Play the Hand You Are Dealt
This is part of a short series of postings that discuss how integration teams must accommodate the set of criteria they are given by the Deal Team – those that carries out an acquisition.
Part 2 Getting Time to Plan
If you are playing cards, the more time you are given to think about how to play your hand, the better the outcome will likely be. Similarly, the earlier the Integration Team is brought into an acquisition, the better they can perform. They will have more opportunities to deliver the vision of the combined, merged business that the Deal Team envisioned and modeled.
Earlier is Better
Having the Integration Team join during the Due Diligence phase is advantageous: it gives time to assess and plan as the value propositions are being validated and adjusted. The Deal Team can leverage the experience of the Integration Team to more accurately finalize the operations and finances of the post-integration business.
Having the Deal and Integration teams work side by side allows the latter to clearly understand the vision for the deal, and hence better plan its delivery.
Which is the greater cost:
- Bringing in the integration team 2 weeks earlier
- An acquisition that fails to achieve its target revenues?