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When M&A transactions are completed the deal could be complete, but if companies do not initiate post-closing integration in a timely manner, they risk missing out on significant value. The most time-consuming and challenging M&A activity is integration of mergers and acquisitions. A solid team that is well-functioning, clear communication and a solid plan are essential to ensure success.

Pre-integration planning can prevent many of the issues that companies face when integrating. Integrating systems, like, requires a careful analysis of issues such as data ownership processes sync, ownership of data, and more. Additionally, IT solutions must to be developed early to enable the new unified company to quickly realize benefits. The ideal time to begin planning is during due diligence and the PMI framework should be finalized prior to closing the deal. The most important factor to PMI success is to identify and track key integration milestones in order to track progress and to concentrate on the desired outcome of the deal.

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

Another mistake that is common is not evaluating working and cultural norms in sufficient detail. For example, if the culture of two firms differ there will be clashes. To avoid these problems the acquirer can begin assessing during the due diligence phase by inviting key people from the target organization to examine their work culture and working habits. This can be very helpful in determining the type of integration strategy that will be required following the closing.