- This topic has 8 replies, 9 voices, and was last updated 1 year, 5 months ago by Michel Kropf.
August 27, 2021 at 9:31 am #36344Michel KropfParticipant
Following and M&A, how long do you need to complete the integration phase? In other words, when can you say that integration is fully complete? Are there specific indicators to monitor?September 10, 2021 at 8:42 pm #39040Greg JessupParticipant
It is important to have an end when managing any project. I am new to the integration role. I am currently going through the exercise of identifying the end for me. Right not I have defined that as hosting a grand reopening event approximately 90-120 days after close. This gives me time to conduct any necessary additional trainings and properly pass the business off to the operations team.September 13, 2021 at 9:59 am #39049Hanen DadaParticipant
I believe the time depends on the size of the merger. larger companies will require more time. with that being said, if you have a detailed plan, the integration will end when you complete the plan.September 22, 2021 at 1:37 pm #39060Manuela van UlzenParticipant
Being also new in the role and just started with an integration planning, I am calculating about 12 month to complete the integration.
This sounds a lot however you have to implement your new operating model in all the different departments, hire new people, change employee contracts etc. I think this will take a while. However, as also mentioned in the training, you have to show quick wins and first synergies early in the process to keep people engaged and motivated.September 29, 2021 at 1:36 pm #39081Boon Hon LowParticipant
In my view, I would want the PMI activities to complete as soon as possible so that the combined organisation can settle in BAU. However, I do appreciate that time is needed especially on the people side of things.October 1, 2021 at 1:34 am #39086Aaron TeoParticipant
I think the key question here is what is the size of the transactions that are being invovled here that will give a pretty good idea. Based on my personal experience, I have been part of an integration project subsequent to acquisition. In view of the complexity and the restriction of the type of industry with profound impact, the integration process where I was part of, took many years even though acquisition was completed some time way back.
With huge acquisitions, there are much more structure and communications, henceforth, all these are tracked on a weekly basis via the PMO till completion. Henceforth, it is more well defined.October 4, 2021 at 11:53 am #39102Sylvie Gallou GeoffrayMember
I would say 12 to 18 months depending on complexity… some items can be very long term and ongoing…but the big items the 80/20 needs to be done within that 12-18 months timeframe. Systems changes, physical moves all can take a long time.October 4, 2021 at 1:13 pm #39104Sam CheeParticipant
I think it depends on the complexity and heterogeneity of the target company compared to the acquiring company. For example, a large national coffee chain acquiring 1 local cafe could be easily absorbed (by standardizing systems and processes – such as point-of-sale system, type of suppliers to use, etc.) – as compared to acquiring a similar-sized target company operating in another geography and industry or segment (e.g. fast food restaurant chain) which the acquiring company has no or little commercial experience in.October 4, 2021 at 8:40 pm #39108Ali Ahmed AlshehriParticipant
Complexity is certainly a factor, however, in my opinion, regulatory approvals can be time-consuming and sometimes determinant of the whole process specially in cross-border transactions. The good news, with proper sequencing of filing and due diligence activities, the lead time can be minimized.
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