Integration is an essential https://virtualdataroomservices.info/ma-virtual-data-room-for-specific-purposes/ stage in M&A. However it also has proven to be the hardest. A recent study revealed that M&A firms are between 12 and 18 percent less likely to think that they have the capabilities and capabilities to integrate than any other stage of M&A.

To overcome this challenge It is crucial to communicate clearly the rationale of the deal as well as techniques for integration. This will help ensure that the employees understand what is expected of them and also demonstrates how the M&A will add value to the company.

It is also essential to use best practice tailored to the goals of the deal. For instance, utilizing the same individuals who conducted due diligence for the M&A for the post-merger integration ensures continuity, eliminating duplication of effort and saving time.

Another issue is maintaining momentum throughout the process of integration. It is imperative that the team of integration join the two companies without compromising growth. This requires that the integration team has a thorough understanding of the M&A firm’s operations, so they can make decisions that have the least impact on day-to-day operations.

It is also important to establish a solid system of governance for integration to track and identify synergies. This includes forming an M&A leadership team (which should include both the organizations representatives), creating and implementing a plan of integration, and providing transparent accountability. M&As that integrate these best practices yield as much as 6 to 12 percentage points higher returns to shareholders than those that do not.