M&A best practices is to involve the integration team in the Due Diligence phase so that we can understand the goals of the integration without any disconnect. How can we open the doors up to communication between the due diligence and integration teams so that we do not duplicate work and can move agilely? How could a due diligence team transfer knowledge for integration?
That is an interesting question. In our company, the due diligence team for the finance aspect of an acquistion is predominately the same team as the integration team. So it is a farily seamless transfer of knowledge.
For IT, the due diligence team is different than the integration team, but there are certain standards for security, etc that are followed so there is not a lot of duplication of work.
We also have meetings between the two teams (due diligence and integration) to discuss the pain points that each has. That has seemed to help with creating an understanding of goals.
The transfer of knowledge happens with shared file folders, although sometimes files aren’t shared timely. It’s a learning process though to see what works the best for everyone.
This is a good point and such proactive work should be put in place if possible. Due Diligence teams often speak with Management teams from both sides so such an exercise can be included in the scope of work and through these discussions evaluate the intricacies of such integration process and the priorities as well. That way if the deal goes on they have a draft integration plan in place and a preagreed roadmap of actions to complete for a smooth integration
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