In M&A integration, it is one of the most crucial steps. It also has proven to be the most challenging. A recent survey found that M&A companies are between 12 and 18 percent less likely that they have the right capabilities and capabilities for integration than any other stage of M&A.

The most effective way to overcome this challenge is clear communication regarding the deal rationale and the integration tactics. This will ensure that everyone knows what they are expected to do and how the M&A can bring value to their business.

It is equally important to follow the best practices that are tailored to the goals of the deal. For instance, utilizing the same people who conducted due diligence for the M&A for the post-merger integration will ensure continuity, avoiding duplication of efforts and reducing time.

Another challenge is the http://www.virtualdataroomservices.info/what-is-deal-flow-management/ need to maintain momentum throughout the integration process. The team responsible for integration must ensure that growth is not lost in the process of integrating the two companies. This is why the integration team is well-aware of the M&A company’s operational processes, so they can make decisions that have the least impact on day-to-day operations.

It is also crucial to establish a solid structure for governance of integration to monitor and recognize synergies. This includes forming an M&A leadership team (which should include both organizations and their representatives) in addition to the implementation of a plan for integration, and establishing clear accountability. M&As that implement these best practices for integration could provide up to 6 to 12 percent higher total returns for shareholders than those who don’t.