M&A deals that fail mostly due to poor post-deal integration. DealRoom assists companies to avoid common mistakes and increase the value of their M&A deals by helping them through the post-acquisition integration process.
The focus, sequencing, and pace of integration post-deal should be explicitly tailored to serve the objectives and sources of value that led to the transaction in the first in the first. That sounds obvious, but we see many businesses fall back on off-the shelf plans and general best practices that overemphasize process and ignore the distinctive elements of their deal.
One company, for example, recognized that R&D was the main source of value when they acquired however, as the core product of the acquired firm was still being developed, they decided to not take advantage of the cost synergies, and instead focus on growth by using the new company's sales channels and capabilities in a more strategic manner. In the future they'd consider rethinking whether they wanted to fully integrate R&D.
One of the key strategies for successful mergers is to give line you could look here managers the responsibility of capturing revenue and cost synergies. This ensures that line executives have the right incentives and responsibilities to lead the tactical execution. It is also easier to track the progress towards goals in real time. We've observed that it's beneficial to set up the capability to hold short, iterative meetings, with specific dates and goals, so that teams can align their goals and work as they move through PMI cycles.