Post-Merger Integration is hard – but it doesn’t have to be. Top five integration practices to accelerate deal value

By: Mikael Kruhsberg, Managing Partner at Global PMI Partners

Independent on what studies you look at, Post-Merger Integration is hard. Harvard Business Review reports that somewhere between 70% and 90% of mergers fail during the post-merger integration phase. In a study by PWC over 70% of the integration projects did not deliver the expected deal value.

However, PMI does not have to be hard. We argue that while executing a successful integration will require skills, planning and management attention, these are all addressable items, and your organization can create all the required foundations for planning and executing an integration that will deliver on the planned value. The starting point for this is to acknowledge and be honest about your organization’s integration experience and capacity.

About Global PMI Partners We have a team of over 350 experts ready to support your acquisition integration or carve-out in every step along the road. From early planning stages to integration project management and specific workstream support. 

Here are five clear and concise practices that will improve your chances of delivering on the deal value.

1. Plan early: Start early and set up efficient governance to prepare for Day 1

• Launch the integration project at least 30 days pre-close to ensure leadership engagement and availability.
• Establish clear governance structure from start, including an Integration Management Office (IMO), steering committee, defined roles and responsibilities.
• Implement a “weekly meeting rhythm” to address and resolve issues swiftly.

2. Create Strategic Clarity: Develop a clear integration strategy with aligned target operating model and key workstreams

• Translate the deal thesis into clearly articulated value drivers that will guide the integration team in workstream planning.
• Ensure that the target operating model is fully endorsed by the executive team, including the leaders from the acquired company.
• Define end-state pictures for processes and IT requirements early on.

3. Keep Change Momentum: Manage change effectively by prioritizing communication and mitigating cultural friction.

• Develop a comprehensive Day 1 communication plan, including stakeholder analysis and well-prepared materials for employees and customers.
• Conduct cultural assessments and workshops to increase awareness and bridge differences.
• Maintain consistent post-close integration updates and monitor for emerging issues.

4. Maintain a Value-Driven Focus: Concentrate efforts on initiatives that drive value, avoiding distractions.

• Ensure that the workstream leaders fully understand the deal’s value proposition and the required prioritizations.
• Focus on critical areas like go-to-market, target operating model, product roadmaps and technology infrastructure.
• Establish transparent tracking of synergies and success metrics.

5. Execute with Rigor and Diligence:

• Maintain a weekly IMO meeting rhythm to keep momentum, drive and focus
• Use these meeting to raise, escalate and resolve issues across functional teams, with clear timelines for resolution.
• Optimize the program and functional plans as the integration progress towards Day 90

To secure success of your post-merger integration, a structured, strategic, and disciplined approach is crucial. By including these five integration practices, your organization can overcome common integration pitfalls and realize a higher value from your next acquisition. Remember, success in PMI is within reach—it's about preparation, persistence, and a clear focus on what truly matters