A well-planned integration process for mergers and acquisitions can help you maximize the value of your deal. This is a complex process that requires a blend of operational expertise, finance, change management http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising and cultural knowledge to be successful. When you're doing it right, you can earn up to 12 percent more total returns to their shareholders than those who do not.
The company that is buying should begin thinking about the integration process in the earliest possible time, during the due diligence and negotiation phases. An assessment of the culture of the target will help you to shape your approach to due-diligence meetings, top management meetings, and initial planning. In one healthcare acquisition, managers utilized their initial insights into the target's culture to make strategic decisions regarding the assessment of synergies and the structure of teams for integration. They limited how many people were present at the initial meetings and made other strategic decisions, like limiting the number of functional areas involved.
One of the main practices we see in successful large mergers is the use an organized process to capture synergies. This involves putting line managers in charge of their goals and holding them accountable for the results. It also involves including synergies in leaders' annual operating plans and budgets.
It's critical to have a well-integrated management team for the post-close integration period which could extend to two years. The team should have the power to act quickly and have access to all pertinent data.