Post-Merger Integrations (PMI): Synergy Capture and Cultural Integration

PMI (Post-Merger Integrations) represent a project domain characterized by non-obvious priorities and high-impact pitfalls. Consequently, PMI is more experience-correlated than other types of M&A projects – and quite different from the "financial analysis" parts of a regular M&A process.

The Need for a Balanced Approach to Post-Merger Integrations

In order to be successful, post-merger integrations need to focus on a balanced set of priorities – from hard-core synergies to the practical combining of two different corporate cultures. This "hard-soft" approach is critical in order to reduce acquisition risk. Failed acquisitions or mergers are typically explained by a lack of integration focus – with weak attention to organization and cultural issues as the most fundamental causes of failure. Why?

Synergy Capture vs. Cultural Integration

Synergy capture is an obvious focus area (but not a very challenging one to solve), requiring mostly an analytical skill-set. It is more difficult to handle the increased intricate issues related to organizational resistance and "us vs. them" attitudes. Consequently, the usual tendency is to under-prioritize these areas when compared to synergy projects. But a balancing act is critical.

The following illistration is taken from White Paper #1 which introduces 10 steps to a succesful post-merger integration project.
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Illustration: Ten Guidelines for Successful Post-Merger Integrations

For a full web version of this white paper, see the article: On Synergies and Poor Judgement. A shorter web version is provided in this LinkedIn article.

Special Requirements in Scandinavia

In Scandinavia, a balanced approach to integrations is of particular importance, since organizations are characterized by large degrees of autonomy and delegated decision making – and because employees require and demand attention to a broader set of issues than those typically found when executing mergers in other cultures.

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Facts

Remis AS and Ketil Wig offers advisory and consulting services to foreign owners, handling key priorities related to investments and operational assets in Norway. Typically post-merger integration assignments are related to handling a bolt-on acquisition in Norway or Scandinavia; or the merger of two Norwegian entities as the consequence of an international acquisition or merger.

  • 10+ post-merger integrations (PMI) projects across Europe. Focus on merger situations requiring speed and precision balanced with synergy capture, profit improvement, strategy alignment and attention to cultural sensitivity.

  • Business unit core size of US$100-1,000M.