Merger Acquisition Integration (PMI) Success Factors

A strategic acquisition could be a successful way to increase market share, increase capabilities, or outdo competitors by making use of cost-efficiency. However many acquirers fail on integrating their new entities into the business, which can have long-term detrimental impacts. This article will outline the essential success factors in merger acquisition integration (PMI), which can ensure a high-performing and successful integration.

PMI should begin with an eloquent and concise definition that translates the “why” of the deal into quantifiable objectives for integration and a specific plan(s) for each functional area, which includes revenue and cost-related synergies. PMI must also take into consideration the cultural compatibility between the acquiring and the target companies as well as the nuances inherent in each deal’s particular context.

A key aspect to be focused on during PMI is to ensure that the CEOs of both firms dedicate the majority of their time to their core activities and prioritize customer/stakeholder engagement. To accomplish this, Hess recommends identifying the people who are thought leaders and problem solvers in the team of the target company – the people other employees turn to for assistance – and assigning them to an integration task force. A trusted group of senior leaders on an M&A team for integration can ease stress and improve morale/buy-in by showing the acquired company that they are a part of the team.

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

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