Mobilising Your M&A Integration
In my last blog, I discussed how to achieve growth during M&A integration. Now I’ll explain how to put your post-merger integration strategy into action.
23 March 2016
In this series, Intralinks has partnered with Danny A. Davis, an expert in post-merger integration. Danny is a director, writer and speaker, whose book “M&A Integration: How to Do It. Planning and delivering M&A integration for business success” is used by business schools and companies around the world. In this second installment, Danny discusses how to mobilize your post-merger integration.
In my last blog, I discussed how to achieve growth during M&A integration by focusing on improving sales force consolidation, compensation planning and cross-sell and upsell opportunities. In this post, I’ll explain how to put your post-merger integration (PMI) strategy into action.
A common question I get from corporate development teams is at what point in the deal lifecycle they should start implementing an M&A integration process. The short answer: as early as possible. Timing, education and delivery are critical. Let's explore some steps and best practices you can follow.
Timing of the integration is critical — the earlier you begin, the earlier you can deliver on projected synergies. Every moment can mean additional profit. Integration planning should start many months before the deal is closed, with team mobilisation typically beginning once the deal is announced. Creating a detailed Gantt chart to map out the timeline can be an invaluable tool.
Educating Your Team
People are the key to delivery. The integration team needs to know and be comfortable with what they need to deliver and how their deliveries interact across other workstreams. Coordinating a broad pool of cross-functional teams is challenging, but critical to success.
An efficient way to manage this complex process is to define a clear set of integration goals and match numbers (synergies) with people. For example, set a goal that the Director of IT needs to deliver £X in synergies within 180 days after the deal is closed. With measureable goals like these, you can hold people accountable for milestone achievement and that drives results.
Timing, education and delivery are imperative for having a successful M&A integration process.
Stay tuned for my next blog installment, where I’ll explore best practices around delivering synergies in M&A integration.
Danny A. Davis
Danny A. Davis is a director, writer and speaker. Throughout his career, his experiences have included pre-deal integration planning on a 50,000 person purchase of a 25,000 person company a $6bn global deal running the European side across 30 countries, 250 business units, 26 functions, training over 100 companies on M&A integration and coaching a global telco through all its deals.