What are the five types of acquisition integration strategies?

  1. Autonomy: Acquired company retains its independence.
  2. Best of Both: The best policies, procedures, processes are selected from each company are implemented.
  3. Transformation: Both companies operate in a fundamentally new way.
  4. Absorption: Acquired company conforms to parent.
  5. Reverse Merger: Acquirer adopts the acquired company’s processes.

Acquirers often employ a hybrid of the above strategies on each of their integrations. For example, they may integrate the acquired company’s back office (Absorption) but leave its R&D operation alone (Autonomy).


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Answers to Frequently Asked Questions about Acquisition Integration
Answers to Frequently Asked Questions about Acquisition Integration
What are the five types of acquisition integration strategies?
What are the five types of acquisition integration strategies?
What is an M&A integration playbook?
What is an M&A integration playbook?
When should the M&A integration planning process start?
When should the M&A integration planning process start?
What is the first step in integration planning?
What is the first step in integration planning?
What are the key elements in an M&A integration plan?
What are the key elements in an M&A integration plan?
What is a post-merger integration end state?
What is a post-merger integration end state?
What is a 100-Day Plan?
What is a 100-Day Plan?
What should executive not say when announcing the deal to employees?
What should executive not say when announcing the deal to employees?
Why is Day 1 so important?
Why is Day 1 so important?
To what extent should acquirers integrate?
To what extent should acquirers integrate?
Is it more difficult to integrate a “merger of equals” than other types of mergers?
Is it more difficult to integrate a “merger of equals” than other types of mergers?