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The deal might be closed at the time M&A transactions are completed, but if companies do not take the proper steps to integrate after the conclusion of the transaction, they could lose out on significant value. The most time-consuming and challenging M&A process is merger acquisition integration. A solid team that is well-functioning as well as clear communication and a well-constructed plan are essential to ensure success.
Pre-integration planning can eliminate many of the difficulties that companies confront when integrating. For instance when integrating systems, it is important to take careful consideration of http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ ownership of data as well as process synchronization issues. Additionally, IT solutions have to be designed early to enable the new unified company to rapidly reap the benefits. The ideal time to begin planning is during due diligence and the PMI framework should be completed prior to closing the deal. Furthermore, the most important factor to success in PMI is to identify and track important integration milestones that allow you to track progress and keep an eye on the intended outcomes of the deal.
One of the most common mistakes in integration is to integrate too much, destroying value by fundamentally altering elements of the acquired company that made it attractive in the first place. Companies that acquire businesses often underestimate the time it takes to successfully integrate a newly acquired business.
Another mistake that is common is to not evaluate the norms and culture of the workplace enough. Conflicts can occur if, for instance, the culture of two different businesses are completely different. To avoid these problems the acquirer can begin the assessment process during the due diligence phase by inviting important individuals from the target organization to examine their culture and work practices. This is extremely useful in determining the type of integration strategy that will be needed when the deal is completed.