One of the most important aspects of successful merger acquisitions is the integration phase. Acquisition integration is often overlooked by companies until it’s too late. It can be the difference between a successful and unsuccessful deal. Acquisition integration is a massive undertaking that requires a lot of time.

A lack of M&A planning and execution has resulted in many companies not reaping the financial benefits of merging. The most common reason is a lack of commitment and coordination in the leadership team that facilitates integration processes. The first step is to find those who have the motivation and ability to effectively manage integration initiatives. This includes the M&A leadership team as well as functional teams involved in the process such as human resources, finance operations, human resources, and many other departments.

Another key element of M&A integration is to establish clear tracking mechanisms that connect the process to the P&L. This requires establishing clear KPIs that incorporate the business model of the target company, not just the acquirer’s. This will ensure that the correct measures are being tracked and the appropriate targets are established.

An integration director should be involved as soon as is possible. This can be part of the diligence process. It will increase the value of the target by identifying synergies which aren’t being realized. A good integration director can identify these opportunities and make sure that they are taken into account in the target’s value.

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