M&A deals that fail typically due to inadequate post-deal integration. DealRoom helps companies avoid common pitfalls and maximize the value of their M&A transactions by assisting in the post-acquisition process.
The focus, the sequencing, the pace and the focus of post-deal integration should be tailored to the goals and sources that justified the deal. It may sound obvious but we have seen many companies rely on off the shelf plans and generic best practices that focus too much on process and fail to consider the unique aspects of their deal.
One company, for instance acknowledged that R&D was a major source of value in their acquisition however, as the core product of the acquired company was still in development, they chose to ignore the cost synergies and concentrate on growth by leveraging the new company’s sales channels and capabilities in a more strategic manner. In the future, they would reevaluate whether or not to fully integrate R&D.
One of the principal methods used in successful mergers is to provide www.virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ line managers with the responsibility of capturing revenue as well as cost synergies. This ensures that line executives are given the right incentives and responsibilities for directing tactical execution. It is also easier to monitor the progress made towards goals in real-time. We’ve observed that it’s helpful to create the capacity for short meetings that are iterative, with clear goals and deadlines, so that teams can reorient their goals and efforts as they progress through PMI cycles.