Integration is an essential stage in M&A. However it also has proven to be the hardest. In fact, a recent survey discovered that M&A companies are between 12 and 18 percent less likely to believe that they have the right capacities and capabilities for integration than for any other stage of M&A.\n<\/p>\n
A key to overcoming this issue is clear communication regarding the rationale for the deal and the integration tactics. This will ensure that everyone knows what is expected of them and how the M&A can bring value to their organization.\n<\/p>\n
It is equally important to employ the best practices tailored to the goals of the deal. It is important to use the same individuals who performed the due diligence on the M&A deal for the post-merger implementation. This assures continuity and stops the duplication of efforts.\n<\/p>\n
Another issue is the need to keep momentum during the integration process. The team responsible for integration must ensure that growth isn’t lost in the process of the integration of the companies. Moreover, this requires a thorough understanding of the M&A business’s operational processes so that the team involved in the integration can make decisions that are least disruptive to day-to-day activities.\n<\/p>\n
It is also necessary to have a strong structure for governance of integration to monitor and recognize synergies. This includes creating an M&A leadership team (which must include both companies’ representatives) in addition to creating a plan for integration, and establishing an explicit accountability. M&As that integrate these best practices will yield as high as 6 to 12 percentage points more in total returns to shareholders than those that do not.\n<\/p>\n