A well-planned process for integration for mergers and acquisitions can assist in increasing the value of your deal. This is a complex procedure that requires the appropriate mix of organizational operational, finance, change management and cultural abilities to succeed. Those who get it right will yield up to 12 percent higher total dividends to shareholders than those who do not.
The acquiring company should start thinking about the process of integration in the earliest possible time, during the due diligence and negotiation phases. An assessment of the culture of the target will assist in shaping your approach to due diligence meetings with top management and the initial planning. In the case of one healthcare acquisition for example, managers used their initial insight into the culture of the target to make strategic decisions about the assessment of synergies and the structure of integration teams. They took tactical decisions, such as limiting how many people attended the initial meetings, and limiting the number functional areas.
We’ve identified a method to capturing synergies from large mergers that are successful. This involves putting line leaders in charge of reaching http://www.virtualdataroomservices.info/what-is-deal-flow-management/ their goals and holding them accountable for the results. It also involves integrating synergies into leaders’ annual operating budgets and plans.
It’s critical to have an integrated management team for the post-close integration period, which could last up to two years. The team must have the authority to act swiftly and have access to all relevant information.