on process and ignore the distinctive elements of their deal.
One company did, for instance. It recognized that R&D provided a significant amount of value, but since the core product of the acquired company was still in development, they decided to focus on growth instead making use of the capabilities and sales channels of the new business in a strategically-oriented manner. In the long run, they would reevaluate whether or not to fully integrate R&D.
One of the main practices in successful mergers is to give line leaders the responsibility of capturing revenue as well as cost synergies. This ensures that line leaders have the right incentives and responsibilities for driving the tactical execution. It can also make it easier to track the progress made towards goals in real-time. We’ve also seen that it’s helpful to create the capability for short meetings that are iterative and with specific deadlines and targets that allow teams to adjust and revise their goals and efforts as they move through the PMI cycle.
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