POST MERGER INTEGRATION
Successfully managing integration processes to achieve M&A goals
Merger and acquisition transactions are always accompanied by both high expectations and fears. Numerous studies have shown that more than half of all mergers fail. Objectives like gaining access to new customers, market segments or know-how, benefiting from synergies or securing access to important resources are often only partially achieved, if at all.
In most cases the failure is not due to the wrong choice of a merger candidate or to inadequate preparation prior to the transaction but to unrealistic target setting and the lack of project management in the post-merger phase. Moreover, the challenges of different corporate cultures clashing are often underestimated. In a cross-border acquisition, companies are often also faced with intercultural differences. In addition, no two mergers are ever the same, with the type of merger varying from a hostile takeover or a battle between white and black knights, through the complete absorption of companies to a merger of equals.
As a result, it is vital to the success of corporate integration that the starting position, the environment and the motivation of the merging companies be considered.
Post Merger Integration with Horváth & Partners: Our service portfolio
As much as the decision for an acquisition should be based on a sound evaluation in the due diligence phase, it is equally important to define a clear integration strategy and pursue it rigorously after the deal has been closed. Our post merger integration approach at Horváth & Partners provides the required balance of initial short-term measures for the immediate post-closure phase and long-term positioning of the new organization aimed at a growth-oriented transformation and clear value proposition:
- Identification of synergy potentials and planning for the integration phase.
- Development of an integration strategy and a PMI scorecard for periodical monitoring of results.
- Continuous program, risk and transition management.
- Support for functional teams working on the integration.
The Horváth & Partners PMI Approach
During the planning phase you need to define concrete targets and a transparent appraisal system with earnings-based performance indicators (PMI Scorecard). The design and integration phase consists of implementing the 100-day plan, which deals with determining and designing the integrated processes, organizational structures and technologies of the merged companies. The subsequent reorganization and optimization phase focuses on aligning the transformation processes and systems modifications for the long-term.
We will accompany you through all the phases as your personal integration manager. Indeed, we will actually start working with you long before the real "Day 1" – the day you close the contract – by evaluating synergies and setting up program, risk and transition management for the integration project. As experienced integration managers, we will provide support for the functional units within integration implementation and develop structured solutions for operative and organizational measures.
Our recommendation: make or break – you only get one shot at a PMI!
You have to act quickly, because although a post merger integration cannot be carried out overnight, many measures are critical in terms of time. Don’t wait too long to contact us so you can profit from our competence and experience in all the PMI phases. We will support you as integration manager and, if desired, will implement concrete integration projects with you and your employees.»superimpose
Do not hesitate to contact us for references!