Post-Merger Integration Checklists by Phases
PRE-CLOSE (GETTING STARTED)
M&A INTEGRATION STRATEGY
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Achieve executive agreement on foundational decisions such as guiding principles, integration success metrics, and end states for the integrated organization.
GOVERNANCE
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Establish the hierarchy of the integration, including Steering Committee, Integration Management Office (IMO), and work streams (i.e., functional teams).
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Select the Integration Manager who will lead the IMO and oversee the integration.
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Create an IMO Charter.
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Determine who will lead the work streams (IT, HR, Finance, Sales, etc.).
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Provide training to integration leaders on a step-by-step, proven integration methodology.
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Define the roles and responsibilities of team leaders; build an integration RACI matrix.
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Review answers to questions about M&A integration teams.
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Establish governance rules for the integration.
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Plan and facilitate an IMO kickoff meeting to formally launch the integration planning process and onboard functional team leaders by reviewing non-negotiables, value drivers, and foundational decisions.
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Work stream leaders kick off their teams.
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Teams complete post-merger integration templates which will become the basis of their future charters.
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Work stream leaders begin weekly meetings with Integration Management Office to report progress, raise issues, and identify and manage any cross-team interdependencies.
DUE DILIGENCE & INFORMATION SHARING
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Set up “clean rooms” to securely share information.
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Communicate rules of engagement and data sharing protocols; transactions subject to regulatory approval have stricter rules.
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Review answers to common questions about integration risks.
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Conduct comprehensive integration-focused financial, commercial, operational, IT, HR, and legal due diligence to identify challenges and opportunities.
COMMUNICATIONS
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Review the questions to expect from employees, customers, suppliers, community, and the media.
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Craft core messages that will become the basis of future communications.
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Create Day 1 Employee Playbook, Day 1 Customers Playbook, and Day 1 Supplier Playbook that include key messages, talking points, and answers to frequently asked questions.
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Review answers to frequently asked questions about M&A communications.
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Brief managers on M&A communication rules including what not to say about the deal to employees.
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Prepare Day 1 integration presentation decks for management.
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Develop detailed communication schedule for Day 1/Week 1.
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Prepare presentation for employees on what will be changing.
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Deliver pre-close briefing to integration teams.
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Emphasize to integration leaders why it is critically important that they: Execute an impressive Day 1, Accelerate the integration, and Achieve early wins.
HUMAN RESOURCES
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Perform HR Organization Comparative Analysis: What are the key similarities and differences between the 2 organizations?
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Develop HR integration team charter.
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Conduct soft due diligence to systematically assess the competencies of leaders in the new organization.
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Review answers to FAQs about culture in M&A.
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Perform culture assessments to identify similarities and differences in company cultures and isolate the culture risk factors that pose the greatest integration challenges.
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Determine how to address cultural differences.
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Initiate talent assessments to identify key leaders and mission-critical employees.
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Develop retention strategies for key talent.
INFORMATION TECHNOLOGY
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Conduct a thorough audit of all technology assets, including hardware, software, and licensing agreements.
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Develop IT integration strategy.
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Develop IT integration team charter.
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Perform a joint security analysis to identify immediate security vulnerabilities.
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Review existing vendor agreements to find opportunities for consolidation and cost optimization.
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Finalize preparation to guarantee all critical systems are fully functional and accessible on Day 1.
FINANCE
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Obtain and analyze due diligence information (i.e., major contracts, change-of-control clauses, forecasts, budgets, policies, liabilities, assets tangible and intangible).
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Assess the target company's internal controls and compliance procedures.
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Learn how the target company closes its books, handles revenue recognition, and manages its reporting schedule.
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Develop finance integration team charter.
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Develop a clear plan for gaining control of cash and bank accounts on Day 1.
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Create a preliminary budget to track all integration-related costs.
SALES AND MARKETING
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Analyze the target company's customer base, market position, and brand perception.
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Develop a sales and marketing integration team charter.
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Pinpoint the top sales and marketing performers from both organizations and develop a retention plan.
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Map the combined product and service portfolio to identify cross-selling and up-selling opportunities.
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Evaluate CRM, marketing automation, and other sales enablement tools.
DAY 1
COMMUNICATIONS
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Issue press release announcing the deal has closed.
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Distribute Day 1 Playbooks to managers.
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Conduct a company-wide meeting, a town hall that includes Q&A.
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Explain to the work force why the deal was done, but don’t oversell it.
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Communicate what is known as of Day 1, information such as: The long-term vision and strategy, The complementary strengths of the organizations, Both companies’ values and history, New leaders and their backgrounds, Merger’s impact on brands, Day 1 interim policies and processes, Delegation of authority, How employees can get further information.
HUMAN RESOURCES
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Begin strategic onboarding by executing administrative, managerial, socialization, and cultural alignment tasks.
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Provide an overview of any immediate changes to benefits and/or payroll and a timeline for when the new plans will be fully implemented.
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Communicate interim HR policies and processes.
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Work closely with the IT team to ensure all new employees have immediate access to necessary systems, email, and equipment.
INFORMATION TECHNOLOGY
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Establish a dedicated IT control center with IT leaders from both companies to address immediate technical issues.
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Provide immediate access to essential systems (email, communication platforms, core business applications).
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Act on any critical security issues and compliance gaps.
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Execute Day 1 checklist.
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Answer frequently asked questions about IT policies.
FINANCE
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Establish full control over all bank accounts of the acquired company.
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Ensure all payment systems, such as payroll and cash flows, continue uninterrupted.
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Obtain immediate, secure access to essential systems, such as the ERP and general ledger.
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Change passwords and access rights for core financial software, including the ERP system and online banking portals.
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Communicate changes to expense reporting, invoice approval, limits of authority, and transaction processing procedures.
SALES AND MARKETING
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Work with IT to ensure all sales and marketing employees have immediate access to the necessary CRM, email, and communication tools.
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Facilitate an all-hands meeting for the sales and marketing teams to build rapport and establish a sense of unity.
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Provide a detailed briefing to all customer-facing employees on how to respond to customer questions.
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Pause any marketing campaigns that are now redundant or in conflict with the new company's messaging.
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Announce new incentive programs that reward employees for going the extra mile for clients during the integration.
30 DAYS
COMMUNICATIONS
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Share more details about the shared vision and strategy for the combined company.
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Publicize and celebrate wins.
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Host open Q&A sessions to answer employee questions directly and transparently.
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Establish clear channels for employee feedback and questions.
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Deliver status presentations to employees.
HUMAN RESOURCES
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Standardize HR policies and procedures.
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Communicate changes to compensation and benefits.
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Consolidate HR functions onto a unified HRIS platform.
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Offer training on new systems, processes, and tools.
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Use informal check-ins and observations to gauge employee morale and address any immediate concerns.
INFORMATION TECHNOLOGY
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Create a single point of contact for IT support (help desk) to manage all employee inquiries and service requests on an ongoing basis.
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Deploy network connectivity solutions.
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Launch unified email for all employees.
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Set up shared file repository and collaboration platforms.
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Communicate with key vendors about IT contract consolidation and new pricing.
FINANCE
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Consolidate banking relationships and optimize cash management.
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Establish a strong, unified control environment.
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Set up interim financial reporting procedures.
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Distribute templates to track synergies.
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Apply synergy program management best practices.
SALES AND MARKETING
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Establish a DEW-LINE (Defense Early Warning) for rapid detection and reporting of any slippage in sales or customer service.
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Provide a hotline for customers to call in questions, complaints, or suggestions.
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Implement new service initiatives aimed at protecting (even improving) sales and service.
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Get physically closer to clients—contact them more frequently and spend more time with them.
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Give employees quick, accurate feedback regarding how things are going in sales and service.
31 - 100 DAYS
COMMUNICATIONS
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Continuously solicit and act on employee feedback.
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Reiterate forward-looking vision, focusing on new products, market opportunities, and the long-term strategic benefits of the merger.
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Provide integration progress updates.
HUMAN RESOURCES
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Partner with businesses/functions on organizational design, reporting relationships, retention, etc.
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Complete talent selection process, make staffing changes expeditiously; finalize organization chart for combined organization.
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Perform M&A employee survey at 100 days post-close.
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Launch initiatives to bridge cultural gaps (e.g., joint team building, shared values workshops).
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Start new performance management cycle, ensuring all employees understand the goals and review process.
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Continue to stay focused on employee retention.
INFORMATION TECHNOLOGY
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Make final decisions on which applications to keep, retire, or migrate.
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Align and merge IT policies and procedures, including security standards and business continuity plans.
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Develop detailed strategy on how data will be extracted, transformed, and loaded from legacy systems.
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Develop a detailed, phased project plan for all migration and integration activities, including timelines, resources, and dependencies.
FINANCE
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Standardize accounting policies and procedures.
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Complete first fully integrated close.
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Harmonize planning and budgeting processes.
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Meet regulatory and GAAP reporting requirements.
SALES AND MARKETING
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Implement strategies to leverage the combined customer base and product offerings.
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Achieve cross-selling and upselling wins.
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Follow a single, standardized sales process ( i.e., a common methodology, pipeline stages, and reporting).
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Roll out a final unified sales compensation plan.
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Perform customer survey at 100 days.
101 - 180 DAYS
COMMUNICATIONS
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Refine external messaging to reflect the unified brand and value proposition.
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Use metrics like employee engagement scores, turnover rates, and brand perception data to measure the long-term impact of communications.
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Create a new, after-the-integration communication plan that supports the company's goals.
HUMAN RESOURCES
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Ensure the new performance management system is fully operational, with clear goals and metrics for all employees.
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Develop and implement long-term strategies for succession planning, leadership development, and workforce planning.
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Perform survey at end of the integration to gauge how employees feel about how the stages of the acquisition process were managed.
INFORMATION TECHNOLOGY
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Systematically migrate data from legacy systems to the new systems.
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Formally decommission legacy applications as migrations are completed.
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Finalize the new, unified technology stack including all remaining software and platforms, ensuring a single, seamless system for the combined company.
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Launch a program for continuous improvement, identifying and optimizing IT processes in the combined company.
FINANCE
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Manage single, unified financial system and reporting structure.
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Drive process optimization and efficiency.
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Perform a comprehensive validation of the financial benefits achieved from the deal.
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Work with HR to develop a long-term talent management and succession plan.
SALES AND MARKETING
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Focus on expanding market share and creating long term value for customers.
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Implement regular check-ins and performance reviews to continuously refine sales and marketing processes.
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Conduct a detailed analysis of the new, unified sales and marketing funnel to identify bottlenecks and optimize the sales process.
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Ensure that financial and operational data are fully integrated with sales and marketing data to generate insights.
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Conduct a final audit to confirm that all sales and marketing synergies—both cost and revenue—have been realized.
