Editor's Note: Take a look at our featured best practice, Post Acquisition Integration Strategy (Post Merger Integration - PMI) (79-page PDF document). XYZ is pleased to have assisted Client X's leadership in developing the following Company A Integration Strategy. The strategy represents an intense, four-week collaboration between Client X and XYZ to define the integrated end state, integration approach, synergy opportunities and Day One [read more]
The Key to Maximizing Deal Value: Post-merger Integration (PMI) Roles & Responsibilities
Also, if you are interested in becoming an expert on Post-merger Integration (PMI), take a look at Flevy's Post-merger Integration (PMI) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
* * * *
For Post-merger Integration (PMI) to be successful, it is critical that we have clearly defined, appropriate, and comprehensive roles and responsibilities.
Post-merger Integration is a highly complex process. It requires swift action as well as running the core business activities simultaneously. There is no one-size-fits-all approach to a successful PMI Process. However, careful planning focusing on the strategic objectives of the deal and the identification and capturing of synergies will help maximize deal value.
While it may be a highly complex project, a successful PMI may be achieved and greater deal value can be expected. Right from Day One of PMI, it is already important that the Buyer and Target have the right people in place. The success of the integration project depends on leadership, project management capabilities, and selection of the right personnel to the work in teams/streams.
Roles & Responsibilities in PMI: Why the Need for Emphasis
So, what are the requisite PMI roles and responsibilities? Clearly defined roles and responsibilities are a fundamental factor that can make a big difference between gaining deal success or failure.
The Integration owner, together with the Integration Steering Group plays a critical role in defining the integration path of the organization. In Leadership Development, their role in the First 100 Days is a fundamental factor in achieving success or failure.
- Integration Owner. The Integration Owner is a member of the Buyer’s management team. He/she is basically the owner of the integration phase. It is the responsibility of the Integration Owner to oversee the integration phase, as well as the transaction/purchase phase.
- Integration Steering Group. The Integration Steering Group is the governing body of the integration phase. The specific role of the Integration Steering Group is to supervise the work of the Integration Project Manager and the Integration Team.
- Integration Manager. The Integration Manager is the Project Manager. He/she is the one in charge of the day-to-day management of the integration. If the Integration Manager has little or no project management experience then active hands-on support is required from the M&A Project owner.
- Integration Team/Stream. The Integration Team/Stream consists of an Integration Manager and its members. Streams are areas of the organization split into district parts but which are aligned to the overall strategy. Integration streams are often decided after the first appointment of the Integration Manager. Each stream is often headed by the Integration Stream Manager.
The Critical Role of the Integration Stream Manager
The Integration Stream Managers are selected from among the Buyer’s managers. They play a vital role as they are responsible for the development and implementation of detailed plans.
The Integration Stream Managers act as the team builder and introduce the team members to each other. They ensure that the team members have all the information and tools needed for the task. They clarify goals, targets, timetables, reporting, and other important matters relative to the integration. As Integration Stream Managers, they are expected to ensure that everyone in the team understands the goals the same way and is committed to making it happen.
In certain circumstances, it is possible that the Integration Stream Manager may also be Target’s manager. This happens when Target’s manager has specialized knowledge or attributes necessary for the integration.
Undertaking the Post-merger Integration Process the right way can maximize deal value. On the other hand, it can result in the greatest potential loss of value when not done right. Being able to select the right people is the key.
Interested in gaining more understanding of the various Roles and Responsibilities within PMI? You can learn more and download an editable PowerPoint about Post-merger Integration (PMI): Roles & Responsibilities here on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”
– Michael Duff, Managing Director at Change Strategy (UK)
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”
– Omar Hernán Montes Parra, CEO at Quantum SFE
Want to Achieve Excellence in Post-merger Integration (PMI)?
Gain the knowledge and develop the expertise to become an expert in Post-merger Integration (PMI). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
M&A is an extremely common strategy for growth. M&A transactions always look great on paper. This is why the buyer typically pays a 10-35% premium over the of the target company's market value.
However, when it comes time for the Post-merger Integration (PMI), are we really able to capture the expected value? Studies show only 20% of organizations capture projected revenue synergies and only 40% capture cost synergies. Not to mention, the PMI process is typically very painful, drawn out, and politically charged, often resulting in the loss of key personnel.
Learn about our Post-merger Integration (PMI) Best Practice Frameworks here.
Readers of This Article Are Interested in These Resources
|
27-slide PowerPoint presentation
|
|
131-slide PowerPoint presentation
| |||
About Joseph Robinson
Joseph Robinson is the Vice President of Strategy at Flevy. Flevy is the marketplace for best practices in business management. Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. The documents at Flevy (https://flevy.com) are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience. Flevy covers 200+ management topics, ranging from Digital Transformation to Growth Strategy to Lean Management. You can peruse a full list of management topics available on Flevy here. Prior to Flevy, Joseph worked as an Associate at BCG and holds an MBA from the Sloan School of Management at MIT. You can connect with Joseph on LinkedIn here.Top 10 Recommended Documents on PMI
» View more resources PMI here.
» View the Top 100 Best Practices on Flevy.