Poor post-deal integration processes are the main reason for M&A failure. DealRoom helps companies avoid common pitfalls and maximize the value of their M&A transactions through the post-acquisition process.
The focus, sequencing, and pace of integration post-deal must be specifically designed to reflect the goals and sources http://www.virtualdataroomservices.info/what-is-deal-flow-management/ of value that warranted the deal in the first in the first. It may sound obvious but we have seen many companies fall back on off-the-shelf plans and generic best practices that overemphasize processes and overlook the unique elements of their deal.
One company, for instance acknowledged that R&D was a major source of value when they acquired, but because the core product that was acquired by the acquired company was still in development, they decided to leave out the cost synergies and concentrate on growth by making use of the new company’s sales channels and capabilities in a more strategic way. In the future, they would reevaluate whether they should fully integrate R&D.
One of the principal practices in successful mergers is to give line managers the responsibility of capturing revenue and cost synergies. This ensures that line leaders are given the right incentives and responsibilities to drive the tactical execution. It is also easier to monitor the progress towards goals in real time. We’ve also seen that it is beneficial to establish the capacity for short meetings that are iterative and with specific targets and timelines — so teams can realign and update their goals and efforts as they move through the PMI cycle.