Post Merger Integration
Maximize the Deal Value
Post-Merger Integration
PMI are complex and high stakes situations, with each deal presenting its unique challenges. Yet, all successful integration starts with Strategic Alignment and Comprehensive Planning, and a well-executed PMI will unlock and realize the merger value for the new formed entity
Day Zero: From the announcement of the merger, Four imperatives must guide executives’ decisions and immediate actions
-
1 Protect existing revenue
-
2 Capture synergies and value creation
-
3 Build the new company organization, culture and process
-
4 Go beyond the integration for lasting transformation
Executing: all successful integrations start with careful Strategic Alignment and Comprehensive Planning
Strategic Alignment: Set Clear And Detailed Strategic Ambitions
- (Re)State the core reasons behind the merger — whether it’s market expansion, acquiring new technologies, economies of scale, etc.…
- Articulate the expected value unlocked by the merger, itemize by value creation opportunity and commit executives
- Align the integration with the strategic objectives of the merger
Comprehensive Planning: Drive Efficient And Slick Execution
- Define the target structure and appoint the integration team
- Develop an integration plan that covers all aspects — cultural, commercial, operational, financial, and technological
- Adapt and update the integration plan regularly as the integration progresses
- Implement and monitor value creation initiatives
Focus: in laying out the plan, focus on 3 critical success factors. Integration governance, assignment of responsibilities and monitoring of value creation
Integration Governance
- The integration governance must capture all the dimensions to be tackled yet be nimble enough to react quickly to changes in the eco-system
- The integration governance must be connected to the top of the organization but be capable of operating without disrupting the on-going existing business
- The integration governance must be ‘tiered’ to address decisions and issues at the right level and maintain efficiency
Assignment of Responsibilities
- Appointment of tier 1 executives in the new formed entity must be done within the first 2 weeks
- Roles and responsibilities must be clearly articulated and shared to ensure the business is protected while effectively managing the integration process
- Strategic and quantitative objectives must be communicated to executives and incentives models adapted accordingly
Monitoring of Value Creation
- Value creation monitoring must be established as a dedicated process
- Objectives, initiatives, timetables must be documented, measured and reevaluated all along the integration process
- Value creation is to be considered on several time horizons, from ‘Day 1’ to ‘Day 2’ and ‘Day3’
How we can help
-
Post Merger Integration Program
Design and implement full post merger program from strategic alignment to lasting transformation into a new company
-
Synergies and Value Creation Focus
Identify, drive and monitor post mergers synergies and value creation initiatives
-
Organization and Execution
Set Integration Management Office to orchestrate Post Merger effort