If you are the buyer, you need to consider the synergies, risks, value drivers and the integration plan as soon as serious negotiations begin and well before the transaction closes. Realizing the maximum potential of a transaction poses complicated and unique challenges since no two deals are alike. Clearly defining and managing post-merger integration activities is one of the most important elements of a successful transaction.
A rigorous post-integration approach can drive the ultimate success of the deal while minimizing risk and avoiding missed opportunities and unintended consequences. For example, if the integration commands too much focus or takes too long to complete, leadership — and as a consequence, all employees — will lose focus on the primary goal of operating the business effectively and profitably.
Here are six steps that can serve as helpful guidelines for a successful post-merger integration:.
Start integration as soon as the deal is announced. You can actually begin planning the integration process before the deal is even announced. Select integration team members. Serving on the integration team will require a tremendous amount of effort from the acquired organization, creating an extremely stressful workload.
- Certified Post Merger Integration Specialist (CPMI).
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Watch carefully for signs of fatigue in the team to minimize the risk of losing key talent. Too often, integration teams fail because of the lack of a future plan for those employees selected for the team. Plan the integration structure. Specialists in the functional areas should be tasked with outlining and performing integration tasks within their area of expertise.
This will make the integration run faster and smoother, as the experts and users are intimately involved in the process. Certain cross-functional categories will require input from multi-disciplinary teams to capture desired synergies and positive results.
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Most importantly, the integration plan must be clear. Tasks and accountability for those tasks, along with specific timelines, are key to integration success. An improperly planned integration structure will lead to turmoil. Create an internal communication plan. Change makes people nervous. Employees on both sides of the transaction will wonder what the deal will mean for their respective roles and how, or if , they will fit into the new company.
The leadership teams must consider critical messaging and communication to employees, not just to shareholders and customers.
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Our suite of proven tools, as well as our deep sector expertise and proven Organizational Design and Value Activation methods allow us to enable the acceleration of an integration project:. Our global post-merger integration team advises on a wide variety of transactions, from large-scale, global integrations to mid-market, carve-out and PE-backed deals, across all our sector verticals. Life at L. The L. Career Apply The L.
Advisor Search Search. Overview Preparation is key to creating and not destroying value in an integration. PMI framework Our suite of proven tools, as well as our deep sector expertise and proven Organizational Design and Value Activation methods allow us to enable the acceleration of an integration project: Synergy realization: We combine deep industry-relevant expertise in synergy assessment, with world-renowned analytical capabilities and robust tracking tools.
Functional planning and execution: To get our clients up and running quickly, we bring industry-specific functional integration playbooks. Organizational structure and talent retention: Tapping into our Organizational Strategy practice, we can bring the latest tools and techniques to help clients develop an effective, combined organization, while holding on to its critical resources.
Program management: Leveraging a cutting-edge, cloud-based toolset and robust Value Activation approach, we ensure our clients deploy a disciplined and structured approach to integration. Mid-market deals: We bring added structure, focus and speed. We deploy deep strategic, commercial, organizational and operational expertise to help integration teams identify and evaluate synergy opportunities and develop the integration plans to realize transaction value.
What is post-merger integration? | Consultant's Mind
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