We are seeing a dramatic increase in back-to-back and simultaneous mergers and acquisitions as companies look to accelerate market growth, technological innovation and product capabilities. Here we address how to manage the three biggest M&A integration challenges as companies balance competing deal and business transformation priorities.
The key is to develop an integration model that functions across multiple transactions, addresses increased complexities and stakeholder needs, and of course, drives deal value.
Challenge one: Coordinating governance of M&A deals with business transformation
Companies undergoing significant business transformation are increasingly engaging in simultaneous M&A deals to seize growth opportunities. However, pursuing complex new product launches, system changes or facility consolidation, for example, while executing multiple transactions, can be daunting with finite resources.
Leaders can prioritize and effectively manage competing priorities with a governing body, the integration management office (IMO).
- The IMO can improve pre- and post-close planning and collaboration based on each deal’s investment thesis and existing transformation initiatives.
- The latest IMO tools, using real-time data analysis, can track and measure deal assumptions, interdependencies, integration progress, realized value and ongoing risks, and leverage road maps to extract full deal value.
A singular IMO may work for leaders conducting multiple deals. However, depending on geography, timing and business unit for multiple deals, multiple IMOs topped with a transformation management layer may work best.