PMI vs M&A: separate teams?

This topic contains 8 replies, has 9 voices, and was last updated by   8 months ago.

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  • #114810

    Dear all, I’d be very interested to hear if at your companies you have separate M&A and PMI teams, or if the same team assumes responsibility for both? I’d also be interested in how many members these teams have. Thanks

    #115286

    Luka Mladinov
    Participant

    I worked for a Big 4 in the Transaction Advisory Services. We had separate team for M&A and PMI. Evan within PMI team we had specialized teams to cover different aspects, such as Legal M&A, IT M&A, HR M&A, etc. Each team had clearly defined scope and responsibility. We had regular bi-weekly cross-team meetings to keep every one up to date with key developments.

    #115824

    Ian
    Participant

    Hi

    I have seen both models…often an internal corporate M&A function makes sense to have a close collaboration and shared resources across pre and post deal, however my experience from the Advisory/Consulting side is these team are very different and separate. Pre-deal tends to follow short sharp engagements focused on different metrics, largely DD, FDD, valuations etc…the post deal practices are often in for the a longer period, with expertise in finance to identify and track synergies combined with complex programme management and change management skills to deliver the IMO services and increase the probability of delivering deal value.

    Many thanks

    #115859

    Mauricio Weissberg
    Participant

    Hi guys!!!
    In my point of view there are two aspects to be consider, and I agree with Ian with the M&A team focus, but the PMI team have to have as a central of the given environment, the employee.
    Moreover, the success to add value to the deal lie in a deep HR DD pre-merger, where culture, value and ethical issue will be focus.

    #116627

    Thomas Teltscher
    Participant

    I think there should be some overlap between the two teams in order to ensure continuity along the process. Certainly, different people will be involved to a different degree during pre- and post-merger phases, but I think it is important to ensure that their is not a complete cut as information may be lost.

    #116820

    Elizabeth B
    Participant

    We have some overlap, but certain team members are specialized in different areas. There is transitional content and supporting meetings to ensure knowledge is transferred.

    #116860

    David Castell
    Participant

    From my point of view, the activities to cover on the M&A or the PMI do require different skills, that I would rather go with separate teams, or at least with one dedicated persons for each activity. An early involvement of the PMI responsible person (or team) into the M&A process might be an advantage regarding alignment on decisions and initial M&A intentions.

    #117129


    Participant

    Fully align with the above. The M&A team and the PMI team require different skills. In order to make a fluent transition from M&A to PMI phase, it is essential to involve PMI team members in the M&A phase.

    #117139


    Participant

    In my mind, it depends on the size of the acquisition. For very small acquisitions one team may play different roles provided they have the skills and expertise to do different types of work at different times during this process. Generally, however, it would seem to me that there should be 2 separate teams working in tandem from as early in the process as possible would be the best bet. This is because of the skill set difference and the need to have dedicated team members.

    In one of my previous company, we had separate M&A team and Project Management teams assisting with the process.

    The role of the Line management is also very important to one hand keep the lights on by ensuring that the BAU activities are being carried out per plan but also modified processes are also being incorporated. I would also depend on them to do the bulk of the Change Management with their team members.

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