Post Merger Integration Model

Non classé / 1 juillet 2024

Post merger integration model is a process that helps the M&A process optimization with tech tools acquirer and acquired company set up the framework within which they’ll function. This includes a decision-making process, the structure for leadership and governance including reporting matrix, operating model, and plans for external and internal communications. This planning stage is crucial for all departments including the finance and operations department, IT departments, clinical as well as quality, supply chain HR, staff, and supply chain.

In the end, the success of PMI will determine the value of the transaction for both companies. Without proper planning and execution it will be difficult to achieve any of the benefits that are planned, such as platform consolidation, cross-selling expanding geographically or in industry and cost reduction, among others.

It is crucial that the organizational structure be properly established and communicated prior the start of the PMI in order to establish the tone for the entire project. This can be accomplished by clarifying roles, responsibilities and expectations from the beginning, which will minimize resistance and conflict.

This will require a lot of work, as the two merging companies may have different policies, procedures, and business processes. For instance, if one company records transactions in books, while the other is using an enterprise resource planning system, it will take an enormous amount of effort to ensure that their systems are compatible.

This is where the most significant adjustments and integrations are made in order to ensure that the final procedures were conceived and developed. In this stage the company that is acquired will implement the business strategies that are combined and implement best practices from the two companies to gain synergies.

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