The period from deal announcement through the first 100 days post close proves to be crucial to deal success. When organizations understand the interdependencies of integration initiatives and speed up the execution of these activities, ;they can stop leaving deal value on the table and start delivering greater return to their stakeholders.
Earlier in 2008, PwC invited senior management from a wide sampling of large and middle market companies to participate in a survey about their M&A integration practices. Our goal was to understand the current state of M&A integration practice and its impact on management's assessment of deal success. Only those companies which had completed a significant merger or acquisition within the past three years were asked to participate.
The results confirm what our PwC M&A integration specialists have known for some time: that early and timely execution of fundamental integration activities are directly related to capturing deal value.The period from deal announcement through the first 100 days post close proves to be crucial to deal success, with higher levels of deal performance achieved when certain integration tasks were started and completed within that timeframe. Taking initiative during this critical period leads to improved profitability, cash flow and productivity.
The old adage that 'timing is everything' has never been more true than when it comes to integrating mergers and acquisitions. The first 100 days post close is a true window for change and opportunity.When organizations understand the interdependencies of integration initiatives—and speed up the execution of these activities—they can stop leaving deal value on the table and start delivering greater return to their stakeholders.
Some of the findings of the PwC M&A integration survey report 2008 include:
Faster integration in the first 100 days post close improves profitability and cash flow
Effective communication in the first 100 days post close improves employee productivity
Integrating operating policies in the first 100 days post close helps employees focus their efforts which, in turn, accelerates positive performance
You will want to read the entire survey report to get the full story.