A Recognized Best Practice in M&A
By Shaun Crimmins with Midaxo
A revolutionary shift in the M&A world took place years ago. This is when deal teams began Integration Planning prior to Day One of legal ownership of the acquired company. The concept is now recognized as a best practice in the M&A process.
Forward-thinking organizations in M&A have built a repeatable process, with proven playbooks and effective technology, to guide their deal teams. Yet still, research points to “Delays and a lack of preparedness” within Integration, to explain why only 30% of deals succeed. What other factors are eroding value in M&A? This article takes aim at one of the most prevalent bottlenecks that exist in even some of the most acquisitive companies: Mindset.
Too often, organizations performing M&A are focused on “Are we going to do this deal?”. Now there is nothing inherently wrong with that line of thinking, as getting a deal to close is no small task. That mindset though has proven to be ineffective in achieving deal synergies, so we have noticed forward-thinking organizations bringing about another revolutionary shift.
These businesses have incorporated Integration thinking into their whole M&A team, and have adopted the mindset of “How are we going to make this deal work?”. Whether you are the VP of Corporate Development, or the Integration lead in M&A, this mindset needs to be your primary focus. Here are several strategies companies can deploy to incorporate PMI thinking into their M&A process.
Read full article HERE.
