Post merger integration

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The post-merger integration ( PMI , literally integration after a merger ) or fusionsgefolgte integration is the integration phase after a legal merger of at least two companies, unifies in the processes and structures and operations are also merged organizationally.

backgrounds

In the context of mergers and acquisitions (mergers and acquisitions), the post-merger phase is of great importance for the successful success of the transaction. Experts (the definition approaches go back to the 1960s) agree that essential reasons for the failure of some company mergers can be found in this phase. The different corporate cultures and the problem of merging them harmoniously pose a particular challenge. In addition to the basic steps to be implemented, an individual procedure is important in each case. For this reason, the risks and necessary steps are analyzed and planned in advance as far as possible in the due diligence check (careful examination of the risks). During the post merger integration, accounting and reporting , among other things, must be standardized as quickly as possible. These should deliver the legally prescribed monthly, quarterly and annual financial statements as well as uniform financial indicators on which further development and planning are based in a timely manner . The same applies to the expected synergy effects, especially in the area of ​​procurement and system integration. When different ERP systems are brought together , problems of various forms arise that are often underestimated in a due diligence review and not considered deep enough. This often results in an unmanageable cost pool. Unless the business models are halfway identical, it makes sense to consider maintaining separate ERP landscapes, which are often easier enough to solve outside of the central system landscape.

structure

Integration management with the aim of improving the market and competitive position comprises the three main areas of integration conception, implementation and controlling. The five core tasks that are worked out in the conception of the post merger integration are:

  1. Setting up the integration project: selection of staff and elaboration of the integration plan
  2. Interlinking of the management organization: distribution of competencies between company management and operational company units as well as organizational design of the downstream business units
  3. Composition of the management team: Selection of management personnel and the subordinate levels
  4. Alignment of employee behavior: training measures and adaptation of the company incentive systems to the integration requirements
  5. Interlinking of operational business activities: Harmonization or redesign of internal processes, taking into account the interests of both parties

In the literature on post merger integration, the concepts are sometimes differentiated in much more detail. So presented z. B. Langenstein developed a so-called 7-K model with 12 principles.

literature

  • Bernd W. Wirtz: Mergers & Acquisitions Management . Springer-Verlag, 2003. ISBN 978-3-409-11994-8
  • Clea Bauch: Planning and Controlling Post Merger Integration . Springer-Verlag, 2004. ISBN 978-3-322-81818-8
  • Johannes Gerds, Gerhard Schewe: Post Merger Integration. Business success through integration excellence . 5th illustrated edition. Springer Berlin Heidelberg, 2014. ISBN 978-3-642-36702-1

Individual evidence

  1. ^ AW Schoenauer: Behavior patterns of executives in business acquisitions . In: Personnel Administration , 30 (1), 1967
  2. ↑ BP takes over Veba Oel and Aral: Post Merger Integration and Corporate Culture (page 12) ( Memento of the original from September 20, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.synetz.de
  3. ↑ Merger Integration Due Diligence . Dr. KMPopp. Retrieved July 21, 2014.
  4. ↑ In focus: Post Merger Integration ( Memento of the original from May 2, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 30 kB) @1@ 2Template: Webachiv / IABot / www.bfd.de
  5. ↑ Post Merger Integration in the Gabler Wirtschaftslexikon
  6. ^ Karl Langenstein: Post Merger Integration Management . Josef Eul Verlag GmbH, 2007. ISBN 978-3-899-36627-3