Post-Merger Integration
Maximising synergies and aligning cultures to drive the new organisation forward
How to up-scale a business?
One of the fastest way to grow a business is to buy growth. How? by either merging or acquiring another business. The most common reasons for M&A include acquiring specialist skills, patents or intellectual property, obtaining access to a new client base or supply chain, as well as consolidation in to reduce cost and compete fiercely in the market.
What do M&As actually Involve?
The first step is to analyse the market and identify the Target company, which is a potential firm that would benefit your business. Once the target is found, due diligence would be conducted; identifying synergies, anticipated benefits, assessment for cultural fit, as well as the company valuation (price to be paid to the existing shareholders). The challenging work starts once the target firm is acquired. According to various reports, up to 90% of M&A deals fail or underperform. This is mostly due to the fact that the management often struggles to realise the synergies and benefits in time and, subsequently, the company loses value. For this reason, it is vital to start preparing Post-merger integration plans before the deal is closed. This is where we come into the picture. Our PMI consultants can prepare and deliver the e2e integration plan while successfully striking a balance to make the best use of your Internal resources, guiding them to help with integration whilst ensuring their day-to-day operations remain unaffected.
The First 100 Days
The first 100 days after signing the deal are of utmost importance for both organisations. In fact, this is when most of the value is lost in the failed deals. Capturing low-hanging fruits (easy wins), and setting pace and expectations occurs in this period and, if done correctly, it ensures that the remainder of the integration runs smoothly. A detailed plan helps instil confidence in the employees and it is equally important to neutralise challenging situations diplomatically.
