Merger Acquisition Integration (PMI) Success Factors

Strategic acquisitions can be a great method to increase market share, improve capabilities, or leapfrog competitors by leveraging cost-efficiency. Many acquirers fail to fully integrate great site their new ventures into the company. This can result in negative effects for the long term. This article shares critical success factors for merger acquisition integration (PMI) that can help ensure a successful and efficient integration.

PMI should start with a clear and concise definition that can translate the “why” of a deal into quantifiable goals for integration and a specific plan(s) for each functional area, including revenue and cost-related synergies. PMI should also consider the cultural compatibility between the acquiring and the target companies, as and the nuances that are inherent in each deal’s specific context.

In PMI the main priority is to ensure that both CEOs prioritise stakeholder/customer involvement and allocate the majority of their time towards their core businesses. Hess suggests that in order to achieve this, employees must identify the problem solvers and thought leaders on the team of the target company and assign them to an taskforce for integration. The presence of these senior, trusted leaders in an M&A integration team can help reduce stress and increase morale/buy in by showing the acquired company that their leadership cares.

While playbooks are not ideal for the fluctuating/irregular world of M&A, a basic framework and game plan can be helpful. Visit our resources page for free and download the integration checklist.

Syed Reyhan

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