M&A Integration Process, the Art and Science of Decision Making

M&A Integration Explained Roughly

4 Vs Of M&A Decision-Making Process

  • 61% believed slow speed or lack of decisions created sub-optimal value from the deal.
  • 43% shared concerns about the quality of decision-making.
  • 34% believed the slower speed of decision-making affected synergies.
  • 22% understood the differences between executive decisions in steady state operations and differences in an M&A integration environment.

Understanding the Variety of M&A Integration Decision-Making Process

Managing Decisions: Leading Practices

  • Make sure everyone on the M&A decision-making team understands the financial, operational, commercial, and legal aspects attributed to each decision or lack of it.
  • Establish good governance to enable decision rights at the right levels in the organization early in the deal cycle e.g., at the merger integration due diligence stage itself.
  • IMOs should facilitate the right decisions, by the right people using the right enablers in the M&A integration decision-making model.
  • The more dissimilar the cultures the greater the need for definitive and timely integration decisions
  • Decisions, at the right places, will enable combined problem solving, set directions, and rule out further discussions — decide up front, especially the tougher ones.
  • Establish the authority of each decision maker with clear lines of formality, interaction model, and demarcation with other decision-makers.
  • Make sure culture and ideology-based decisions are communicated widely with a proper understanding of the impact on integration.
  • Enable and staff the integration with qualified personnel with the right and relevant skills — expertise-based decisions are required in specific areas such as legal, IT, etc.
  • Understand the impact of external forces on the M&A integration decision-making model e.g., HSR, pressure campaigns, regulations, etc., and make sure the impact is well-understood.
  • The IMO should include a list of open decisions in all status reports and seek timely closure from the right people.



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