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:

  • Integration Management Office (IMO)
  • Integration blueprint
  • Synergy assessment and tracking
  • Change management and top management support
  • Day 1 and Day 100 readiness and execution
  • Post-close governance model
  • Costs and Benefits Tracking
  • Integration and cost review

We support the Separation journey by covering the following areas:

  • Separation Management Office (SMO)
  • Carveout, operations and technology vendor due diligence
  • Rapid separation assessment
  • Separation blueprint
  • TSA / reverse TSA development & management
  • Separation and standalone cost assessment
  • Separation detailed planning
  • Day 1 and Day 100 readiness and execution

A typical integration journey and approach

Post merger integration model

Note on the approach shown here: The steps during an integration journey as shown in this illustration can vary, depending on the specific transaction, timing, access and engagement.

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