Post merger integration mckinsey pdf

How you lead your organization through an integration following a merger or acquisition can make or break the original deal. The first 100 days as part of our complete pmi offering developing and supporting the rst 100 days of an integration is a vital component of our comprehensive post merger integration offering. Postmerger integration insights our latest thinking bcg. Ultimately, for an acquisition or merger to create value, the combination must become more than the sum of the parts. Yes, every part sales, marketing, finance, it, hr, manufacturing etc. Capturing the value of the deal is a balancing act that requires close attention to management, employees, customers, and shareholders.

Youve considered all of the likely market reactions. Youve done your homework and found the right company with the right strategic fit. Postmerger integration pmi is critical to realizing the value of a deal. Based on postmerger integration pmi hbr and mckinsey, bain, bcg, a. Delaying integration could risk losing prominent customers to competitors or undermine confidence in a merger. In the model, the acquiring firm makes decisions about the level of integration and the degree of replacement of the targets top management team, and can develop a capability to manage the postacquisition integration process by tacitly accumulating acquisition experience and. Capgemini consulting has broad experience in supporting external growth initiatives throughout the. Bainsupported integrations outperform average deals by 18%. Culture and change management are among the most unpredictable factors of deal success. A proven and battletested rcp playbook with complementary digital solutions is critical to enabling day one readiness and business continuity, post merger or separation.

Explore bcgs latest thought leadership on post merger integration to develop a winning strategy that unlocks synergies quickly, and returns value to investors. The role of leadership in merger integration mckinsey. See more ideas about merger, framework, consulting business. More free checklists can be accessed by downloading our playbooks. One major reason is that companies tend to treat postmerger integration pmi as a mechanical process that occurs after the deal is closed.

But the path to success isnt the same for every company. Mercer post merger integration pmi hr consultants provide strategic integration planning from day one. Integrating merging companies requires a daunting degree of effort and coordination from across the newly combined organization. For example, in a recent merger of two distribution companies, transitioning to the target companys erp was central to the deal rationale. David cogman is a principal in mckinsey s shanghai office, and jacqueline tan is a consultant in. Together, well avoid risk and identify opportunity from due diligence to postclose value capture. Integration handbook 2017 postacquisition integration handbook. Nov 05, 2017 whether a company hire outsiders to help or not, postmerger integration pmi is needed with every part of the business. For merger integration to succeed, investing in leadership readiness is. Selected results from the business consulting literature on mergers and post merger integration sponsor selected results sample, methods, comparison group 7 mckinsey 2000, 2001 65%70% of deals fail to enhance shareholder value.

In short, youre convinced this deal represents an excellent opportunity. This article discusses post merger integration pmi and the tradeoff between the economic benefits and costs that arise when organizations merge under a new organizational structure and. Post merger integration pointofview april 2017 merger integration in a converging world. Realizing the synergies nils bohlin, eliot daley, and sue thomson merger and acquisition activity has grown sharply in the last five years. Critical requirements, including, risks, timing, and deal objectives, are carefully mapped out. A wellthoughtout strategy will provide a clear road map for the integration and eliminate the tendency to revisit directional decisions. The elusive art of postmerger leadership mergers that appear to be successful in the short term often destroy value later on. Postmerger integration framework palmares consulting. Achieve postmerger integration pmi excellence with a postmerger integration pmi plan. Dealmaking is hard, but integration is even harder. Merger integration in a converging world ey united states. Integration handbook 2017 postacquisition integration. A pre merger process that targets companies with the right capabilities, gets the deal done and begins the integration through rigorous planning and building of trust among the players.

Jan 26, 2015 we use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Our post merger integration checklists have been gleaned from our acquisition integration playbooks. Thomaskautzsch,partner 82% 60% 46% t h ec al ng sof pmi thesoftfactorsdetermine success stabilizationof theorganization cultural integration operational synergies. If an integration fails, poor culture and change management are often to blame as a majority of deal makers struggle with. Exclusively focused on post merger integration and separation, gpmip delivers projects at greater efficiency than traditional consulting firms, maximizing capabilities, experience, and expertise. How the best acquirers excel at integration mckinsey. Companies are using merger integration as a catalyst for achieving the full potential for both companies operations. If you think of a corporate merger as a marriage, then you can see that there is still as lot of work left to do after the wedding date day 1. A post merger process that seeks to capture welldefined sources of value and is led in a way that captures as much value as possible as quickly as possible. Its also highly complex, taking place under severe time pressure and in parallel to running the core businessmaking it one of the most challenging initiatives a senior executive will ever undertake. To achieve this, companies have to approach postmerger integration with the same level of commitment and strategic intent as the transaction itself. Post merger integration framework by exmckinsey consultants. Successfu sl ael s force integration asl o requrei s exceell nt executoi n of the basci s, incul dni g detaeli d pal nnni g percent of respondents n 89 need to improve integration of sales capabilities exhibit 3 source. Smoothing postmerger integration in our experience, establishing a clean team to support integration efforts before a deal closes can help speed up the completion of critical tasks and improve the chances of capturing the merger s synergies.

A mckinsey perspective on organizing integrations to create value mergers offer tremendous opportunity to create and sustain breakthrough value, especially for. To help our clients with these challenges, baker mckenzie has released the 7th edition of our post acquisition integration handbook, a practical reference tool for companies contemplating, or in the process of executing, a multinational business acquisition and integration. Through discovery and analysis, the post merger integration framework must allow for taking time to understand the customer and the target company, which is a major benefit of agile teams become efficient and much more customerpeople focused. Post acquisition integration handbook l l 8 l baker mckenzie experience has taught us that the key to developing an effective post acquisition integration plan, implementing it successfully, and overcoming the inevitable challenges, is the early identification of the overriding strategic and business. The integration strategy for enterprise resource planning erp is usually a major input to the transition timelineand affects the pace of capturing full deal value. Post merger and acquisition integration era is the period where planned and thought through, as well as contingent strategies are deployed with the aim of achieving the motives for the merger or. In any merger, acquisition, or joint venture, the sooner managers integrate their companies the faster they capture the expected synergies. How can you master merger integration in the digital age. If youre not careful it can drag on for months after the transaction closes. We have proprietary methodologies and tools to help align people, organizational cultures, and work styles to business and deal strategies.

Post merger integration checklists acquisition integration. A lighter touch for postmerger integration january 2010 article. Post merger integration or pmi is a complex process of combining and rearranging businesses to materialize potential efficiencies and synergies that usually motivate mergers and acquisitions. When it comes to acquisitions, some asian companies are forging a novel path through the thicket of postmerger integration. Smoothing postmerger integration in our experience, establishing a clean team to support integration efforts before a deal closes can help speed up the completion of critical tasks and improve the chances of capturing the mergers synergies. For example, in one healthcare deal, the acquirer began its assessment of culture during the duediligence process. Bains battletested approach has supported more than 1,000 merger integration projects, from the largest, most complicated global deals to smaller scope transactions. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. We join a long list of other institutions that are rescheduling events to protect the health and safety of attendees and to support the. By david cogman and jacqueline tan open interactive popup.

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