M&A deals that fail usually due to poor post-deal integration. DealRoom helps businesses avoid common pitfalls, and maximize the value in their M&A transactions by assisting in the post-acquisition process.
Focus, sequencing, speed, and concentration of post-deal integration should all be tailored to the objectives and sources that substantiated the deal. It sounds simple, but we see many companies fall back on off-the-shelf plans and general best practices that overemphasize processes and ignore the distinctive elements of their deal.
One company was able to recognize that R&D was a significant source of value, however, since the primary product of the acquired company was still under development, it decided to focus on growth instead using the capabilities and sales channels of the new business in a strategically-oriented manner. In the future, they would reevaluate whether they wanted to fully integrate R&D.
One of the key techniques used to make mergers successful is to assign line managers the responsibility of capturing revenue and cost synergies. This ensures that line leaders receive the appropriate incentives and responsibilities to drive the tactical execution. It helps to http://www.virtualdataroomservices.info/best-data-rooms-for-fund-raising/ monitor progress towards goals in real-time. We’ve observed that it’s beneficial to build the capacity for short meetings that are iterative, with clear deadlines and targets, so that teams can align their goals and work as they move through PMI cycles.