A common pitfall of M&A is that integration great site is treated as a standard playbook, which can lead to tunnel vision, hurt big-picture alignment and customer relations, and hinder the potential value of the deal. This is why high-performing acquirers are mindful to tailor their integration plans to each acquisition’s unique objectives.
The integration process is difficult due to the sheer number moving parts that need to collaborate seamlessly. The integration process is difficult because of the sheer number of moving components that must work together.
Centralizing and streamlining communications is crucial to overcome these issues. Acquisition companies that use DealRoom to conduct due diligence report improved collaboration, a decrease in disconnected emails, and more efficient M&A management. DealRoom can be used to manage integrations after the transaction has concluded and to avoid errors that can slow or derail it.
The most important step in the planning process is to identify a leadership team that will assist in the integration process. This is essential, as the lack of leadership support and alignment is the primary reason for failure in integration. Prioritizing the tasks and forming groups to tackle them is also crucial. This will enable the allocation of resources, such as talent, management attention and time, which will create an efficient and successful integration.
Most often, the most valuable sources of integration synergies are found in a company’s advertising and brand. This kind of integration is done function-by-function and involves coordinating messages, portfolios of products and creating a unified marketing strategy.