When M&A transactions are completed it could be completed, but if companies do not initiate post-closing integration properly, they could risk missing out on significant value. In all M&A activities the merger acquisition integration process is the most challenging and time-consuming to execute. A well-functioning team, a cohesive and well-defined communication, and a solid strategy are all essential for success.
Pre-integration planning can help avoid many of the issues that companies confront when integrating. For example the process of integrating systems requires careful consideration of the ownership of data as well as process synchronization issues. Also, IT solutions need be planned early to allow the new firm to quickly gain benefits. Planning should begin during due diligence and the PMI Framework should be completed before the transaction is completed. Additionally, the key to success with PMI is identifying and tracking the key integration milestones in order to monitor progress and focus on the goals of the deal.
A common mistake is to integrate too much. This can be detrimental to the value of the acquired business by altering the elements of the acquired business that made it attractive. In the same way, companies that acquire underestimate the amount of time it takes to successfully integrate a acquired company.
Another common mistake is to not examine the culture and norms of work thoroughly enough. For instance, if the styles of two organizations are quite different there could be conflicts. To avoid such issues the company that is buying begin assessing during the due diligence process by inviting key personnel from the target company to assess their culture and work habits. This can be a very useful way to predict the kind of integration strategy which will be required after the deal is completed.