When M&A transactions are completed the deal could be completed, but if companies fail to initiate post-close integration in a timely manner, they miss out on a significant value. As with all M&A activities that involve merger acquisition, this one is the most challenging and time-consuming to execute. A well-functioning team, with a solid structure, clear communication, and a sound plan are all vital to success.

Many of the challenges that companies face during integration can be avoided by planning for integration in advance. For instance when integrating systems, it is important to take careful consideration of ownership of data, process synchronization, and other issues. Additionally, IT solutions must to be developed early to enable the new unified company to rapidly reap the benefits. The ideal time to begin planning is during due diligence and the PMI framework should be completed prior to closing the deal. Furthermore, the key to success with PMI is to identify and track important integration milestones to monitor progress and keep an eye on the goals of the deal.

A common error is to integrate too in. This can devalue the value of the business by altering the aspects of the acquired business that made it attractive. Additionally, companies who acquire underestimate the amount of time needed to successfully integrate a company acquired.

Another common error is not assessing culture and working norms in sufficient depth. Conflicts could arise if for instance, the working practices of two businesses are completely different. To avoid problems the acquiring company can begin the assessment during the due diligence phase by bringing key people from the target company to assess their work habits and cultural. This can be very helpful in determining the type of integration strategy that will be required when the deal is completed.

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