M&A deals that fail typically due to inadequate post-deal integration. DealRoom assists companies avoid common pitfalls and maximize the value of their M&A deals by assisting in the post-acquisition integration process.

The emphasis, sequence, and speed of integration after the deal must be specifically designed to support the objectives and the sources of value that warranted the deal in the first place. It may seem obvious, but many businesses rely 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 realized that R&D was the primary source of value when they acquired, but because the core product that was acquired by the acquired company was still in development, they decided to leave out the cost synergies and focus on growth by leveraging the new company’s sales channels and capabilities in a more strategic manner. In the future, they would reevaluate whether they wanted to fully integrate R&D.

Another crucial practice that is common to successful mergers of a larger scale is to assign responsibility for capturing cost and revenue synergies over to line managers within the acquired company. This http://www.virtualdataroomservices.info/what-is-deal-flow-management/ ensures that line leaders have the right incentives and responsibilities to lead tactical execution, and it also makes it easier to monitor progress against objectives in real time. We’ve seen that it is beneficial to build the capacity for brief iterative meetings, with specific dates and goals, so that teams can realign their goals and activities while navigating through PMI cycles.