Inadequate post-deal integration practices are the main reason for M&A failure. DealRoom helps companies avoid common pitfalls and maximize the value of their M&A deals through the post acquisition integration process.
The sequence, focus, and pace of integration post-deal must be specifically designed to serve the objectives and value-added sources that prompted the transaction in the initial in the first. It might seem obvious, but many companies depend on generic best practices and off-the shelf plans that focus too much on processes and ignore the unique aspects of their deal.
One company has, for instance, realized that R&D offered a lot of value, but as the product that was the main focus of the acquired company was still in development, they decided to focus on growth making use of the capabilities and sales channels of the new business in a strategically-oriented manner. They would then reconsider their decision to fully integrate R&D in the future.
One of the most important techniques used to make mergers successful is to provide line managers with the responsibility of capturing revenue as well as cost synergies. This ensures that line managers are given the right incentives and responsibilities to drive tactical execution. It can also make it easier to monitor the progress toward goals in real-time. We’ve also noticed that it is beneficial to build in the capability to hold short meetings, iterative ones with specific targets and timelines to allow teams to realign and update their goals and strategies as they progress through the PMI cycle.
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