Inadequate post-deal integration procedures are the number one reason for M&A failure. DealRoom assists companies avoid common mistakes and increase the value of their M&A deals through the post-acquisition integration process.

The sequence, focus, and speed of integration after the deal should be tailored specifically to support the objectives and value-added sources that prompted the transaction in the first in the first. That sounds obvious however, we see many businesses rely on off-the-shelf plans and general best practices that focus http://www.virtualdataroomservices.info/ too much on process and overlook the unique elements of their deal.

One company has, for instance, realized that R&D provided a significant amount of value, however, since the primary product of the acquired company was under development, it decided to focus on growing instead, leveraging the capabilities and sales channels of the new company in a strategic way. They would then reconsider their decision to fully integrate R&D in the long run.

Another important practice in successful larger mergers is to assign the responsibility of capturing cost and revenue synergies to the line managers in the newly acquired company. This ensures that line executives are given the right incentives and responsibilities to lead the tactical execution. It can also make it easier to monitor progress towards goals in real-time. We’ve seen it’s helpful to create the capability for short meetings that are iterative, with clear targets and deadlines, so teams can align their goals and efforts while moving through the PMI cycles.