“M&A integration is a complex, multi-dimensional project that often doesn’t get the level of attention it requires,” Galina Wolinetz said on M&A Science Live: Why is M&A Integration so Hard? To view the webinar, click here.
“Without the necessary structure and rigor, integration efforts can fall short and the acquiring organization won’t realize the full value that was envisioned,” Galina told Kison Pate, CEO of DealRoom.
“The corporate development team needs to be connected to the integration team in a meaningful way as partners helping to facilitate each other’s activities throughout the entire life cycle of the transaction–from strategy through post-merger integration,” she said. “If possible, the corporate development team continues to stay in involved so they have real skin in the game as far as how the integration performs.”
The integration program should aim for a flawless Day One for the new business, Galina said. “I am a big believer that Day One is the most crucial day for an acquisition, and so it’s the most crucial thing to get right in the integration program. It absolutely sets the tone. There’s so much uncertainty around the integration program for all the stakeholders involved, including employees, customers, suppliers, investors and so forth–because change can be hard and lead to anxiety. You want Day One to prompt them all to take a sigh of relief and think, ‘Okay, it’s not going to be that bad.'”
For a summary of Virtas Partners’ approach to M&A integration services, click here.