People & Organization
Post-Merger Integration (PMI)
It is the process where the new company that emerges from a merger or acquisition is organised in a manner that unleashes the potential synergies and cost-saving that drives the original deal. Post-merger integration is one of the most complicated and problematic processes in modern business, and it must be handled carefully to ensure that the potential benefits of the merger are achieved.
Most successful post-merger integrations are handled by a third party consultant. They are able to bring their singular focus and personal detachment to the project to ensure that the potential value from the merger is achieved. Not only does the operating model of the resulting company need to be designed so as to maximise the post-merger value, but the problem of bringing together different, and potentially conflicting, corporate cultures needs to be addressed as well.
Consultport consultants have numerous successful examples of navigating the difficult waters surrounding a post-merger integration, and can ensure that the full potential value of your merger unleashes.
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Identify and Focus on Value Driver Development:
All mergers will be based on one or more key value drivers, through synergies, cost-saving or both. A consultant will ensure that these value drivers are clearly defined and focus team efforts on their rapid development and deployment. By focusing on the value drivers of the merger, the full potential value of the deal is achieved.
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Post-Merger Operating Model:
Regardless of the size of the merged parties, the resulting organisation will be a new company with a new operating model. A consultant will develop this new operating model as a brand new entity, without any attachment to the previous model and only the maximising of value in mind. They will ensure that this new operating model is a fresh result that is more than just the sum of its parts.
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Post-Merger Talent Retention:
Mergers create a large amount of uncertainty among employees that can often lead to talent loss, underperformance and poor personnel integration. Post-merger integration consultants have reliable methods for providing employees with a sense of stability and keeping them informed of the process. Employees that feel informed on the developments of the merger are more likely to stay with the company and enthusiastically adopt the new post-merger culture.
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Team Integration:
A consultant will work to integrate the employees from different origin companies in a manner that creates cohesive and effective new teams. One of the most common pitfalls in mergers is the failure for employees from different origins to feel comfortable in the new company. Post-merger integration consultants have numerous methods for ensuring team integration and the adoption of a new shared company culture.
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Post-Merger Culture and Communication:
A new company means a new company culture and new methods of communication between managers and employees. An outside consultant will have the best vantage point to develop the necessary messaging and communication methods to instill a new culture for your new company that is perfectly aligned with its market strategies.
Our management consulting services focus on our clients’ most critical issues and opportunities: strategy, marketing, organization, operations, technology, transformation, digital, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies. We bring deep, functional expertise, but are known for our holistic perspective: we capture value across boundaries and between the silos of any organization. We have proven a multiplier effect from optimizing the sum of the parts, not just the individual pieces.
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