The merger and acquisition (M&A) process is loaded with risk. Overvaluation can quickly lead to significant financial losses. Talent loss can disrupt operations and weaken morale. If systems and processes are poorly understood, integration can involve unnecessary and costly challenges.
Unfortunately, typical M&A planning does little to mitigate these risks. By relying heavily on high-level strategy documents and financial projections, standard planning fails to provide the strategic intel necessary to optimize organization, collaboration, and integration. It’s an approach that fails to foster the synergies needed to drive success.
Documentation-centric M&A planning is an alternative approach that is gaining recognition for its potential to mitigate risk and deliver optimal results. Effective documentation gives companies the clarity and understanding needed to support the meticulous planning and execution that M&A demands, providing strategic advantages in all phases of the M&A process.
The shortcomings of traditional M&A planning
With traditional M&A planning, teams and the knowledge they have about business operations are kept siloed. As a result, information that could streamline and optimize the M&A process is scattered across departments. Critical details about the processes, systems, and organizational structures can’t be leveraged within the new organization because they remain undocumented or poorly organized.
The lack of empowering documentation in the traditional approach to M&A planning increases the number of unexpected issues teams must address. Integration teams must struggle to align disparate systems with no advanced warning. Conflicting assumptions lead to communication breakdowns. If key personnel exit during the process, a lack of effective documentation means vital institutional knowledge is lost, which can create further delays.
Overall, traditional systems introduce variables that extend timelines, force budget overruns, and provoke frustration among all stakeholders.
The advantages of document-centric M&A planning
A documentation-centric approach provides a solid foundation for all planning by providing a 360-degree view of both organizations involved in the M&A process. It keeps information at the core of the process, fostering a more cohesive merger that doesn’t suffer from communication gaps, knowledge fragmentation, and operational misalignment.
Proactive risk management is one of the primary benefits of the document-centric approach. The more clearly leadership teams understand potential risks, the more equipped they will be to develop strategies to mitigate them before they become issues. Documenting potential pitfalls and contingencies supports that process.
Human capital planning — which is vital in the M&A process — improves alongside the quality of documentation. Detailed skills inventories and in-depth organizational charts illuminate key personnel and key knowledge areas. This rich information fuels the development of targeted retention strategies and tailored training plans, paving the way for a seamless transition for employees.
Documentation also fuels a more streamlined integration. Comprehensive IT infrastructure documentation facilitates more efficient system integration, reducing the risk of operational disruptions. Documenting corporate cultures provides insights needed to identify potential clashes and synergies, which can inform more effective cultural integration strategies.
One of the main goals of the document-centric approach is creating a single source of truth to guide the M&A process. When well-organized documentation is available, it aligns all stakeholders — from C-suite executives to frontline employees — on goals, timelines, and responsibilities. By facilitating a unified and reliable information ecosystem, effective documentation allows everyone involved in the M&A process to speak the same language and pursue the same goals with synergy.
Implementing a document-centric approach
Technical writers play a crucial role in supporting companies that choose to pursue a document-centric M&A approach. Documentation must be comprehensive, organized, and presented in a way that articulates complex concepts in accessible language.
Technical writers bring the ability to craft persuasive narratives that align stakeholders and ease the anxiety that is normal in any season of change. They develop data dictionaries, create user guides for new systems, and document governance policies. Additionally, any visual aids they create, such as entity-relationship diagrams and data flow charts, can be game-changers in helping stakeholders navigate the new organizational landscape.
Leveraging technical writers in the documentation process also ensures messaging is consistent across all levels of both organizations. Mergers often bring together organizations with unique approaches to processes and communication. Technical writers excel at harmonizing sources to create a unified document that can speak effectively to all parties.
Relying on traditional M&A planning leaves organizations vulnerable to unforeseen challenges. A documentation-centric approach empowers a more predictable and efficient merger process with fewer surprises and smoother integration. By enabling detailed analysis, aligned communication, and the effective capture and communication of critical information, the documentation-centric approach transforms M&A planning from a high-risk endeavor into a strategic, well-orchestrated process.
– Sally Derian is a technical writer who specializes in simplifying tech ideas into content that helps businesses grow. She takes an approach that covers marketing, sales, and customer relations, effectively connecting technology with real-world business needs. With her knowledge of mergers and acquisitions, startups, and enterprise business operations, she helps tech firms communicate their innovations clearly to improve self-service options, enhance customer satisfaction, and drive digital transformation. Sally’s focus on users and data-driven tactics ensures that tech companies can effectively showcase their offerings across all business
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