A common mistake made in M&A is to treat integration as an ordinary playbook. This can result in a tunnel vision which can affect big-picture alignment as well as customer relations, and jeopardize maximising the value of the deal. This is the reason why top-performing acquirers are mindful to tailor their integration strategies to each acquisition’s unique objectives.
The process of integrating can be challenging due to the sheer volume of moving parts that need to work seamlessly together. From the IT systems to merging departments, and determining the new organizational structure, there are numerous technological and cultural obstacles to be overcome to ensure success.
To help overcome these challenges, it is critical to centralize and streamline communication. Acquirers who utilize DealRoom for due diligence report an increase in collaboration, a decrease in the number of disconnected emails and more efficient M&A Management. DealRoom can be used to manage integrations after a transaction has been closed and to avoid http://www.virtualdataroomservices.info/what-is-deal-flow-management/ mistakes that can slow it down or even stop it from progressing.
A crucial aspect of the process of planning is to identify the leadership team that will facilitate the integration process. This is crucial, because the absence of leadership support and alignment is the main reason for failure in integration. It is also essential to prioritize tasks and form groups to take on them. This will enable the allocation of resources like management attention, talent, and time, which can result in an efficient and successful integration.
Marketing and branding are frequently the most effective sources for synergies during an integration. This type of integration is carried out in a functional-by-function manner and involves aligning the brand’s portfolios and messaging as well as creating an integrated go-to-market strategy.