“Running a business and integrating two companies is like having two different jobs and both are equally important.” – Chris Barbin, CEO, Founder, Entrepreneur
Only one-third of mergers and acquisitions successfully create shareholder value. More often than not, this is down to failures during the post-merger integration (PMI) process. Cari Windt, who specializes in organizational design and change management, pins this on a lack of planning; CEO Christ Barbin claims it’s a lack of execution.
These two problems, however, are not mutually exclusive. Executing a poor plan can be more harmful than not executing a plan at all.
Being aware of the challenges of post-merger integrations and developing a thorough PMI process can both go a long way to ensuring yours runs smoothly. But how do you determine if total integration is right for your organization?
This Process Street post will look at the 4 main post-merger strategies and when you should use them:
- The shape of post-merger integration
- Consolidation post-merger strategy: Gain scale and cost synergy
- Transformation post-merger strategy: Reposition your identity
- Tuck-in post-merger strategy: Tech and talent acquisitions
- Bolt-on post-merger strategy: Increase your portfolio
Let’s dive in!