Integration is where value is created regardless of what happened during negotiations and diligence. However, an acquirer can destroy a target company if integration is poorly executed. Therefore, ensuring the acquired business is in good hands is imperative. This article discusses how to execute an effective M&A integration handoff featuring Keith Crawford, Global Head of Corporate Development / M&A - State Street.
"The future performance of a business isn't reliant on any negotiation of price or terms. Instead, we want to acquire something that performs, and it's all about integration." - Keith Crawford
According to Keith, M&A transpires because companies are excited about the future performance of a business. For a business to be successful in the future, integration must be the focus of everyone involved in the deal.
The integration handoff should be done by individuals that understand how to bring the two organizations together. The goal is to ensure business continuity while maintaining the target company's integrity and core. The transaction's success depends on how well it performs under new ownership.
An effective handoff can set up a business for success. There are three must-haves of an effective integration handoff:
Some organization’s business leaders have less than ideal reasons for seeking out M&A, over-optimistic, aggressive, and defensive. Objectively understanding each business leader’s ideas and communicating with transparency is key to a good relationship.
Work to gain the business leaders’ trust and respect by helping them in their unit in the best way possible. Provide the business leaders with experts and help them address issues that arise from the transaction. Be deliberate and honest on the areas that they should be focusing on.
A dedicated business leader should continue to communicate with their team and convey the strategic vision of the transaction.