Post Merger Integration

Business Case: Post Merger Integration Tasks in Corporate Takeovers

Almost all of our experienced managers have considerable experience in change processes, so-called change management, both as executives and as managers themselves.

Change management in PMI situations

Post-merger integration is the most characteristic form of change management and evokes very special reactions, especially from the employees and managers of the acquired company. The intensive change management after the announcement of the merger from the very first minute contributes significantly to the economic success of this most complex form of change management. Change management includes knowledge of the emotional waves after the deal is announced as well as emotional intelligence in the context of communication within both organisations, so that the phases of uncertainty are quickly turned into a phase of interest in common strengths and future. Psychology The announcement of a corporate acquisition is accompanied by a major shock in many companies. The psychological effects are also referred to as “merger syndrome”. Executives of the acquiring group who act as “conquerors” and the fear of loss of the employees of the acquired company and their basic needs for security, recognition, self-fulfilment risk the successful outcome of the merger of both companies. To-dos in the PMI case

• Clear, comprehensive, fast and precise communication.
• The temporal consequences of changes in the context of reorganisation and restructuring measures must be clearly defined in advance.
• Details of the implementation of the plans are provided by the established integration teams.
• Management and key personnel as well as opinion leaders of the acquired company must be quickly identified for the equal staffing of the integration teams.
• Appointment of key positions in the integration teams for the assumption of responsibilities via incentives or so-called “stay bonuses”-> Only in this way can the successful integration work and the simultaneous maintenance of business operations and the successful merger be ensured.
• Open communication, the promotion of a cross-company relationship and information network through joint events and project work.
• Conveying credibility and mutual respect are central tasks of change management to overcome the “merger syndrome”, so that the most important asset, the customers and one’s own business, are not damaged in any way by the consequences of the merger to the advantage of the competition.