Merger Integration Checklist – Additional Points Points Not to Miss

merger integration checklist

This article will provide you with the merger integration checklist for professional services firms to put your people at the first, and the most important place.

What Not to Miss in Merger Integration Checklist?

After a merger or acquisition, most executives focus on measurable integration milestones such as cost reduction and efficiency gains. While that’s all well and good, I’m going to take it a step further and suggest a slightly new prioritization of tasks – why not put your people first? At the initial stage of preparation for an M&A transaction, the company chooses the method of the upcoming integration.

The first item on the M&A integration checklist has to do with leadership. In particular, you will need a full-time manager (from the acquiring organization) to manage the integration. Appointing a manager at the helm seems obvious, but it’s often one of the most overlooked issues because organizations think they can just put him in their day-to-day responsibilities and set up a project management office.

The more deeply the company’s management understands the characteristics of the merger integration checklist, the less the degree of uncertainty for strategic planning and operational management. And the more likely it is that the capital will be used in such a way that the company will look competitive in the market. All assets and liabilities of the former companies become the property of the new entity. For the successful completion of the transaction on the consolidation of the company, the shareholders of each company must give their consent.

Preliminary Evaluation of the Transaction with the CRM for M&A

A merger integration checklist is a comprehensive study of an organization that is the object of an M&A transaction. Conducting due diligence is usually carried out before the conclusion of the transaction, since negative aspects may be revealed in the process. This study provides reliable information about the feasibility of investments and possible legal risks. The results of the study will allow managers to make effective strategic decisions. A friendly merger is, first of all, an agreement between the management team of two or more companies participating in the transaction.

Mergers of companies are a set of actions aimed at increasing the value of common assets with the help of achievements from joint activities. Acquisitions and mergers of firms are, in simple terms, a combination of two firms. A merger is the origin of one company from two equal ones, and an acquisition is a buyout of one company by another.

The CRM for M&A of transactions are concentrated in five global sectors:

  • technology;
  • healthcare;
  • real estate;
  • finance;
  • telecom.

It should be noted that when intuitively defining a merger integration as mature, investors first of all compare the general position of the company with the criteria for the possibility of classifying it as a start-up, a company in the growth stage, or a company in the decline stage. The main purpose of identifying the stage of maturity of the company is to increase the investor’s readiness for the risk of no growth in the value of the company due to the growth of its size in return for ensuring the receipt of current dividend income, as well as the need to prevent the allocation of financial resources in businesses with symptoms of stagnation.