In the process of acquiring or merging with another company, many companies experience massive upheaval. Having focused heavily on the transaction, firms tend to neglect the importance and complexity of the post-merger integration (PMI) phase. A successful post-merger integration is crucial to realise and maximise the value of a deal.

The upheaval is a natural part of most mergers, as key functions and employees are to be integrated in a cohesive manner across multiple areas of the business, including but not limited to supply chain, production, back-office functions and more, while the cultures of the organisations are to find common ground.

In addition to the complexities arising from a merger, the integration phase is typically characterised by heavy time pressure, critical decisions and a multitude of stakeholders to consider and involve. All dimensions are crucial to ensure a successful integration, while limiting any disruptions to business continuity during the integration phase.

At KPMG, we understand the importance of PMI to realise and maximise deal value, and have years of experience managing the complexities arising from merging companies. Our team works closely with owners and top management to successfully drive, coordinate and complete their post-merger integrations.

Our team is cross-functional and carries experience from multiple sectors, deal types and ownership structures (private equity, large corporations). As part of the KPMG network, we have the ability to draw on subject matter experts in any country, enabling us to handle any domestic or cross-border specific integration challenges.

We support the integration journey by covering the following areas:

  • Establishing the Integration Management Office (IMO)
  • Establishing and driving integration work streams
  • Drafting work stream charters, setting targets and monitoring progress
  • Designing and implementing management reporting 
  • Developing and tracking the synergy case
  • Change management and top management support
  • Preparation for ‘Day One’ of the effective take-over of the target
  • Identification and realisation of ‘quick wins’
  • Identification, prioritisation and tackling of the first 100 days post completion issues (including inter alia rationalisation of systems, retention of key staff and building a management team) 

A typical integration journey and approach

Post merger integration model

Illustrative only. Sequence and relevance of steps will vary depending on transaction; steps 3 – 7 may also occur after Close, depending on timing, access and engagement..

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