Speed of Post Merger Integration?

This topic contains 16 replies, has 17 voices, and was last updated by  Shari Natanael 2 months, 2 weeks ago.

Viewing 15 posts - 1 through 15 (of 17 total)
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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

    #115174


    Participant

    Definitely agree that there is not a standard timeline. The key is to be purposeful in both your timeline and your communication/change strategy, in support of your vision.

    #115187


    Participant

    The long-term well-being of the company and its personnel require that the PMI process not be accelerated to an unreasonable pace. But the integration activities necessary to achieve the stated deal benefits/synergies should be prioritized, along with well-considered quick wins. Cleanup integration activities can follow a more delayed timetable. As the final section in the IM&S module pointed out, the PMI project shouldn’t linger on, and the reigns should be turned over to line managers within a reasonable time–6 months to 1.5 years.

    #115813

    Gautam Anumukonda
    Participant

    Problems in mergers and acquisitions often cause deals to fail or result in the inability to extract true value. With this in mind, post-merger integration planning should begin at the early stages of the deal, and best practices, integral team members, and M&A integration plans have to be established before the deal closes.

    #115820

    Ian
    Participant

    Hi much can depend on the deal type, PMI strategy, overall deal imperatives, the nature of the deal, regulatory environment etc..in many of the deals I have been involved in time is often money and taking the right action taken today beats the perfect choice enacted six months too late. This can help build momentum and remove some fear from employees…If it looks and feels like a “no regret” change that drives value, then it’s usually better to make the change. This of course is not always the case but in my experience is more often than its not. Many thanks

    #115854

    Paul Reed
    Participant

    Most industries, I believe have an acceptable average for length of PMI. With adequate controls, oversight and accountability the integrations should be able to flow within industry average timelines without lingering on for too long and creating internal issues.

    #115858

    Mauricio Weissberg
    Participant

    Hi guys!!!
    Looks like all we have more or less the position about the deal time line, each situation deserve a different approach, but I’d like to stand up one undeniably factor of the speed that you will push the deal, a deep cultural and technological DD. Without this you will sailing with the wind!

    #115911

    Kai Jie
    Participant

    Agreed with the points mentioned above. As the intangible synergies are not easily perceivable, it is advisable to implement guidelines to chart the progress of these synergies and source for feedback proactively in order to not overly delay the entire integration process. Cheers.

    #117000

    Vijay Dravid
    Participant

    Every integration is unique and never a “one size fits all” strategy. This is true not just across industires but within the same company the timelines could vary depending on many criteria including deal type, deal size, adjacency of services, reason for the deal etc..

    #117090

    Matthias Arnet
    Participant

    Fully agree with the above mentioned topics.
    I think it is very important to not “lose the pace”. Therefore, it is crucial to have integration plans in place and follow them accordingly (e.g. also for the brand integration). Of course it is always fine to adapt a plan, but without havig a target timeline from the beginning, it is hard to achieve the synergies and a successful PMI.

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