Merger Acquisition Integration (PMI) Success Factors

An acquisition can be an effective strategy tool for increasing market share, increasing capabilities or gaining an edge over competitors by increasing cost efficiency. However many acquirers fail on integrating their new entities with their existing business and could result in negative long-term consequences. This article will outline the essential success elements of merger acquisition integration (PMI) that will ensure a successful and high-performing integration.

PMI should begin with an explicit and concise description that translates the „why“ of a deal into quantifiable integration objectives and a specific plan(s) for every functional area, including revenue and cost-related synergies. PMI must also take into consideration the cultural compatibility between the acquiring and target companies, as and the nuances that are inherent to each deal’s unique circumstances.

During PMI an important focus is on ensuring that both CEOs place a high value on stakeholder/customer involvement and allocate the majority of their time to their core business. To accomplish this, Hess recommends identifying the people who are thought leaders and problem solvers in the team of the target company – the people that employees turn to for help and assigning them to an task force on integration. Having these trusted, senior leaders in an M&A team for integration can ease anxiety and boost http://www.virtualdataroomservices.info/ morale/buy-in showing the acquired company that their leadership cares.

While playbooks are not ideal for the fluctuating/irregular world of M&A, a basic framework and game plan can be helpful. To download a free copy of the integration checklist, visit our free resources page.