Acquisition Integration Models: How Large Companies Successfully Integrate Startups

Abstract

Mergers and acquisitions (M&A) have been popular means for many companies to address the increasing pace and level of competition that they face. Large companies have pursued acquisitions to more quickly access technology, markets, and customers, and this approach has always been a viable exit strategy for startups. However, not all deals deliver the anticipated benefits, in large part due to poor integration of the acquired assets into the acquiring company. Integration can greatly impact the success of the acquisition and, indeed, the combined company’s overall market success. In this article, I explore the implementation of several integration models that have been put into place by a large company and extract principles that may assist negotiating parties with maximizing success. This perspective may also be of interest to smaller companies as they explore exit options while trying to ensure continued market success after acquisition. I assert that business success with acquisitions is dependent on an appropriate integration model, but that asset integration is not formulaic. Any integration effort must consider the specific market context and personnel involved.

Keywords

• Acquisitions
• Company Integration
• Competitive M&A
• Mergers