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in your opinion, when should M&A team start working in the integration plan ?
for me , I think as soon as they finalized the Due diligence.
I’d recommend as early as possible in the due diligence phase, but some sellers don’t want to talk about integration too early as they want more deal certainty first to avoid wasting time.
The best phase for the project to start is when a company makes acqusition announcement and when the due diligence phase is in planning
We typically begin during the Due Diligence phase and prior to close. We have found this shortens our integration timeline by getting a jump start on a deal we know is moving to close.
I agree with Laura, the M&A team should start working on the deal specifics in tandem with the Due Diligence phase to retain the competitive advantage of being ahead of the integration timeline.
I think Integration needs to be divided into three steps. First is the concept of integration which shall be made during due diligence time. Once deal is done, after that concept shall be finalized and kicked off for implementation.
High level planning should start already at the due diligence phase to make sure integration risks are identified and considered when the deal is put forward for approval. Once the deal is approved and towards signing/closing more detailed planning should be done especially with a focus on Day1 activities and priorities. Once the deal is closed and the integration execution begins it is also important to keep flexibility to adjust to new information and developments that can only be known after the deal closes.
I have found it to be very beneficial to begin integration planning during the Due Diligence phase with the internal workstream leads. Many decisions can be made post announcement and once the announcement has been made, you may have the opportunity to interact with at least some of the top level leadership of the acquired company. Having the integration strategy in place prior to close positions you to begin working on the integration immediately post close.
I think the best time to start an integration plan is as early as possible, so during DD, if that is practical in the acquisition.
Many decisions on how the post-announcement entity will need to change can be made early, and starting this thinking and conversations early will increase the chances of post-announcement success.
Obviously not many employees will be able to be included, so lists of any open questions should be created that can be answered more fully once every employee (e.g. departmental managers) are made aware of the acquisition via the announcement.
Fully agree to start the integration plan as soon as possible. With a growing level of granularity throughout the process.
Starting with some larger blocks (plus roles and responsibilities) at the start of the DD, and digging deeper and deeper into detailed actions, timings and milestones;Great question. Integration should be a part of DD, with the planning aspect gathering momentum nearing end of DD.
However, I think integration PRE-planning would be a tremendously helpful tool; keeping an integration planning lens on throughout the process, as opposed to thinking about integration at/near the end of the transaction process. Human psychology and group dynamics are very real; I think if integration planning is only evaluated at/near the end of the process, a transaction would likely take a life of its own and momentum would be too high to walk away/raise concerns (“deal heat”), basically forcing a shoe that does not fit.
I like how David put it as well, a very effective and practical approach.
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