Merger Acquisition Integration Considerations

Integration is one of the most important aspects of an acquisition merger. Integration of acquisitions is often ignored by companies, until it’s too late. It could be the difference in a deal. Whether the goal is cost, capital, or revenue synergies, the process of integrating acquisitions can be an enormous undertaking that requires dedicated time to finish efficiently.

A poor M&A planning and execution has resulted in numerous companies not gaining the financial benefits of merging. The primary reason is the lack of commitment and coordination among the leadership team which aids in integration processes. The first step is to identify leaders with the desire and skills to successfully lead integration initiatives. This includes the M&A team and all the functional teams involved, including finance, human resources, operations and more.

Another crucial aspect of M&A integration is the implementation of clear tracking mechanisms that link the process to the P&L. This requires establishing clear KPIs that take into account the business model of the target firm and not only the acquirer’s. This helps to ensure that the appropriate measures are being tracked and the proper targets are set.

Another consideration is to engage an integration director as early as possible. This could be part of the diligence process and will increase the value of the target by identifying synergies not being realized. An effective integration director will be able see these opportunities before the deal closes and can assist in ensuring they are included in the target’s value.

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