Speed of Post Merger Integration?

This topic contains 5 replies, has 6 voices, and was last updated by  JIANXIANG CHUA 4 days, 2 hours ago.

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  • #114688

    Karl Heinz Foertsch
    Participant

    Is it advisable to conduct the post merger integration at a “fast speed” or to do it slowly?
    Benefits from financial synergies require speed but what about more intangible synergies like knowledge transfer or Human Resources topics?

    #114778

    Rodney Satterwhite
    Participant

    I am a firm believer in seeding elements and getting buy in through solid communication strategy in an efforts to build momentum an seed cultural focus.

    #114789

    Different kinds of M&A will follow different kinds of PMI strategies. For Instance, if a company is acquiring a tech company because of its niche product or R&D capabilities, then the PMI activities should be carried out carefully (with solid communication strategy, as mentioned by Rodney). Senior management should also be prepared to make the call about what to integrate and what to leave alone.

    #114797

    Interesting question and I tend to agree with Muhammad, a PMI (and therefore the timeline of it) should be tailored to the specific situation at hand. Is the target company relatively small? Does it have a unique culture and what is the previous owner’s continued involvement? How valuable is the brand and is there an earnout which would suggest a certain standalone continuation of the business for 1-3 years?

    #114878

    Sarah
    Participant

    The PMI strategy may vary depending on leaderships goals/visions for the target company. Is this a company we want to fully integrate or is this a company we want to keep as a standalone entity? I think in either approach communication is imperative to accomplish the intended outcome. The PMI strategy can vary by industry (as stated by Muhammad). In healthcare, a people service industry, a slower PMI strategy might be advised because without patients there is no money.

    #114944

    JIANXIANG CHUA
    Participant

    Agreed with the different kinds of M&A will follow different kinds of PMI strategies

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