When to start integration planning?
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I have heard a wide variety of views on when integration planning should start, from the extreme of as early as the start of selecting a long list to during confirmatory DD (post NBO). What is the approach that you prefer and why?
Planning can happen in the different stages of the integration process, early start is always recommended as there will be things you would need to adjust, so my recommendation from a risk perspective will be the earliest possible.
The approach preferred at my organization is once we hear of the transaction LOI has been executed. For HR M&A, integration really kicks off once signing happens, unless signing and closing occur on the same day, then integration happens earlier on.
In M&A integration planning, the earlier you plan the better you succeed, the planning phase shall start as soon as the deal approach to execution.
My preferred approach on the integration planning is during the pre-closing due diligence.
This is when information from the Data Room becomes available and we get visibility to what workstreams are working much similar and much different in the target company versus ours.
In the Integration Planning the ones where we expect more work, could get assigned some more resources and higher priority.Start integration planning during due diligence or immediately after deal signing – early planning prevents costly delays and identifies potential roadblocks before they become deal-breakers.
The earlier you start, the faster you realize synergies – companies that begin integration planning 60-90 days before closing typically achieve their targets 6-12 months sooner than those who wait.
It is a great question and there are many answers to it. I would say the larger the deal and the more transformative in nature, the earlier the integration of the deal should be considered.
I would add that it would be useful indeed to have a visual of the Target Operating Model (high level), before starting Due Diligence. This would help the DD efforts by taking a holistic view of uncovering the risks and validating the assumptions necessary to reach the end state or “Target Operating Model”.
This can also be helpful for the Scope of Work of the DD as well as for clarity in testing the business plan.
As more risks are uncovered and assumptions are validated during DD, more details can be included in the initial visual of the Target Operating Model, as well as what steps need to be taken in order to arive there, considering the DD outcomes.
Integration planning should start during due diligence; before the deal is signed. Early alignment drives faster value capture and smoother execution.
According to my opinion, integration planning should start as early as the due diligence phase because through the due diligence process the acquirer should aim to identify all the competitive advantages and disadvantages of the target, scrutinize all the functions of the target and find out differences and similarities, culture, processes, client base, marketing, finance, HR, IT and all the functions practices and tools and workflows. So, in this phase the acquirer can use the valuable information acquired to decide first whether the deal is worth proceeding or it should be abandoned. If proceeding is decided, all this useful information should be used to plan the integration of the two firms on a functional level. Thus, it is also important that the external advisors should not be left alone to do the due diligence but they should always been accompanied by project managers of the acquirer who must have active involvement.
I prefer starting integration planning early, ideally before signing the NBO (Non-Binding Offer). Here’s why:
– You can spot integration risks before committing too far.
– It helps shape the deal structure to support smoother integration.
– You get early alignment on culture, systems, and people priorities.Waiting until confirmatory due diligence is common, but it can be **too late** to influence key decisions or prepare for Day 1 readiness.
For me, I’d look at integration planning as early as when evaluating preliminary targets from a high-level lense. Then once due diligence is confirmed begin thinking about the planning and initiation of core integration. I look at it into two sections (Target & Core).
Target: being does our knowledge and understanding of the target align with our integration process and does it meet our criteria for strategic, operational, and cultural fits. What early synergies are forecast and does that add value.
Core: What are the key synergies, systems, and efficiencies we want to gain. What are our execution imperatives and wishlists and how does that align with our capabilities to ensure we have a plan for priority function integrations (technology, people, business operations).
Depends on the company. If you are large corporation with a PMI team, one must plan and communicate clearly and identify those companies in the long list with till be better off for an initial assessments. During due diligence, the PMI team must analyze every inch of the company. Many deals fail during this period because of this.
If you are a much smaller company, you don´t have the luxury for a special team to analyze the company. Each area director of the company must assign a member to the “integration committee”. Here project management is vital, to keep everyone’s responsibility in check and timelines as accurate as possible. You should start during integration before due diligence because the “committee” will surely take a longer time to analyze the company.
Integration planning should begin at the very start — when screening potential targets for the long list. At that stage, it’s high-level: thinking about strategic fit, cultural alignment, and potential integration complexity. This early lens helps avoid surprises and ensures you’re not just buying assets but a business you can integrate effectively to create value. As the opportunity moves through the pipeline, planning should progressively deepen — moving from conceptual integration themes to detailed workstreams and Day 1 readiness. By confirmatory DD, you’re refining a well-structured integration blueprint, not scrambling to build one. Starting early accelerates synergy capture and reduces execution risk.
I see it as a continuum. From the long list stage, integration planning should start in a very high level way. Based on the type of company you are targeting, you are already framing which capabilities are mission critical to integrate early and which areas can remain more standalone or are a lower priority that can be dealt with later. As the deal moves toward due diligence and looks more likely, the bulk of the real integration planning should occur during confirmatory due diligence. At that point there is a stronger level of commitment from both sides, and access to detailed financial, operational, tech and people data, which you need in order to design realistic integration workstreams, sequencing and resourcing rather than a theoretical blueprint.
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