This document provides a guide and framework for best practice in post merger integration.
Post merger integration is the process of combining two separate companies in a way that quickly creates the most value and fulfils the expectations outlined in the acquisition vision.
The framework comprises of six key steps:
1. Determine leadership, assign responsibilities and establish operating model
2. Build a strong integration structure
3. Prioritise opportunities and implement quick wins
4. Actively address cultural issues
5. Establish open, frequent and timely communication
6. Rigorously manage risks
This document is equally suitable for consultants and those in a corporate role.
This comprehensive framework also emphasizes the importance of aligning integration activities with the overarching corporate strategy. By ensuring that the acquisition strategy is at the forefront of target identification, due diligence, and final merger decisions, companies can streamline the integration process and maximize value capture. The PPT provides actionable insights into pre-merger identification and planning, helping organizations to identify and target companies with the desired capabilities, assess barriers to the deal, and create detailed plans on value capture.
The framework highlights the necessity of tailoring integration approaches based on the specific logic and focus of different divisions. Integration of overlapping business areas typically involves cost-oriented, top-down strategies, while complementary business integrations are more opportunity-driven. This differentiation is crucial for addressing the unique challenges and opportunities presented by each integration project, ensuring that the approach and timing are appropriately aligned with the nature of the synergies involved.
A key component of the framework is the establishment of a Corporate "Control Tower" to oversee the integration process. This central structure, comprising senior executives and top talent, ensures that guiding principles are adhered to and progress is actively monitored. By framing the overall integration plan, coordinating activities across business units, and maintaining consistent processes, the Control Tower drives the successful execution of integration activities, ultimately leading to the realization of projected synergies and value creation.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in PMI PowerPoint Slides: Post Merger Integration (PMI) Best Practice Framework PowerPoint (PPTX) Presentation Slide Deck, STRATICX
This PPT slide presents a framework for understanding different merger types based on strategic objectives. It emphasizes that while growth drives merger activity, the approach varies significantly among companies. Three primary merger types are outlined: Scale, Stream, and Concentric, each with distinct strategic goals.
The Scale mergers focus on achieving economies of scale, primarily in mature industries. This strategy is prevalent in highly competitive and often deregulated environments, where reducing unit costs is crucial. The slide indicates that around 70% of all mergers fall into this category, highlighting its dominance in merger activities.
Stream mergers involve vertical integration, either upstream or downstream, along the value chain. An example provided is a beer brewer acquiring a retail position through the purchase of pubs. This strategy aims to enhance control over the supply chain and improve operational efficiencies.
Concentric mergers focus on enhancing value propositions within the same customer base. This type of merger is illustrated with an example of an automaker branching out into a broader technology sector. The goal here is to leverage existing customer relationships while expanding product offerings.
The slide effectively conveys that different strategic platforms necessitate different merger types to achieve specific outcomes. Understanding these distinctions is vital for companies considering mergers, as aligning the merger type with strategic objectives can significantly influence the success of the integration process. The visual representation of merger activities further reinforces the prevalence of Scale mergers, providing a clear snapshot of the current merger environment.
This document is available as part of the following discounted bundle(s):
Save 35%!
The Complete Kit
This bundle contains 13 total documents. See all the documents to the right.
PMI Consulting Frameworks Strategy Development Hoshin Kanri Strategy Deployment & Execution Synergy Core Competencies Competitive Advantage Chief Strategy Officer Consulting Training Strategy Frameworks Growth Strategy Porter's Five Forces PowerPoint Diagrams Compilation Business Case Development Financial Modeling Business Case Example Competitive Analysis Strategic Planning Organizational Design Gap Analysis Target Operating Model
![]() |
Receive our FREE presentation on Operational Excellence
This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks. |