The Importance of M&A Integration (Accelerate the Capture of Synergies) - Articles
Too often, executives of mid-market companies underestimate the management time, effort and energy required for the post-merger integration project, resulting in a significant toll on management capacity and a costly mistake. While they may spend significant fees on deal advisors, they often then bring the post-deal work in house.
After the deal-closing celebration dinner, they tell their management teams, who are not experienced in M&A, and who also have full-time daily responsibilities, to "just integrate the two companies." The following articles highlight the problems with that approach.
- The importance of post-merger integration - Deal Law Wire - This article highlights five key takeaways for post-merger integration success
- Why Half of All M&A Deals Fail, and What You Can Do About It - Forbes - Feedback from CEO of mid-market companies - In essence, the consequences of a bad deal are far greater for mid-market companies than for big corporations.
- The Big Idea_ The New M&A Playbook - Harvard Business Review - Article tries to guide executives in selecting, pricing and integrating acquisitions to avoid the 70% to 90% failure rate.
- Post-Merger Integration _ Mergermarket - Highlights from a study by Mergermarket, commissioned by Merrill Corporation, that says the success of any merger integration plan is one of the most challenging parts of the overall M&A process.
- EY Merger Integration Survey_ The right combination - Ernst Young study - 80% of respondents said they would speed up the pace of integration for their next deal.
M&A Studies and Industry Outlook
Below is a collection of papers and studies that provide informational background on the various aspects of merger integration. The need for such services is well documented for transactions in excess of $1 billion, and those deals are served by the large consulting firms. At PMI Advisors, we provide this critical service for mid-market companies, where the consequences of failed M&A deals can be much greater than the consequences of failed deals for major corporations.
- Bain & Company - The 10 steps to successful M&A Integration - Tailor integration to identify value, keep the right people and focus on critical decisions.
- McKinsey & Company - Perspectives on Merger Integration - A McKinsey perspective on the opportunities and challenges
- RR Donnelly 2016 Dealmakers Guide - Dealmakers are adapting to new technologies and fine-tuning old methods to make sure their deals are more successful
- PwC's Deals M&A Integration Practice - Legal Integration - The legal function's role in enabling integration
Herding Chickens: Innovative Techniques for Project Management - Author: Dan Bradbary
Publisher: Wiley/Sybex/Harbor Light Press
Note from the author:
I wrote this book in 2005, after selling my project management consulting company, when a publisher approached me with the idea. I said that it would be a book written in a humorous tone, hence the title "Herding Chickens" and contain many "in-the-trench war stories" from managing projects and people. Hopefully, you will pick up a few ideas and get a couple of chuckles along the way. It’s basically Project Management 101.
Prior to launching PMI Advisors in 2016, I was the Founder and CEO of V-Rooms™ Virtual Data Rooms, a company that provided secure online document exchange services for thousands of M&A transactions over its 10-year history. I sold V-Rooms in 2015. Before V-Rooms, I owned Project Management Services, Inc., which over a 12 year period grew to a 150-person consulting firm that provided management professionals and systems to assist Fortune 100 companies with their post-merger integration and other special projects. For instance, we assisted many corporate sponsors for years preparing for the 1996 Atlanta Olympic Games with a project deadline that could not be missed!
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