Merger Acquisition Integration (PMI) Success Factors

An acquisition can be an effective strategy tool for increasing market share, increasing capabilities, or leapfrogging competitors by making use of cost-savings. Many acquirers fail to fully integrate their new entity into the business. This can result in negative effects for the long term. This article provides the most important success factors in merger acquisition integration (PMI) that will ensure page a high-performing and successful integration.

PMI should begin with a concise and clear definition that maps “why” an acquisition to quantifiable goals and plans for each functional area. This includes revenue and cost related synergies. PMI should also take into consideration the cultural fit between the acquirer and the target companies as and the nuances that are inherent in each deal’s particular circumstances.

In PMI, a major priority is to ensure that both CEOs are able to prioritize stakeholder and customer involvement and dedicate the majority of their time towards their core business. Hess suggests that to accomplish this, employees should identify the problem solvers and thought leaders in the target company’s team and assign them to an integration taskforce. These senior leaders can ease stress and boost morale/buy in by showing the acquired company their leadership cares.

While playbooks are not ideal for the fluctuating/irregular world of M&A, a basic framework and game plan can be helpful. To download a copy of the integration checklist, visit our resources page for free.