When M&A transactions are completed, the deal may be completed, but if companies fail to implement post-closing integration correctly, they could be at risk of missing out on substantial value. The most time-consuming and challenging M&A task is merger acquisition integration. A well-functioning team with clear communication and a solid plan are essential for success.

Many of the challenges that companies confront during integration can be avoided through pre-integration planning. For example the process of integrating systems requires careful consideration of the ownership of data as well as process synchronization issues. Additionally, IT solutions have to be designed early to allow the new company to rapidly reap the benefits. Planning should begin with due diligence and the PMI Framework should be completed prior to closing the deal. The most important factor to PMI success is to determine and track key integration milestones in order to monitor progress and concentrate on the goal of the transaction.

A common mistake made in integration is to integrate too much, devaluing value by fundamentally altering the aspects of the acquired company that made it attractive in the first place. Acquiring companies often underestimate the amount of time needed to successfully integrate a newly acquired business.

Another mistake made is not assessing culture and working norms in sufficient detail. Conflicts can arise if, for example, the cultures of two different companies are very different. To avoid this the acquirer could begin the evaluation at the due diligence phase by inviting key individuals from the target company to assess their work practices and culture. This is extremely useful in predicting the type of integration strategy that will be needed when the deal is completed.

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