Integration is one of the most important aspects of a merger acquisition. Acquisition integration is often omitted by companies until it’s too late. It can be the difference between a successful and unsuccessful deal. No matter what the objective is, whether it’s capital, cost or revenue synergies acquisition integration can be a massive undertaking and requires time and effort to complete effectively.

Many companies fail to realize the forecasted financial gains from a merger due to inadequate M&A integration planning and execution. The biggest reason is a lack of commitment and alignment within the leadership team in facilitating integration processes. The first step is to identify individuals who have the passion and experience to manage integration initiatives. This includes the M&A leadership team, as well as the functional teams involved in the process such as finance, human resources operations, human resources, and more.

Implementing clear tracking mechanisms to link the M&A process to the P&L is another important element. This ensures that the correct measures are tracked and the appropriate goals are set.

Another consideration is to engage an integration director as soon as is possible. This could be part of the diligence process. It can optimize the target’s worth by identifying synergies not realizing. An experienced integration director will spot opportunities prior to the deal closes and can help ensure they are reflected in the target’s valuation.

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