A well-planned merger acquisition integration process helps you to increase the percentage of the value of your deal. This is a complicated process that requires the appropriate mix of organizational operational, finance, change-management and cultural capabilities to succeed. The companies that do it right deliver as much as 6 to 12 percent higher total returns to shareholders than those who don’t.
The company that is acquiring should begin thinking about the integration process as soon as is possible, during the diligence and negotiation phases. A review of the culture of the target will aid in determining your approach to due-diligence meetings with top management and the initial planning. In one healthcare acquisition managers utilized their initial understanding of the culture of the target to make strategic choices about the assessment of synergies and the structure of teams for integration. They made tactical choices like limiting the number of people were present at the initial meetings and limited the number of functional areas.
We have a methodological approach to harness synergies during large mergers that have been successful. This includes putting line managers in charge of their objectives and requiring them to be accountable for the results. It is also about integrating synergies into the annual operating budgets of leaders and plans.
It is crucial to have a management team that is integrated throughout the duration of post-close integration, which can be up to two years. The team must have the authority to act swiftly and have access to all relevant information.
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