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Inadequate post-deal integration procedures are the number one reason for M&A failure. DealRoom assists companies avoid common pitfalls and maximize the value of their M&A deals by assisting in the post-acquisition integration process.

The focus, the sequencing, the pace and the importance of post-deal integration should all be tailored to the objectives and sources that substantiated the deal. It may sound obvious, but many businesses are reliant on generic best practices and off the shelf plans that focus too much on process and ignore the unique aspects of their deal.

One company, for example recognized that R&D was the main source of value in their acquisition however, as the core product of the acquired company was still in development, they decided to skip the cost synergies and concentrate on growth by leveraging the new company’s sales channels and capabilities in a more strategic manner. They then would reevaluate their decision to fully integrate R&D over the long-term.

Another key practice among successful mergers is to assign the responsibility of capturing cost and revenue synergies over to line managers in the acquired company. This ensures that line executives are given the right incentives and responsibilities to drive the tactical execution. It is also easier to monitor the progress towards goals in real time. We’ve found it helpful to create the capacity for short iterative meetings, with specific targets and deadlines, so teams can realign their goals and activities while moving through the PMI cycles.