The deal might be closed at the time M&A transactions are complete however, if companies fail to properly begin integration after the close of the deal, they could lose out on a significant amount of value. As with all M&A activities that involve merger acquisition, this one is the most difficult and time-consuming to execute. A well-functioning team, cohesive, clear communication, and a sound strategy are all necessary for success.

Many of the challenges that companies face during integration can be avoided with pre-integration planning. For example, integrating systems requires careful consideration of the ownership of data processes synchronization and other issues. Also, IT solutions need to be designed early to enable the new unified company to quickly realize benefits. The ideal time to begin planning is with due diligence and the PMI framework should be completed prior to closing the deal. The crucial element to PMI success is to track and identify important integration milestones to track progress and concentrate on the desired outcome of the deal.

One of the most common mistakes in integration is to incorporate too much, which can destroy value by fundamentally altering the aspects of the acquired company that made it attractive initially. Acquisition companies often underestimate the time required to successfully integrate a newly acquired company.

Another common error is not evaluating culture and working norms thoroughly enough. Conflicts can arise if, for instance, the working practices of two different companies are quite different. To avoid this the buyer can begin the assessment during the due diligence stage by inviting key individuals from the target company to evaluate their work habits and the culture. This can be a useful way to predict the kind of integration strategies that will be required following the deal is completed.

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