The deal may be closed after M&A transactions are completed however, if businesses fail to properly begin integration after the completion of the transaction, they could lose out http://www.virtualdataroomservices.info/effective-information-technology-ma-integration-strategy/ on a significant amount of value. Of all M&A activities that involve merger acquisition, this one is the most difficult and time-consuming to execute. A well-functioning team as well as clear communication and a solid plan are crucial to ensure the success.

Many of the issues companies encounter during integration could be prevented by pre-integration planning. For instance the integration of systems requires careful consideration of ownership of data as well as process synchronization issues. Also, IT solutions need to be designed early to enable the new unified company to quickly realize benefits. Planning should begin during due diligence and the PMI Framework should be completed prior to closing the deal. Additionally, the key to success in PMI is tracking and identifying important integration milestones that allow you to track progress and concentrate on the goals of the deal.

A common error is to integrate too much. This can devalue the value of the business by changing the aspects of the acquired business that made it attractive. Similar to this, acquisition companies often underestimate the duration it takes to successfully integrate a company acquired.

Another common error is to not assess the norms and culture of the workplace enough. For instance, if styles of two organizations are quite different there could be conflicts. To avoid these problems the company that is buying begin the assessment process during the due diligence process by bringing in some key personnel from the target company to assess their work culture and working habits. This is a useful method to determine the kind of integration strategies which will be required after the deal has been concluded.