Upload
dalpreet-singh
View
228
Download
0
Embed Size (px)
Citation preview
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 1/16
Post-merger integrationA tailored approach tosustainable transaction success
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 2/16
Editorial:Securing the added value of an acquisition 3
The Oliver Wyman approach:The formula for success in post-merger integration 4
A tailor-made program design:Structured analysis of the parameters 6
The success guarantees of post-merger integration:Eight conscious decisions 8
Case studies:
Creating value in any case 12
Rigorous integration concept:Achieving long-term success in three steps 14
What are the pre-conditions of your next merger? 15
Contents
2
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 3/16
Name change, strategic realignment, integration of sales forces, consolidation
of accounting, plant shutdowns, management audits – and every step doneunder tight deadlines and the watchful eye of employees, customers and the
financial community. This is just a small sample of the challenges and tasks
that managers must face after an acquisition. No other managerial project is ascomplex as a post-merger integration and poses such a high risk of error. Noteven every second acquisition succeeds in generating its expected synergies
and creating additional value.
Oliver Wyman has intensively examined M&A transactions with the aimof removing the complexity from post-merger integration and structuring the
processes in order to provide security in a phase of extreme insecurity andto produce added value sustainably. Drawing on experience from hundreds of
unique transactions, Oliver Wyman has pinpointed special patterns and successfactors, mapping the »DNA« of successful mergers in the process.
The result is a solution based on a diagnostic tool that systematically
addresses all factors, evaluates them and offers an optimal integration concept.Given the uniqueness of each merger, this concept must be customized. Such
an approach eliminates hasty »gut decisions« after a merger. This is becauseit considers all company divisions affected by a transaction, sets priorities and
defines the optimal schedule for the integration. The comprehensive approachtaken by Oliver Wyman also sidesteps the typical mistakes made after
an acquisition, including the delay of painful decisions, the neglect of criticalissues and even the premature termination of the integration process.
As a result of this approach, every acquisition can succeed regardless of its aims,
size or sector. It ensures that the transaction generates crucial added value.
Best regards,
Thomas Kautzsch Henning Thormählen
3
Editorial
Securing the added value of an acquisition
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 4/16
Every second acquisition failsThere were about 30,000 company acquisi-tions annually in recent years. That amountsto 80 transactions a day. The high number of acquisitions was the result of many factors.Globalization and the ensuing need to have aglobal presence were some of them, just asaccelerated technological change and costpressures in saturated markets were. Yet
every second acquisition failed to achieve thedesired results. Instead of generating syner-gies, the transaction drove down enterprisevalue. The success of an acquisition does notarise from skilled negotiations or the pur-chase price. The critical issue is the correct,tailored approach to post-merger integration.The reason for this is clear: Every merger isunique. The expected synergies can be gen-erated and additional growth achieved onlyif two companies do indeed become one.
In retrospect, all parties clearly realize this.In a survey that Business Week conductedamong merger-seasoned managers in theUnited States, nearly 40 percent blamed thePMI process for the transaction’s failure.Only 27 percent faulted the price of theacquisition and only 15 percent cited theparticular company that they selected. Theproblems with the integration process wereprimarily triggered by »soft« factors to whichinsufficient consideration had been given.
The contradiction between the high numberof failed acquisitions and the understandingof the challenge posed by PMI can be resolved
by examining three factors: Every acquisitionis unique in terms of its goals and implemen-tation. It is a first-time experience for mostof the parties involved. And this complexprocess is subject to enormous stress, high
expectations and intense time pressure –and the entire transaction must be carriedout on top of normal business operations.
Structured analysis makes the complexitymanageable
Oliver Wyman focuses on these three pointswith its PMI approach and its supportingdiagnostic tool. Thanks to its long years of
experience with M&A transactions, OliverWyman has been able to crack the »DNAcode« of successful acquisitions and to distillthis unknown into a formula: y=f (x). Here,the in-depth analysis of the parameters, theinput factors x, enables the transaction-specific value of the success-defining levers(y) to be determined. This formula is thebasis for a tailor-made PMI concept. Theanalysis of the parameters addresses threefactors: the business-relatedlogic of a merger,the organizational and cultural barriers as
4
Successful post-merger integration is the key to generating sustainable
added value for companies. Every merger is unique and requiresa customized solution.
The formula for successin post-merger integration
The Oliver Wyman approach
» Oliver Wyman’s
approach makes the com- plexity of an integration
manageable and, as a
result, creates security at
a time of intense stress.«
Thomas Kautzsch, Partner
82%
60%
46%
The challenges of a PMIThe»soft« factors determine success
Stabilization ofthe organization
Culturalintegration
Operationalsynergies
Processoptimization
20%
Source: Business Week survey
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 6/16
Oliver Wyman launches the PMI process evenwhile due diligence is being conducted byanalyzing the critical parameters of a deal:the business-related logic, the organizationaland cultural barriers as well as the sequenceof the acquisition process. This work ensuresthat all parties involved in the transaction
understand the challenges and limiting fac-tors, and make the best possible decisions.
»A new dawn« or »redistributionof the existing?«
In terms of the business-related logic thatunderlies a deal,Oliver Wyman distinguishesamong five strategic objectives. The variousimpacts on the PMI can be illustrated mostclearly by both extreme forms: the consoli-dation of a sector and the entry into newbusiness fields. In saturated markets,compa-nies with similar business activities merge in
order to generate economies of scale and to
expand their market position. The objectiveof such mergers is to produce cost synergiesin all company divisions. This endeavor usu-ally means job cuts, unsettles the affectedpeople from the very start, and triggers pro-tests among employees and unions. For thisreason, a successful integration must be
carried out quickly and completely. In a timeof major uncertainty, fast decisions must bemade and responsibilities assigned at thevery start. This is the only way to avoidparalysis and effectively generate the syner-gies. The approach is completely differentduring an expansion to new business fields.The goal here is to unlock additional salesand earnings potential. The company’s orga-nization remains basically intact. The focusof a successful PMI lies in adapting funda-mental corporate governance functions andin developing optimal conditions for long-
term sales and earnings growth.
6
What has to be integrated in what way? What are the risks? How is
the integration process to be carried out? Oliver Wyman provides answersto these success-defining questions through its systematic analysis of
the parameters. Experience shows that the direction for success is set
at an early stage.
Structured analysisof the parameters
A tailor-made program design
» If you fail to system-
atically analyze the
parameters, you will
overlook opportunities
and risks. Omissions
frequently cannot be
corrected later. «
Henning Thormählen, Associate Partner
Strategic goals
Consolidationof a sector
Regionalexpansion
Extension of theproduct range
Acquisition ofnew skills
Businessadd-on
Business logic
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 7/167
»Soul mates« or »from different planets?«A merger can be smoothly carried out onlyafter one grasps the written and unwrittenrules that govern a company. For this reason,Oliver Wyman also analyzes the »soft«,behav-ior-shaping factors and searches for answersto such questions as: In which organizationalstructures and processes do executives andemployees act? What is the leadership cul-
ture like? How aredecisions made? What typeof incentive systems impact employees’work?The diagnosis tool structurally examines theelusive and creates a secure base for upcom-ing decisions.
The typical example of a takeover of a mid-sized company by a major corporation illus-trates the importance of organizational andcultural barriers. Generally, mid-sized com-
panies bear the mark of an entrepreneur.The owner serves as a company’s informa-tion-providing and decision-making center,and there is no need for any type of formalstructure. On the contrary: In the operational
Organization and culture
Organizational
structures
Communicationculture
Employees’self-image
Degree offormalization, procedures
Motivation,rewards
Decision paths,management style
Attitudeof management
Types
Characteristics
Home run Timeout Adjourned game Short shrift
Takeover process
-Integration processbegins immediately
-Open exchangeof information fromthe start
- Initial decisions canbe made before theclosing
Open, friendly Defensive, destructive
Sequenceof transaction Closing immediately
follows the signingBreak between
signing and closingClosing immediatelyfollows the signing
-Joint integrationplanning
-Initial team building
-Preparation ofguidelines, decisionsonly after the closing
-One-sidedintegration planning
-Clear directionsfor Day Zero andthe integration
-Stabilization ofbusiness is the toppriority
-Integration processmust start at once
-Dynamic and strongleadership by theacquiring company
business, regional or divisional managers aregiven ad-hoc instructions. When such anorganization encounters the formalized pro-cesses of a corporation, conflicts and frus-tration are pre-programmed, unless the PMIsolution precisely addresses these points,builds bridges for the employees of the mid-sized company that enable them to make thetransition to the new business culture and
prevents typical corporate actions that wouldcause paralysis.
»Condemned to wait« or »invited to act?«In an ideal world, every merger would be a»homerun.« Negotiations would be conductedquickly. Both management teams would worktogether. And neither antitrust officials norcritical investors would slow the final closing.Every PMI process would quickly and smoothlystartbefore the closing.Fundamental decisionswould be made very early and unanimously.The integration planning could be donepromptly in joint teams, with full insight into
the other company’s information. But, fre-quently, months pass between the takeoveroffer, the signing and the closing – as a resultof antitrust reviews or, in many cases, of thedoubtful or even hostile attitude of manage-ment. It is just such instances that the PMIprocess must address from the very start.Thetime must be used optimally until closing.Even if the other side refuses to cooperateor if an exchange of information is not yetpossible, the acquiring company can approvea package of measures designed to preparefor Day Zero. From the start, Oliver Wyman
considerspotential barriers to the acquisitionprocess, systematically explores options foraction, and identifies the correct programsand decisions that will result in a successfulintegration.
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 8/168
Oliver Wyman has identified eight fundamental decisions that must
be explicitly made before the start of the integration in order to ensure
a tailor-made, successful PMI process.
Eight conscious decisions
The success guaranteesof post-merger integration:
Drawing on its long years of experience with M&A transactions,Oliver Wyman has pinpointedthe most important decisions that must be made after the analysis of the parameters andbefore the integration. They can be condensed into eight levers. As a result of the correctpositioning of these levers, the fundamental factors of the PMI process can be set. OliverWyman develops the tailored solution from them. Here, the levers are described in their mostextreme form, even though the pure extremes are rarely seen in practice. The integrationconcept derived from them can succeed because it sets the correct course through consciousdecisions.
Type of synergies Restructuring or growth?
Cost synergies Growth synergies
1
At the start of integration planning, clarityabout the type of synergies to be generatedmust be created. In the case of cost synergies,all divisions of both companies are to be sub-
jected to a rigorous review of potential costsavings.From the very start,it must be clearlycommunicated that unpleasant decisionsmust be made and layoffs carried out. At theend of the day, such an integration effort doesnot differ substantially from a cost-cutting,
restructuring or turnaround program. A com-pletely different approach is needed to ex-ploit growth potential. In such instances, theintegration is more like a strategy or growthproject. The nature of the integration is »for-ward-looking« – the focus is placed on under-standing customer needs, evaluating marketopportunities and generating new businessideas in a creative process.
Oliver Wyman ensures that that the basic question involving the type of synergies is consciouslydefined at the very beginning and rigorously converted into corresponding actions.
» Oliver Wyman devises
a tailored solution. Using
eight levers, the PMI
process and the integra-
tion concept drawn from
it are brought to asuccessful conclusion.«
Eric J.Vratimos, Partner
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 10/16
Takeover Merger of equals
clear statement, but places high demands onconduct.Thecompanybeingacquiredwatchesthe acquiring company with mistrust andfears the worst. As a result of misunderstood
strengths, the acquiring company frequentlyacts like the »lord of the manor« and forcesthe employees of the company being takenover to go into inner exile or to resign.
The PMI approach taken by Oliver Wyman defines the proper »integration spirit« and the
suitable communication strategy at an early stage. »Sensors« are built into the integration processto identify issues and to take necessary countermeasures at an early point.
Immediately after signing Deferred until closing
Ideally, no antitrust review is needed, bothmanagement teams work constructively to-gether, and the companies can start theintegration process immediately after theagreement is reached.In this case,the partiesmust quickly get down to defining focalpoints, creating teams and starting work.
One benefit is that the participants openlyshare information, and purposely addressemployees, customers and suppliers in orderto eliminate concerns. In the real world,though,some time frequently passes betweenthe takeover offer and the closing because,for instance, approval by antitrust officials isneeded or the management of the company
beingacquired createsa roadblock.Thisperiodof waiting can and must be used to thinkahead about the integration, to prepare theday of the closing and to formulate a detailedplan. During this period of forced waiting,employees, suppliers and, above all, custo-mers can become unsettled, a situation that
competitors frequently exploit. Intense com-munications are extremely important duringthis stage in order to bring stability to thesituation and to positively influence it.Depen-ding on the potential threat, customer-loyaltyprograms must be created and high-perfor-ming employees retained at the companythrough the use of suitable incentives.
Oliver Wyman ensures that the start of the integration is used optimally by employing farsightedplanning, open communication and the consideration of risks.
Clean team Joint team
When antitrust officials take months to re-view a deal, the acquiring company can onlywork with »clean teams.« Such teams lay thegroundwork for integration in cooperationwith a third party. Because the exchange of information is subject to strict rules, thelimitations of such clean teams must beunderstood from the start. If they are notunderstood, a high amount of »busy work«
may be done. Frequently, a distorted or wrongpicture is created, which, in the worst case,can form the basis for wrong decisions thatmay be difficult to correct or cannot be cor-
rected at all. When the external parametersof the merger permit, it is much more bene-ficial to wait and begin the work with jointproject teams. These teams’ success is linkedto adherence of certainbasic rules.In additionto the right composition and the provision of the necessary capacity, these rules includeinvolvement in the management organization,integration into the previously separated
companies and the fastest possible transferof the project work into the areas of respon-sibility of future managers.
The PMI approach of Oliver Wyman structures the things that seem obvious and provides for thecorrect project organization, the appropriate project members and suitable timing.
10
Start of integration Immediate or deferred?5
Integration team Clean or joint?6
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 11/16
In advance, implicit Explicit, extensive
The more dissimilar the cultures of bothcompanies and the stronger the resistanceof management to the takeover, the greaterthe need for definitive decisions, includingdetailed instructions fromthe acquiring com-
pany. Decisions must be prepared in detailand be made at or shortly after the start of the integration with various stakeholdersexplicitly being included in the process.In the
context of a friendly takeover of a companywith a similar way of thinking, this can bedone during a preliminary stage. Here, de-cisions are frequently made about the neworganization, future business policies and
even personnel during informal meetings,often scribbled down on the famous »nap-kin.« In this case there is no need for exten-sive analysis and opinion-shaping processes.
Post-merger integration: Everything considered?
The PMI approach ensures that all fundamental decisions that determine the success of anintegration are made in a timely manner and under consideration of all relevant factors.On the basis of decisions about the eight levers, Oliver Wyman works with its clients to createa tailor-made integration concept and to put it into action.
Oliver Wyman analyzes the situation, and defines the right mix of formal and informalapproaches. In controversial takeovers, it is important to make conscious decisions at the rightplaces about whether to rule out discussion and make a direction-setting decision, or whethera joint search for a solution will be undertaken.
En passant Explicit, comprehensive
During the takeover, statements are madeto stress the importance of intense changemanagement to the ultimate success of thetransaction. After the initial euphoria ex-pressed as part of sweeping communicationactivities fades, the change-managementpro-gram frequently boils down to a few work-shops and a sporadically updated intranet.This is not the result of evil intention, but of the complexity of a PMI process. The mergerof two companies with similar backgrounds
requires fewer explicit actions than one invol-
ving companies with dissimilar backgrounds.The key is for the appropriate employees tomeet at an early stage and to share their ex-periences.In othercases,change managementis the critical factor leading to the long-rangesuccess of a merger. Workshops, get-togeth-ers, town-hall meetings, outdoor trainingsessions and many other measures must beemployed over a longer period of time inorder to form one company out of two. Inthis case, a rapid change process should not
be expected.
Oliver Wyman determines how much change management is required, defines the best formand provides tools to review the program.
11
CostsSynergies
Speed
Extent
Integration spirit
Integration start
Team structure
Fundamental decisions
Change management
Growth
Fast, under time pressure Mid-range perspective
All areas No or partial integration
»Takeover« »Merger of equals«
Immediately after signing Deferred until closing
Clean team Joint team
In advance, implicit Explicit, extensive
En passant Explicit, comprehensive
Basis for decisions Informally in advance or explicitly after the fact?7
Change management Implicit or explicit?8
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 12/1612
Case studies
Consolidation in plant construction
Same objectives, different culturesWith the takeover of a French competitor, aGerman plant construction company sought
to expand its leading market position and tofill out its product portfolio.The potential syn-ergies in production, procurement, sales andadministration were obvious. The prospect of merging with an economically healthy com-pany with a similar background proved to beconvincing arguments for the French manage-ment. These executives welcomed the take-over, and antitrust officials raised no objec-tions. At first glance, the companies’ culturesappeared to have few differences: Both wereled by engineers, were technology driven andwere successful players in the world market.But the PMI review conducted by OliverWyman uncovered significant organizationaland cultural barriers resulting from thefact that a centrally managed company wasmerging with a regionally operated businesswith powerful heads of particular territories.
A quick, complete acquisitionThe creation of one company from two sodiverse organizations requires fast action.A joint team intensively began laying thegroundwork for »closing readiness.« From thevery start, the focus of communications wason a »fair takeover.« The acquiring company
presented two non-negotiable points on theday of the closing, or Day 0: the principle of aglobal business and an organization basedon business areas. As a result, the days of theautonomous regional bosses were largely
over. In anticipation of opposition to the plan,the acquiring company launched an intensivecommunication campaign at all levels of the
company. Shortly after the closing, the firstworldwide integration conference was held.Its purpose was to gain the support of execu-tives for the integration. Employees attendedlocal »town hall meetings« where they couldmake up their own minds about the plan. Inaddition, »PMI ambassadors« went to work atall locations in an effort to drum up supportforthe new company.As a result of thenumer-ous integration projects conducted aroundthe world and the large cultural differences,a strong program management office was setup. It coached the integration teams, moni-tored implementation and served as theheart of the entire PMI process.
Surge in growth with lower costsBy eliminating organizational and culturalbarriers, a joint culture with a uniform orga-nization based on business areas was createdmuch faster than anticipated. Within fourweeks, decisions about the management or-ganization and personnel had been made,enabling the focus to be placed on functionalconsolidation and the actual integration to bequickly handed over to the new line organi-zation.Oliver Wyman made a significant con-
tribution to the timely determination of theacquisition’s spirit, defined the suitable ap-proaches to solving the cultural and organi-zational challenges, and, as a result, removed»roadblocks.«
The approach applied by Oliver Wyman facilitates successful post-merger
integration in all sectors and under diverse conditions. A tailor-madeintegration concept makes for a sustained increase in enterprise value.
This is reflected in two case studies involving plant construction and
medical technology.
Creating value in any case
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 13/1613
CostsSynergies
Speed
Extent
Integration spirit
Integration start
Team structure
Fundamental decisions
Change management
Growth
Fast, under time pressure Mid-range perspective
All areas No or partial integration
»Takeover« »Merger of equals«
Immediately after signing Deferred until closing
Clean team Joint team
In advance, implicit Explicit, extensive
En passant Explicit, comprehensive
Expansion in medical technology
Delayed launch complicates integrationBy acquiringa small listed competitor,a Euro-pean medical technology company was ableto move into a high-margin business field.Although the management of the companybeing acquired supported the transaction,six months passed between the signing and
execution of the takeover. During this period,no active preparations for the integrationwere undertaken, and the competition luredaway the first customers.
At the start of the work, OliverWyman talkedto the company about the importance of customer loyalty. The diagnosis tool showedthat the lever of growth synergies was close-ly linked to rapid integration of sales as wellas the elimination of cultural differences.While the mid-sized company bore the stampof an entrepreneurial personality, the acqui-
ring company was organized according tothe formal structures used in a group.
Focus on sales and marketingThe central focus of the PMI process involvedthe consolidation of the European sales or-ganizations. The acquiring company was re-presented by subsidiaries in most countries.The mid-sized company, on the other hand,had a network of strong sales partners. Thetransfer of customers into the new organiza-tion as well as the retention of decision ma-kers in the company being acquired throughthe use of a local incentive program yielded
the most growth synergies. In an additionalstep, the products of the mid-sized companywere introduced into growth markets outside
Europe. The expansion into new markets, theintegration into a strong direct-sales system,financial incentives and intensive commu-nications convinced the employees of themid-sized company. Just 10 weeks after theclosing, they were acquainted with the re-spective country-specific PMI roadmap. The
acquiring company carefully carried out theimplementation in individual countries toavoid annoyingcustomers and topemployees.The positive attitude of sales representativesas well as the early dialogue about the bene-fits of the transaction proved to be successful.The number of resignations remained low.
Expansion into new marketsDespite the delayed start and the loss of some customers, the company succeeded ingenerating the expected growth synergies:Within three years, it boosted sales by 30 per-
cent and improved its margins at the sametime. Outside Europe in particular, the pro-vider profited from its expanded range of pro-ducts sold under a single brand. As a resultof the work done by Oliver Wyman, the sig-nificance of sales integration was recognizedand the necessary recommendations weredefined even before the closing.
Project case studies of successful post-merger integration
Consolidation in plant engineering
Expansion in medical technology
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 14/16
On the basis of the analysis of parametersand the early decision about the eight levers,Oliver Wyman defines the individual andoptimal integration concept.
1. The best possible preparationCompanies should start planning the post-
merger integration as early and as thorough-ly as possible,preferably before the closing, inorder to be prepared to meet the challenges.Day0 must be intensely preparedthrough theuse of extensive readiness checklists. Otherfocal points include the strategic direction of the new company, the defining of objectivesand decisions about managerial positions.Drawing on this basis of information, projectteams can work out the integration concepts.They identify, prioritize and plan the neces-sary projects, including estimations aboutexpectedsynergiesthatarediscussedwiththeoriginal planning of the M&A team. In thisphase, identifying quick wins (e.g. volumebundling in procurement) plays a major rolebecause they underscore the logic of themerger at an early stage and to all involved.In addition to these integration-related topics,the communicationroadmap mustbe charted.It shows who will be informed at which timeabout which issues. Depending on the resultsoftheculturalassessmenttheextentofchangemanagement and the necessary measureshaveto be defined.If high-performing employ-ees are expected to resign, suitable retentionprograms should be created. Even though
much information is lackingin thisphaseandan extensiveamount of uncertaintyexists,thediagnostic tool of Oliver Wyman enables atailor-made integration plan to be systemati-cally developed.
2. Operationalize the plansOnce the sales contract is concluded, the»hot phase« begins. Both companies canexchange all relevant information and, asa result of preliminary work, quickly makeindividual integration concepts ready forimplementation. The expected synergies are
broken down by region and department. Aproject-management office coordinates allactivities, but increasingly integrates the lineorganization.Concerns among employees areto be quickly dispelled through the use of clear communications. As a result of thecomplexity of the first weeks and the intenseexternal pressure, companies are tempted inthis phase to put off, water down or simplyignore inevitable decisions. Oliver Wymanensures that the fundamental decisions aremade in a timely manner and that the pro-gress achieved in the integration process isconstantly monitored and documented.
3. Rigorous implementationThe appeal of the new fades after a fewmonths. This is the exact point that determi-nes whether a merger will generate sustain-able added value. Now, the line organizationsare introducing the integration function byfunction and country by country. In the pro-cess, they grow into a single unit. In thisphase, every employee feels the effects of thechanges. Frequently, the management has al-ready mentally closed its book on the merger.The work by Oliver Wyman facilitates strict
monitoring of progress and helps to ensurethat the integration is not forgotten and thatthe goals are reached in the long term.
How can two companies be formed into one powerful organization
with a shared mission amid intense time pressures, high expectationsand the demands of the daily business world? Oliver Wyman creates
an individual concept for each acquisition.
Achieving long-term successin three steps
Rigorous integration concept
» The planning of the
integration must be
started as early as
possible.The approach
employed by Oliver
Wyman ensures that
the right priorities
are set during every
phase.«
14
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 15/16
What are the pre-conditionsof your next merger?
A merger adds many questions to the agenda. These include business
logic,the merger processes themselves,organizational and cultural barriers,cost or growth synergies, merger of equals or takeover, as well as implicit
and explicit change management. In a timely manner, the parameters and
their impact on the eight levers are analyzed. From this analysis, Oliver
Wyman derives the integration concept for a PMI project, which, on its own
terms, is unique and complex.
Use this form to evaluate your PMI situation. We will be glad to talk to
you about your considerations, and jointly define the parameters and
success factors. Working with you, we will draw on our project experience
to develop an initial tailored integration concept.
If you are interested in a non-binding workshop, we will be happy
to assist you.
CostsSynergies
Speed
Extent
Integration spirit
Integration start
Team structure
Fundamental decisions
Change management
Growth
Fast, under time pressure Mid-range perspective
All areas No or partial integration
»Takeover« »Merger of equals«
Immediately after signing Deferred until closing
Clean team Joint team
In advance, implicit Explicit, extensive
En passant Explicit, comprehensive
My PMI situation:
15
8/8/2019 Post Merger Integration En
http://slidepdf.com/reader/full/post-merger-integration-en 16/16
With more than 2,900 professionals in over 40 cities around the globe, Oliver Wyman is an international management
consulting firm that combines deep industry knowledge with specialized expertise in strategy, operations, risk management,
organizational transformation, and leadership development. The firm helps clients optimize their businesses, improve
their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities.
Oliver Wyman is part of Marsh & McLennan Companies [NYSE: MMC].
For more information, please visit:
www.oliverwyman.com
0
/ 0 1 / 0 9
The PMI team has an interdepartmental function within the
Oliver Wyman sector units. Our experts always work closelywith sector specialists to find fast, market-ready solutions.
© 2008 Oliver Wyman. All rights reserved.
Contact
MunichThomas Kautzsch
+49 89 939 49 460
Henning Thormählen
henning.thormaehlen@ oliverwyman.com
+49 89 939 49 423
Oliver Wyman
Marstallstr. 11
80539 Munich
Germany
ChicagoEric J. Vratimos
+1 312 902 7972
Atlanta Barcelona Beijing Boston Calgary Chicago Cleveland Columbus Dallas Detroit Dubai Dusseldorf Frankfurt
Hamburg Hong Kong Houston Istanbul Leatherhead Lisbon London Madrid Melville Mexico City Milan Milwaukee
Montréal Munich New Delhi New York Paris Philadelphia Pittsburgh Portland Princeton San Francisco São Paulo Seoul
Shanghai Singapore Stockholm Sydney Toronto Washington D C Zurich