Merger Acquisition Integration Considerations

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One of the most crucial aspects of an effective merger acquisition is the integration phase. Most companies do not think about it until it’s too late, the process of acquisition integration can either be a success or a failure to the deal. Acquisition integration is a huge project that requires dedicated time.

Many companies fail to realize the anticipated financial gains of a merger as a result of inadequate M&A integration planning and execution. The most common reason is a lack of commitment and coordination in the leadership team in facilitating integration processes. The first step is to identify and build up those with the drive and experience to lead integration efforts. This includes the M&A team and all the functional teams involved, like finance and human resources, operations etc.

Implementing clear tracking mechanisms to connect the M&A process to the P&L is another key element. This will help ensure that the appropriate measures are being tracked and proper targets are set.

An integration director should be involved as early as is possible. This could be part of the diligence process and can increase the value of the target by identifying synergies not being realized. An experienced integration director can identify these opportunities and ensure they are taken into account in the value of the target.

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