In M&A, integration is one of the most crucial phases. It has also been proven to be the most challenging. In fact, a recent survey found that M&A companies are between 12 and 18 percent less likely to feel that they have the proper capacities and capabilities for integration than for any other stage of M&A.

To overcome this challenge It is crucial to clearly explain the reasoning for the acquisition as well as the techniques for integration. This will ensure that everyone is aware of what is expected from them and how the M&A will benefit their business.

Furthermore, it is essential to use the best practices that are suited to the deal objectives. It is important to use the same individuals who performed the due diligence on the M&A deal for the post-merger implementation. This ensures continuity and prevents the duplication of efforts.

Another issue is maintaining momentum throughout the process of integration. The team in charge of integration must ensure that growth is not sacrificed when integrating the companies. This requires that the team has a thorough understanding of the M&A company’s operational processes, so they can make decisions that have minimal impact on day-to-day operations.

A solid governance structure is essential to monitor and capture synergies. This includes creating an M&A leadership team (which should comprise both organizations’ representatives) as well as establishing and creating a plan for integration, and providing an explicit accountability. M&As that integrate these best practices yield as much as 6 to 12 percentage points higher total returns to shareholders than those that don’t.

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