The task of post merger integration
An important ingredient in acquisition strategy is how you integrate the acquired company. Let us describe the task of post merger integration with goals and objectives. You have to think well about goals and objectives, since these will define what is being done through merger integration.
Goal of the merger integration taskThe goal of post merger integration is to plan and execute the integration of two businesses. WIthin each business, there is an organization and there are many processes, which are to be aligned and/or integrated.
Objectives of the merger integration task
- Maximize likelihood of integration success: each merger integration tries to reach successful completion meaning that there is no failure of the integration.
- Continue target operations: in most cases, it is important to not interrupt the target operations with merger integration activities.
- Fit integration type: there are different ways to integrate two companies, which are determined in the integration strategy. more information about merger integration types can be found here: Merger Integration Types
- Fulfill synergy objectives: every merger has synergy expectations and objectives. Merger integration is targeted at creating such synergies.
Decomposition of the merger integration taskThere are three subtasks: designing the new entity, planning merger integration (project) and executing merger integration project.
The first two should be started during due diligence to ensure merger integration success
Merger integration type and approachHere, we talk about merger integration type for results of the task for designing the new entity.
When talking about merger integration approach, we mean how the merger integration is planned and executed.
CONTINUE TO TYPES OF MERGER INTEGRATION
(c) Dr. Karl Popp 2017