PMI – Post-merger Integration

My Focus Theme: Operative PMI Management

I support Management in chosing the right integration subjects (integration depth, “selective integration”), in defining the to-be state, performing a fit/gap analysis and identification of the appropriate measures. I gather the right people in workstreams, agree milestones and action plans, manage the project, implement initiatives and check results together with the team and report progress, successes and risks to Senior Management.

My experience from various (international) PMI-projects ensures the right level of process safety in your PMI-process.

No enterprise or business is being acquired without persueing specific goals* with the acquisition. Often, Management realizes quickly post acquisition that the committed goals cannot be achieved, or at least not be achieved within the set timeline. KPMG concluded in their M&A Study that 83% of all M&A deals do not increase Shareholder Value. A buy-and-build strategy comprises – besides the mere portfolio extension – a “build”-element, too: the (post-merger) integration aspect which determines the new sum of all parts.

*Most common acquisition goals include access to markets or technology, synergy effects in sales organization, or cost reduction through economies of scale.

Goal achievement post acquisition is no easy sledding

Structured PMI (post-merger integration) management increases the probability of attaining any acquisition goals considerably – in particular if the acquisition objectives have been determined during the due diligence phase already (a fact proven in the same KPMG study.) An continuous process from due diligence to integration will increase the success rate further. Once the M&A consultant has off-boarded, the real work commences: “Post-deal” is more than financing, GAAP conversion and PPA; effective integration requires stringent management and stakeholder involvement. In fact, KPMG found that companies mainly focusing on legal and financing matters were 15% less likely to have a successful deal.

Commonly, core integration subjects include HR (retention, harmonization), business systems (standardization and consistency), finance & controlling (GAAP conversion, reporting, synergies), business process optimization, footprint management, cultural fit, and internal/external stakeholder management.