According to BMO Capital Markets in Chicago, mergers and acquisitions in the global packaging industry last year and the first half of 2007 have rebounded to levels not seen since 2000. There were 181 transactions around the world in the first six months of this year—on par with the same period in 2006. Flexible packaging and paperboard, with 30 percent and 15 percent respectively, generated significant deal volume. The pending union of Graphic Packaging and Altivity Packaging is only one example, while the next six months' biggest deal just might be a buyout of Alcan's packaging business by Bemis.

On the flip side, though, many M&As are failing to deliver real value to shareholders, says a new report by The Conference Board, the New York City-based group responsible for the highly touted Consumer Confidence Index and Leading Economic Indicators. From a survey of 86 M&A executives, they learned that many companies are both structuring and formalizing their merger integration practices to avoid pitfalls and better manage the process.

It's like having a well-oiled “integration engine,” they say. Among the advantages: Knowing what worked well is highlighted, and what needs improvement can be improved. This kind of overwhelming task is made more transparent, too. Clear objectives for the M&A integration help companies communicate the mission more effectively, and help defuse the political concerns that inevitably come up.

Other determinants of integration success: The more similarities there are between the acquirer and the target firm; the earlier the integration program gets started, the better the end results typically are; and the larger the buy—targets over $1 billion in sales, for example, because they are led more often by senior management.

Contemplating an acquisition? Remember, it's not just the deal negotiation and the due diligence before the final papers are signed. It's the right integration after the buy that can make the difference between just getting bigger and gaining real value.

It's only common sense: This month we introduce another new column to Converting's mix of industry and technical information. “Common Sense Flexo” will feature regular excerpts from the new book by David J. Lanska. This guide to improved pressroom productivity, published by PIA/GATF, covers everything from the ink train and anilox rolls to quality, safety, the environment and management issues. And check out Joe Flexo on page 20. He's always ready to make a point worth remembering.