One common M&A problem is that it treats integration as a standard playbook. This can lead to blindness, which can cause problems in the bigger picture, and in relationships with customers, and ultimately reduce the deal’s maximum value. This is why high-performing acquirers are careful to tailor their integration plans to the specific goals of each acquisition.
The process of integration is challenging due to the number of moving parts that must work together seamlessly. From the IT systems to merging departments, and establishing the new organizational structure there are many technological and cultural obstacles that must be addressed to ensure success.
Centralizing and streamlining communications is essential to overcome these issues. Acquirers using DealRoom to conduct due diligence are reporting improved collaboration, a decrease in disconnected emails, as well as more efficient M&A management. If you continue to use DealRoom after closing, it becomes easier to manage integration and avoid mistakes that can slow down or hinder a deal.
The first step during the planning phase is to establish an executive team that can aid in the process of integration. This is essential, as the lack of leadership support and alignment is the main cause of integration failure. It is also essential to prioritize tasks and form groups to take on them. This allows for the allocation of resources, such as talent, management attention and time, which can result in an efficient and successful integration.
The most effective synergies in integration http://www.virtualdataroomservices.info/what-is-deal-flow-management/ can be found in the company’s marketing and brand. This kind of integration is done function-by-function and involves coordinating the product portfolios, messaging, and establishing a common marketing strategy.