How to Overcome the Challenges of Merger Acquisition Integration

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Integration is a crucial phase in M&A. It has also been proven to be one of the most difficult. A recent survey revealed that M&A companies are 12 to 18 percent less likely to think they have the necessary capabilities and capabilities for integration than any other stage of M&A.

The key to overcoming this issue is clear communication about the rationale behind the deal and integration tactics. This will ensure that everyone is aware of what is expected from them and how M&A can bring value to the company.

It is also important to employ best practices that are specific to the objectives of the deal. It is important to use the same people who did the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents repetition of efforts.

Another challenge is the need to keep momentum throughout the integration process. It is imperative that the integration team fuse the two companies without compromising growth. This requires that the integration team is fully aware of the M&A firm’s operations, so they can make decisions that have the least impact on day-today operations.

A solid governance structure is also required to capture synergies and track them. This means establishing the M&A leadership group (which includes representatives from both organisations) as well as establishing and implementing an integration plan, and providing clear lines of accountability. M&As that incorporate these integration best practices deliver as much as 6 to 12 percentage points more in total returns to shareholders than those that do not.