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Post-Merger Integration and Carve Out – Designing successful corporate integration and separation projects

Occasionally, changes on the market can have such a strong impact that companies are forced to adjust their strategy in line with new trends and requirements and to realign their business model accordingly. Often, buying up other companies or selling off own divisions which are no longer strategically relevant are promising possibilities for reacting to new market conditions.

When this does happen, companies frequently face enormous organizational and structural challenges which go hand-in-hand with a post-merger integration of company structures, especially as it is expected to generate synergies for financing, or with a separation or carve out of structures with the aim of setting up independent business models. It is not rare for inconsistent planning and execution to destroy the desired transaction value instead of increasing it.

The aim of a post-merger integration (PMI) has to be to structure complex integration processes effectively and thereby create synergies in order to satisfy the high expectations which always accompany a merger. The following criteria must be satisfied in order to carry out a PMI efficiently: Agree realistic goals, define a consistent, new business model, and set up strict project management with focused communication to all stakeholders.

When carving out companies or parts of companies, the challenge lies in clearly identifying the shared structures and processes of individual organizations and then separating them cleanly. Here, it is important to allocate shared resources systematically, to separate IT and infrastructures consistently, and to check remaining contracts to see if they are still viable and effective. The goal must be to ensure the sustainable integrity and functionality of the remaining business models.

We support companies in the systematic concept design of their new business and organization models and in the pragmatic realization of synergies and cost-saving potentials. Together with our client, we develop a stringent and manageable procedural model and ensure the financial goals are firmly anchored in their company’s performance management system.