ABSTRACT
This chapter presents the case that effective mergers and acquisitions (M&A) integration and deal success begins not after the deal is done, but well before the deal is closed. Once a thorough strategic 'self due diligence' has been conducted and the desired characteristics of potential target companies are identified, management can then determine the integration priorities required for each deal they conduct on a case-by-case basis. Companies can mitigate integration risk by approaching their mergers and acquisitions process more comprehensively and treating due diligence and integration as a continuous process. Galpin and Herndon identify six stages of the M&A process: Formulate, Locate, Investigate, Negotiate, Integrate and Motivate. An effective integration effort encompasses each of these six deal stages, starting when management establishes the firm's M&A strategy, locates companies which fit that strategy and this process continues well into the integration and workforce motivation phases of the deal process.
