Step 1: Define M&A Integration Strategy and Guiding Principles

M&A Integration

M&A integration is the process of consolidating a buyer and seller to the degree necessary to achieve the anticipated benefits from a merger or acquisition. An M&A integration strategy defines the integration targets, priorities, success metrics, non-negotiables, and the extent of the integration.

The first step in an M&A integration is to achieve agreement among your executives on the integration strategy. They should clarify it at least two to three months before the deal closes.

When M&A integration teams rush into planning without clarity from top management, they are likely to make the wrong assumptions, spin their wheels, and veer off on tangents. Before teams get rolling, they need clear objectives from above so they can proceed in the right direction and develop effective plans.

Senior executives should also agree on set of acquisition integration guiding principles that will serve as basis for decision-making and ensure integration teams act in alignment. 

In this section of the website, our presentations, books, and articles cover the strategies, best practices, and guiding principles that can help you achieve integration success.

Initial Decisions

Best Practices

Guiding Principles

End States

M&A Integration Books

Initial Decisions

Global Steering Committee M&A Integration Planning

Global Steering Committee M&A Integration Planning

Meeting Objectives

Review and agree on the:

  • Role of the Integration Steering Committee
  • Role of the Integration Manager
  • Integration Team Structure
  • Integration Value Drivers Integration
  • Guiding Principles
  • Non-Negotiables
  • Integration Approach. . .
15 Areas Executives Should Agree On Before Integration Planning

15 Areas Executives Should Agree on Before Integration Planning Begins

Integration teams need clear direction in 15 areas before they begin detailed planning.

When M&A integration teams begin planning without clarity from top management, they are more likely to make the wrong assumptions, draw different conclusions, and veer off on tangents.
M&A Integration Strategy: Presentation to Board of Directors

M&A Integration Strategy: Presentation to Board of Directors

Prepared by Steering Committee and IMO

Topics

Integration Team Structure
Team Targets
The Challenge
Integration Team Mission
Improving Financial Performance ...
Steering Committee M&A Integration Initial Decisions

Steering Committee M&A Integration Initial Decisions

Agenda

Guiding Principles
End States
Priorities
Non-Negotiables
Risks
Post-Merger Integration Strategy and Teams

Post-Merger Integration Strategy and Teams

Agenda

  • Integration Guiding Principles
  • High-Level Integration Plan
  • Integration Milestones on Timeline
  • Value Drivers
  • Governance Structure
  • Governance Teams
  • Steering Committee Roles & Responsibilities
  • IMO Roles & Responsibilities. . .
Pre-Merger M&A Integration Planning

Pre-Merger Integration Planning

Pre-Close M&A Integration Efforts

  • Identify comprehensive list of projects within each work-stream
  • Assess internal and external staffing requirements
  • Establish calendar by functional area and for entire transition effort
  • Identify what work will be done pre-close...
Steering Committee Roles and Responsibilities

Steering Committee Roles and Responsibilities

The Steering Committee is typically comprised of senior-level executives. The size of the committee will vary depending on the importance, scope, and complexity of the integration.

The Steering Committee:

  • Makes foundational decisions: Specifies the integration’s objectives, success metrics, assumptions, and non-negotiables...
M&A Integration Success Metrics

M&A Integration Success Metrics

Agenda

  • Success Metrics 
  • Sales and Costs
  • Retention and Company Image
  • Internal Communications and Training
M&A Presentation Template

M&A Presentation Template: Strategy and Structure

Understanding the Deal 4 S’s

  • Strategy for the deal
  • Synergy for the companies
  • Structure of the deal
  • Steps for the M&A integration …
Healthcare M&A Change Management Strategy

Healthcare M&A Change Management Strategy

A well-crafted change management strategy helps ensure successful integrations. Acquirers can achieve their goals while mitigating risks by prioritizing patient care, employee well-being, and communications.
5 Types of Post-Merger Integration

5 Types of Post-Merger Integration

The rationale for a deal helps determine the type of post-merger integration. All post-merger integrations are one or more (a combination) of these five types:

Best of Both
Additive from both sides

Transformation ...

Best Practices

The Best Predictor of Post-Merger Integration Success

The Best Predictor of Post-Merger Integration Success

We’ll start with a one-question quiz: What do you think is the single best predictor of M&A integration success?

And here’s the answer: The length of the transition period.

The longer you take to integrate, the closer you live to the edge. Disappointing deals correlate highly with slow consolidation. . .
10 guidelines for a successful M&A integration

10 Guidelines for a Successful M&A Integration

1. TRUST IN SPEED

In years past, the conventional wisdom on the integration process advocated a slow transition. The rationale went like this: This is important. We must move slowly, carefully, and minimize mistakes. We can’t afford to overwhelm people with change.

It all sounded so logical. It seemed like such a caring approach so far as the people were concerned. The problem is, the thinking was dead wrong. Basically, employees hate a slow integration process. The approach lets problems fester, and it fails to take advantage of the energy stirred up by a merger event...
Employee Retention After An Acquisition

Employee Retention After An Acquisition

If you’re involved in a merger, some of your best people in the acquired company are job hunting. Count on it.

Maybe you don’t have many who are circulating their resumes yet, but you can bet the majority are considering their options. Mergers are good at getting people’s attention. Everybody wakes up, looks around, and wonders how his or her career will be affected. …
 
M&A Day 1: The Power of Opening Moves

M&A Day 1: The Power of Opening Moves

So the deal closes. It’s “Day 1.” Are you ready for one of management’s big moments …
Post-Merger Integration Best Practices

7 Critical Post-Merger Integration Best Practices

Many guidelines in M&A only apply to certain situations. However, these seven integration best practices should almost always be followed: ...
7 Secrets for a Kinder, Gentler M&A Integration

7 Secrets for a Kinder, Gentler M&A Integration

Beware of the integration do-gooders. 

Chances are you have a few of these people scattered across the management ranks.  I’m talking about soft-hearted managers, those misguided souls who seem to think you can run an effective integration without upsetting anyone. …
 
10 Key Pre-Merger Integration Questions

10 Key Pre-Merger Integration Questions

Ten questions about managing people you should ask yourself before beginning integration planning.
 

Guiding Principles

M&A Integration Guiding Principles: Examples from 5 Deals

M&A Integration Guiding Principles: Examples from 5 Deals

Executives agree on a set of principles that will help direct the actions of integration teams such as:

  • Who makes the final call if and when any impasse is reached?
  • Which, if any, integration methodology will be followed?
  • How fast will the integration proceed?
  • How open will communications be?
10 M&A Integration Guiding Principles

10 M&A Integration Guiding Principles

First 3 of 10 Guiding Principles

  1. The transaction will benefit customers and the community
  2. All stakeholders will contribute; Acquirer is accountable and responsible for all decisions
  3. Integration leadership is committed to providing:
  • Transparency and predictability
  • Clarity, direction, and decisions
  • Consistency across the program

End States

M&A Integration End States

M&A Integration End States

What the organization will look like at the conclusion of the integration.

End states involve big questions (usually initially defined by executives) to provide direction to the functional teams such as:  

  • What functions will you integrate now, later, or preserve indefinitely?
  • What IT systems will you use in the short-term and what ones will use down the road . . .
End State Cover

End State Post-Merger Vision

Agenda

End State Vision for: 

  • Company
  • Sales and Marketing
  • Purchasing
  • Manufacturing
  • Customer Support
  • Engineering
  • Administration . . .

M&A Integration Books

Smart Moves

Smart Moves: A Crash Course on Merger Integration Management

Smart Moves, by Price Pritchett, lays down the ground rules and the guiding principles that will improve your odds for integration success.

Learn—

  • How to avoid the 50% drop-off in productivity that routinely occurs
  • Techniques for retaining key talent
  • Why you must cut the typical high-risk transition/integration period in half
  • Ways to minimize employee resistance...