An acquisition can be a valuable strategic tool to increase market share, increasing capabilities, or leapfrogging competitors by leveraging cost efficiencies. However, many acquirers fall short on integrating their new entities with their existing business which could have negative effects for the long term. This article discusses the crucial success factors in merger acquisition integration (PMI) which will ensure a high-performing and successful integration.

PMI http://www.virtualdataroomservices.info/what-is-deal-flow-management should start with a clear and concise definition that can translate the “why” of a deal into quantifiable objectives for integration and specific plan(s) for each functional area, such as cost- and revenue-related synergies. PMI should also consider the cultural compatibility between the target and acquiring companies as well as the particularities that may be inherent in each deal’s specific circumstances (e.g. the company’s vertical industry or business stage).

A major point of focus during PMI is ensuring that the CEOs of both companies commit the majority of their time to their core activities and place a high priority on customer/stakeholder engagement. To achieve this, Hess recommends identifying the experts and problem solvers within the team of the target company – the people other employees turn to for assistance and assigning them to an integration task force. These leaders can help reduce stress and increase morale/buy-in by showing the acquired company their commitment to leadership.

While playbooks are not ideal for the fluctuating/irregular world of M&A, a basic framework and game plan can be helpful. To download a copy of the integration checklist, go to our free resources page.