Merger Acquisition Integration Considerations

Integration is among the most crucial aspects of an acquisition merger. Many times, companies ignore the integration phase until it’s too late, the process of acquisition integration can either be a success or a failure to the deal. The integration of acquisitions is a huge undertaking that requires a lot of time.

A poor M&A planning and execution has resulted in many companies not realizing the financial advantages of the merger. The main reason for this is the lack of commitment and alignment among the leadership team that aids integration processes. The first step is to identify leaders who have the drive and expertise to successfully manage integration initiatives. This includes the M&A team as well as all the functional teams involved, like finance and human resources, operations and more.

Implementing clear tracking mechanisms that link the M&A process to the P&L is another key element. This ensures that the appropriate measures are tracked and the proper goals are established.

The final thing to consider is to engage an integration director as soon as is possible. This can be done in the diligence process, and can help optimize the target’s value by identifying synergies not being realized. An effective integration director will be able to spot opportunities prior to the deal closes, and assist in ensuring they are properly reflected in the target’s valuation.

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