Answers to Post-Merger FAQS on:
Best Practices
Communication
Day 1
M&A Integration Teams
Acquisition Integration
Culture
Risks
Managing People
Post-Merger Exam
Based on Answers to FAQs
When should the M&A integration planning process start?
Planning should start two to three months before close or when the letter of intent is signed, whichever is earlier. It is difficult to deliver a smooth, effective Day 1 and achieve quick successes without adequate pre-close planning. Starting early creates the momentum to integrate rapidly after close.
What is the first step in M&A integration planning?
What are the steps in the post-merger integration process?
- Define Integration Strategy and Guiding Principles
- Determine M&A Integration Governance
- Conduct Joint Integration Management Office (IMO) Meeting
- Provide Post Merger Integration Training
- Develop Post Merger Integration Risk Management Plan
- Develop Culture Integration Plans
- Develop Post Merger Integration Communication Plans
- Develop Post Merger Staffing & Retention Plans
- Develop M&A Project Integration Plans
- Execute Acquisition Integration Plans (Includes Day 1 Plans)
- Capture M&A Integration Lessons Learned
What are the key elements in an M&A integration plan?
An integration plan should always include these 5 elements:
1. End States - Integration complete" should be defined. If it isn’t, teams will feel like they are in a race without a finish line.
Related presentation: End-State Transition
2. Governance - Determine the integration hierarchy, decision-making protocols, and escalation routes so problems requiring senior-level input can be quickly addressed and resolved.
Related presentation: Post-Merger Integration Framework
3. Communications - Planning communications in M&A takes much more effort than it does under more stable circumstances.
Related playbook: Day 1 M&A Playbook: Employee Communications
4. Tasks - Each task in a team’s plan should have an assigned owner plus start and completion dates.
Related playbook: M&A Integration Playbook
5. Early Wins - Acquirers can help silence the skeptics by achieving goals that provide hard evidence the merger is rapidly bringing benefits.
Related article: Engineer Early Success in Your Merger
What is an M&A integration team charter?
What is a 100-Day Integration Plan?
To what extent should acquirers integrate?
That depends on the rationale for the deal. For example, if an acquisition is being made to achieve economies of scale, then a full integration may be the best approach. However, if the deal is done to expand into new regions or acquire new talent, then the best way to create value may be to selectively integrate in only areas that overlap.
What is an M&A integration end state?