The excitement of negotiating an agreement is one of the most exciting aspects of M&A. But, it’s only the beginning of a long road to successfully integrating the new entity, and delivering on the promises of financial returns.

Acquiring companies typically evaluate their deal’s success against goals of synergies and revenue growth that they had set for themselves prior to making the acquisition. The acquirer believes that they have added value through M&A when these goals are met, or exceeded. But the reality is that these successes typically come at a cost to the current business momentum and efficiency of operations.

In order to avoid this, the businesses that are acquired should ensure that they have a clear and established integration plan in place before the transaction closes. This process should include detailed due diligence to assess the feasibility of the plan and to ensure that the necessary resources are available.

A management team ‘deal champion’ who proactively guides the deal process to completion and collaborates with advisers during the assessment phase is essential. This can help avoid the error of losing interest in the M&A process, which can result in deals falling over in mid-process.

In order for companies to acquire companies to speed up and improve their M&A processes, it is crucial that they have the proper understanding of the capital markets. With PitchBook’s accurate and unbiased data, companies are able to better substantiate valuations, focus conversations and drive efficient M&A processes.