M&A deals that fail mostly due to poor post-deal integration. DealRoom helps companies avoid common mistakes and maximize the value in their M&A transactions by assisting in the post-acquisition process.
Focus, sequencing, pace and the concentration of post-deal integration should all be tailored to the goals and sources that justified the deal. It may seem obvious, however many companies depend on generic best practices and off-the shelf plans that concentrate too much on processes and ignore the unique aspects of their deal.
One company was able to recognize that R&D offered a lot of value, but as the product that was the main focus of the acquired company was in development, it chose to focus on growth making use of the capabilities and sales channels of the new company in a strategic way. In the future they’d reevaluate whether to fully integrate R&D.
Another key practice among successful larger mergers is to delegate the responsibility for capturing cost and revenue synergies to the line managers in the acquired company. This ensures that line leaders receive the appropriate incentives and responsibilities to lead tactical execution. It also makes it easier to monitor the progress made towards goals in real-time. We’ve observed that it’s beneficial to set up the capacity for short iterative meetings, with specific goals and deadlines, so that teams can align their goals and activities while navigating through PMI cycles.
