In order to institutionalize such important aspect, & to retain the corporate memory, we as an M&A department are collaborating with the Center of Excellence in Aramco Corporate Development Organization in order to capture the lessons learned from the previous transactions. Those information are feeding the M&A toolkit that is currently being developed to facilitate & deliver multiple aspect, one of which is this crucial element.
Especially for financial sponsors embarking on ‘roll-up’ strategies, we saw that there is in fact a ‘programmatic’ approach to doing successful value-accretive M&As. The acquirer would need to assemble an experienced and dedicated M&A / PMI team that have a deep understanding of (1) type of company to acquire that delivers strategic and financial value, (2) likelihood of achieving the desired synergies from the acquisition, (3) potential risks and worse case scenario that could happen from making the acquisition, (4) have a strong ability to unlock value and realize synergies from the acquisition. With an experienced and consistent M&A / PMI team in place, the approach to M&A can be institutionalized and applied across future acquisitions.
Having a repeatable “Lessons Learned” process in place can certainly support further refinement of your “Best Practices” for M & A. We review key findings from the Lessons Learned to determine the best place to incorporate feedback. As we strive to continuously improve the overall process and depending on the feedback/suggestions provided, we may incorporate it into our M & A playbook(s) and/or Due Diligence or Integration planning/Execution process. For example, we may add it to the Integration Planning Framework or update templates and/or checklists that are used in various phases of the acquisition integration or due diligence.