M&A Post-Merger Integration

What is M&A Post-Merger Integration?

Post-merger integration is the most critical and challenging aspect of M&A deals. It systematically integrates two companies’ operations, culture, and technology to maximize synergies and achieve long-term success.

M&A integration or post-merger integration (P-MI) brings two or more companies together to maximize synergies to ensure the deal lives up to its predicted value. The exact process is sometimes referred to as post-acquisition integration. 

• Holding: The acquiring company keeps the target company’s ownership but does not integrate the target company.
• Symbiosis: In this merger type, you decide where integration is needed to reach the objectives of the merger integration.
• Absorption: the acquiring company fully absorbs the target company. 

To succeed, a PMI must achieve four fundamentally different objectives:

1. Maintain momentum in the ongoing businesses.
2. Maximize and accelerate synergies and value creation.
3. Build the organization.
4. Align the cultures to drive the new company forward. 

Depending on what studies you look at, Harvard Business Review reports that somewhere between 70% and 90% of mergers fail during the post-merger integration phase.

Value destruction is the usual suspect. Poor communication, integration, and cultural differences are the most common reasons. If these issues are not addressed, making a merger or acquisition a success can be challenging. Lastly, another common reason for failure is that the two companies are incompatible. 

CORBEAU is a strong partner for mission-critical engagements. With the acumen and discipline to assist and foster skills growth within your organization, ensuring it’s prepared and strong enough to continue when we roll off.