Post Merger Acquisition
My topic was Post Merger Integration. Post merger integration is one of the methods used after merger and acquisition. It can help companies to increase their value after M&A has completed.
When companies merge, high cost of synergies, related job cuts, fast decisions and clear statements are required. When PMI is carried out, a more relaxed transition can be made. Post-merger integration brings intangible and non-cash values after M&A has taken place.
After M&A has occurred, companies need to have time to overcome their differences, recognize changes and be united into one company.
Post Merger Integration, is a series of procedures meant to facilitate the integration of two organizations. It helps the company more united and generates sustainable added value for companies.
60% of M&As resulted in failure and 40% of this rate was due to erroneous post merger integration. PMI gives time to each company to overcome these social and financial factors and be fully united. Companies not focusing much on PMI or who mismanage PMI can cause M&A failure.
Companies should remember when managing and handling PMI that there is no one-size fits-all M&A rule and it is dangerous. Instead of it, purposes, experiences of M&A, characteristics of certain field, and the culture of the company need to be considered.
Second, companies should begin work on PMI before M&A. It is too late to fully understand one company after M&A.
Third, companies should not assimilate another company. This type of mistake can increase rebelliousness of employees and hamper effectiveness.
Fourth, companies should be culturally integrated. They can reap unexpected benefits and values from synergy.
There are eight conscious decisions to guarantee success in PMI. Choosing the type of synergy (restructuring or focusing on growing potentials), speed (fast or slow and steady), extent, and the spirit of the integration, the point at which integration
When companies merge, high cost of synergies, related job cuts, fast decisions and clear statements are required. When PMI is carried out, a more relaxed transition can be made. Post-merger integration brings intangible and non-cash values after M&A has taken place.
After M&A has occurred, companies need to have time to overcome their differences, recognize changes and be united into one company.
Post Merger Integration, is a series of procedures meant to facilitate the integration of two organizations. It helps the company more united and generates sustainable added value for companies.
60% of M&As resulted in failure and 40% of this rate was due to erroneous post merger integration. PMI gives time to each company to overcome these social and financial factors and be fully united. Companies not focusing much on PMI or who mismanage PMI can cause M&A failure.
Companies should remember when managing and handling PMI that there is no one-size fits-all M&A rule and it is dangerous. Instead of it, purposes, experiences of M&A, characteristics of certain field, and the culture of the company need to be considered.
Second, companies should begin work on PMI before M&A. It is too late to fully understand one company after M&A.
Third, companies should not assimilate another company. This type of mistake can increase rebelliousness of employees and hamper effectiveness.
Fourth, companies should be culturally integrated. They can reap unexpected benefits and values from synergy.
There are eight conscious decisions to guarantee success in PMI. Choosing the type of synergy (restructuring or focusing on growing potentials), speed (fast or slow and steady), extent, and the spirit of the integration, the point at which integration