M&A deals that fail are most often due to inadequate post-deal integration. DealRoom assists companies avoid common pitfalls and maximize the value of their M&A deals by assisting in the post-acquisition integration process.
Focus, sequencing, speed and the focus of post-deal integration should be tailored to http://www.virtualdataroomservices.info/what-is-deal-flow-management the goals and sources that justified the deal. It may sound obvious, but we see many companies rely on off the shelf plans and generic best practices that focus too much on process and ignore the distinctive elements of their deal.
One company did, for instance. It recognized that R&D could provide a substantial amount of value, however, since the core product of the acquired company was still under development, it decided to focus on growth making use of the capabilities and sales channels of the new company in a strategic way. In the long term they’d consider rethinking whether they wanted to fully integrate R&D.
Another key practice among successful larger mergers is to assign the responsibility of capturing cost and revenue synergies onto line managers in the newly acquired company. This ensures that line leaders are given the right incentives and responsibilities for driving strategic execution, and it helps to track progress towards goals in real-time. We’ve observed that it’s beneficial to build the capacity for brief iterative meetings, with specific goals and deadlines, so that teams can align their goals and work as they progress through PMI cycles.