Mergers

Ten Steps to Post-merger Integration Success

 

From David Burnie’s company blog, a ten-point checklist that can help make a post-merger integration successful.

 

For most companies, mergers do not occur regularly or recurringly, bringing with them a host of uncertainty and doubt. When two companies merge, it is a unique experience for both companies requiring a particular course of action, capabilities, and skills.

The Burnie Group team has supported numerous post merger integrations from $10M up to $1B across various industries, including insurance and financial services, professional services, pharma, beauty and cosmetics, software and technology, and senior living, to name a few.

Here are ten critical things to get right in every post-merger integration (PMI), no matter the merger type, size, or industry.

  1. Use the time leading up to the closing day wisely

The pre-closing period begins as soon as the due diligence is complete and both sides negotiate and agree upon the terms. Though this period may range from a couple of weeks to several months, we found that a typical pre-closing interval is between four and eight weeks. The pre-closing period is driven by the need to get all Day 1/Closing Day checkmarks in place, such as legal aspects, permits, financing, etc.

Knowing how much time is available before Closing Day will dictate the scope of work that can be realistically completed. From our experience, it takes at least a few days to get an integration project management office (PMO) and integration workstreams set up, including governance with roles and responsibilities.

Suppose you have only a couple of weeks. In that case, the scope of your pre-closing integration topics should focus on must-do legal aspects, financing, clear communication, and most urgent people-related topics.

If you have four to six weeks, a more detailed integration plan can be developed involving all relevant workstreams (e.g., technology, operations, sales and distribution, etc.)

If you have six to eight weeks, you will have the luxury of approaching Day 1/Closing Day in a very planned fashion. In addition to completing all of the above tasks, you can develop the target operating model for the integrated companies.

It is worth keeping in mind that the further out the Day 1/Closing Day, the more likely the merger news will slip through. Thus, the communication workstream should closely manage internal and external communication.

 

Key points include:

  • Friendly vs. hostile takeover
  • Human resource topics
  • The target operating model for the PMI

 

Read the full post, 10 Things You Must Know to Make Your Post Merger Integration a Success, on theburniegroup.com. 

 

A Post-Merger Integration Plan Guide

January 25, 2020

 

David Burnie’s company blog provides a plan for post-merger integration to help ensure a smoother process.

 

A post-merger integration or PMI is what happens following a merger or acquisition. PMIs are the complex process of combining and rearranging the merged businesses to find efficiencies and create synergies.

 

Points included in the article:

 

1: What makes a good PMI plan?

2: An example PMI plan

3: Common mistakes in a Post Merger Integration plan

 

Read the full copy of the Post Merger Integration Plan from the Post Merger Integration Knowledge Hub on The Burnie Group’s website.