A well-planned merger acquisition integration procedure can help you to increase the proportion of the deal’s value. This is a complex process that requires the appropriate mix of organizational operational, finance, change management and cultural abilities to succeed. The companies that do it right deliver as much as 6 to 12 percent higher returns to shareholders overall than those that do not.

The company that is acquiring should begin planning the integration process as early as possible, during the diligence and negotiation phases. A thorough assessment of the culture of the target company will help determine the best strategy for due diligence, meetings with top management and the initial planning for integration. In the case of one healthcare acquisition for example, managers used their initial knowledge of the culture of the target to make strategic https://virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ decisions regarding assessing synergies and structuring teams for integration. They took tactical decisions, such as limiting how many people attended the initial meetings, and also limiting the number of functional areas.

We see a structured approach to harness synergies during large mergers that work. This involves putting line managers in charge of their objectives and requiring them to be accountable for the results. It also means including synergies in the annual operating plans of leaders and budgets.

It is crucial to have a well-integrated management team for the duration of the post-close integration phase, which could be up to two years. The team should have the power to act quickly and have access to all relevant data.