Post-Merger Integration Survey 2017
Communicate clearly and regularly with internal and external stakeholders
Involve senior management in the integration team
Have a dedicated integration team
Establish a faster pace of integration, defined roadmap and achievable milestones to build momentum
Our Post-Merger Integration Survey 2017 uncovered major pitfalls and opportunities in an integration scenario, as experienced by various deals professionals and executives.
Comprising diverse points of view across different industry sectors, this report provides a perspective on post-merger integration experiences in India. Through this report, we aim to highlight how adequate focus on post-deal integration activities by dealmakers can unearth latent value and help in achieving the desired objectives from deals.
A sharp focus, strong commitment and customised approach are required to overcome the challenges in integrating business operations, and thus, optimising the value of a transaction.
The survey respondents identified employee expectations, organisational culture and IT integration as the top factors responsible for integration complexity.
Nearly 70% of the respondents stated that revenue synergies were more important than cost drivers.
While revenue and growth targets are the major drivers in a deal, expectedly, respondents have reported a higher percentage of achievement in reaching cost reduction targets.
40% of the respondents did not have any formal approach for synergy realisation, while 50% said that they tracked synergy metrics with the functional owners but in an ad-hoc manner.
Overall, 70% of the respondents felt that, going forward, the integration process should ideally commence during the negotiation or due diligence stage.
More than 30% of the respondents did not conduct comprehensive due diligence in operational areas such as sales, operations, HR and IT.
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