Post Merger Integration Plan
Why do you need a Post Merger Integration plan?
There are 4 main reasons why Post Merger Integration plans are created. All these reasons address the major problems that a merger can face:
- Ensure proper preparation before Day One: Shaping a successful merger starts the moment you make a deal. An integration plan determines all things that need to be completed prior to Day One and there are plenty of them – from communication and organizational structure for the merged company to concrete steps to prepare for Day One.
- Create an hourly step-by-step plan for Day One: A Step-by-step / hourly plan for Day One is an integral part of a successful M&A plan. Day One is the first opportunity that employees of both companies have to meet and interact, and so it is crucial that all things happen as smoothly as possible.
- Ensure the right course of action for all integration activities: A successful Post Merger Integration does not happen on its own – it is a product of highly-detailed planning. There are many activities that need to be planned in advance of a merger, some of which may need both an interim and target state. Not having a proper Post Merger Integration plan poses many risks e.g. high attrition, IT incompatibility, brand dilution, conflicts of responsibility, etc.
- Make sure that the value associated with a PMI is extracted: It is nearly impossible to extract any planned benefits from a merger or acquisition without careful planning. It does not matter if the benefits originate from platform consolidation, cross-selling, geographical/industry expansion, or improvement of cost position – all of these sources of value require careful planning.
Interested in Post Merger Integration support? We can help.
What makes a good PMI plan?
Building an actionable and comprehensive Post Merger Integration plan requires time and integration experience. Here are a few tips to get started:
|1. Depth: Detailed enough to guide execution; several levels might be required||1. Team: One central team managing the entire integration||1. Repository: Centralized repository of all integration plans|
|2. Width: Coverage of all functions within the organization||2. Roles: Clear roles and responsibilities for all integration activities||2. Reporting: On-demand reporting about integration progress|
|3. Clarity: Tangible and concise description of integration activities||3. Involvement: All relevant actors (if needed, from the acquired company) are to be involved||3. Ease of use: All tools used for your PMI management should be easy and suit everybody|
Interested in getting more guidance around your Post Merger Integration? The Burnie Group’s specialists are happy to have a no-obligation discussion with you about mergers and/or acquisitions.
EXAMPLE: Post Merger Integration plan
Below are some examples of integration plans and reports that are drafted at the correct level of detail.
- Should be drafted for each integration work stream
- Has to include ALL relevant activities to ensure that nothing is left behind
- Should be in depth
- Visual reporting that allows you to recognize issues easily
- Generated in an automated way
- Combines both quantitative and qualitative insights
“If you don’t know where you are going,
any road will get you there.”
Need a proper PMI plan for your integration? We can help.
We have designed execution plans for integrations from $5M to $1.5B.
What mistakes might you make in a Post Merger Integration plan?
There are several mistakes that can be made while developing a Post Merger Integration plan – below we’ve listed a few:
|1. Excluded areas: No area should be excluded from a PMI plan. Even if there are no changes to be made, this should simply be highlighted||1. No central PMO team: Lack of dedicated central team to oversee and guide PMI||1. De-centralized approach: Using various PMI plans that are not available centrally.|
|2. Missing the target state: If there is no common understanding and alignment on the target state, your PMI is likely not to deliver on the promised benefits.||2. Unclear roles: Even a clearly defined PMI plan with all associated activities will not be succesful without the clear assignment and tracking of responsibilities||2. Too complex: A tool-heavy execution that employs complicated Project Management (PM) tools might be inefficient as you have to account for the learning curve of the PM tool|
|3. Too high-level: Not designing a PMI plan and target state deep enough means that much of the work will need to happen later, requiring a higher effort to enable change.||3. Lack of communication: Not sharing the target state and vision for your PMI, will leave staff un-motivated to enact change. People need a clear picture of the destination.||3. Lack of Reporting: Lack of, or inaccurate reporting will limit your ability to follow the progress of the PMI project.|
Mergers and Acquisitions Resources
How our Post Merger Integrations services can help you:
Looking for more examples of Post Merger Integrations? Our PMI specialists have over 10 years of experience assisting clients in their M&A activities.
Please contact us for an initial discussion and assessment of your situation.