Post Merger Integration

Background Post-Merger Integration PMI

Post Merger Integration” means the growing together of two, previously separate companies. In this process, process flows have to be restructured and redefined by managers, which is a real challenge. Compared to other management tasks, it offers the full range of possible construction sites under the intensified condition of time pressure and requires considerable change management expertise. “According to a study by A.T. Kearney, the merging of companies following the so-called “deal making process” is one of the most difficult and risky phases in the M&A process, with a risk of failure of over 53% (source: “Management von Unternehmensakquisitionen im Mittelstand”; Dr. Sabine Furtner). In mergers and acquisitions (M&A), F&P AG focuses on the management of post-merger integrations (PMI). Learn more about the F&P checklist for a successful PMI here. Checklist Post-Merger Integration (PMI), Goals and Requirements

  • Determine rules of the game
  • Set synergy targets
  • Establish PMI Change Management and PMI Process Management
  • Increase market growth of the acquired company
  • Strengthen the profitability of the merged company
  • Maintain existing customer potential and develop new ones
  • Establish new distribution channels and business areas
  • Strengthen purchasing power and negotiating positions vis-à-vis customers and suppliers

You are looking for an interim manager or consultant with high expertise in the field of post-merger integration, who can quickly lead your challenging project or programme to success?

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.
Contribution by F&P in the Unternehmer Edition

Press

In the 4th annual edition of the “Unternehmeredition Special” on the subject of private equity / M&A 2012, our managing partner Dipl.-Kfm. Bernd Fischer explains on pages 82-83 the key to the success of a transaction through comprehensive post-merger integration management. Article by our Managing Partner B. Fischer in Private Equity Magazin on the topic of the challenge of PMI Strategic realignment at F&P

Post Merger Integration: Services of F&P

Our partners have expertise and solutions, the so-called “Executive Solutions”, which include the management of various M&A change projects. Due to the unique selling proposition of our firm, we are not only able to provide you with individual consultants or interim managers, but also support you with teams of experts with many years of operational experience in all functional areas. As a TOP consulting firm, we can therefore provide you with practice-oriented concepts and support you in their implementation.

Our know-how covers the following areas:

  • Operational & Commercial Due Diligence
    • Supply Chain & Logistics
    • Sales & Customer Service
    • Marketing
    • IT
  • Post-Merger Integration (PMI)
    • Purchasing & Production
    • Supply Chain & Logistics
    • Sales & Customer Service
    • Marketing
    • HR
    • Finance & Controlling
    • IT
  • Post Deal Performance Improvement
    • Supply Chain & Logistics
    • Sales & Customer Service
    • Marketing
    • IT

Please also take a look at our case studies and learn more about successfully implemented projects. We look forward to hearing from you!

Your contact for M&A / Post Merger Integration

Bernd Fischer

Contact me at

040 34 10 77 00
fischer@fup-ag.com

Contact for M&A / Post Merger Integration - Bernd Fischer

Gerd Giesen

Contact me at

040 34 10 77 00
giesen@fup-ag.com

Contact for M&A / Post Merger Integration - Gerd Giesen

Nico Pohlmann

Contact me at

040 34 10 77 00
pohlmann@fup-ag.com

Contact for M&A / Post Merger Integration - Nico Pohlmann

Ulrike Tegtmeier

Contact me at

040 34 10 77 00
tegtmeier@fup-ag.com

Contact for M&A / Post Merger Integration - Ulrike Tegtmeier

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