Capturing the value of a complex merger deal is never easy, but for such value to be captured quickly and well, integration plans need to be completed before the deal is closed. Unfortunately, regulations in the United States and other jurisdictions do not allow sharing competitively sensitive information prior to deal consummation, which is critical to a rapid and well-thought-out integration plan.
Over the past few years, however, more businesses are making very effective use of the period between regulatory filing and the close of the deal to organize and leverage “clean rooms” as a way to bring together data from all parties in a physical or virtual repository. They are then deploying “clean teams” that are charged with accelerating the speed and quality of integration planning. These teams have access to all organizational data in ways that are fully compliant with antitrust regulations in the Hart-Scott-Rodino Act of 1976.
When correctly deployed, clean rooms and clean teams will reduce transaction costs significantly, quickly identify increased revenue opportunities, realize cost synergies, increase shareholder confidence, and streamline merger processes for employees and systems.
Click here to download this POV.