The document discusses project management of post-merger integration. It emphasizes that integration requires key trade-offs in strategy and approach. A typical structure involves a steering committee, integration director, and cross-functional teams. Critical tasks include appointing leadership, developing communications, and tracking milestones. Effective integration balances the interests of multiple stakeholders through the merger process.

1. M&A TOOLKIT
Post Merger Integration:
Project Management
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2. “Acquisition integration project
management is project
management at its fullest, most
complex and most challenging”
Vesta
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3. The acquirer will have to make key trade-offs in deciding their
integration approach
KEY INTEGRATION DECISIONS
Strategy First Integration First
Fast and “good
Slow and careful
enough”
Acquirer driven Acquiree driven
Transfer best Transform
practice “best of both”
Integration Integration Process
“CEO” Manager
Fully staffed Lean Integration
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team

4. The Integration Director plays the key project management role
TYPICAL INTEGRATION TEAM STRUCTURE
Steering Committee
[Chaired by CEO, with top line managers of both companies
and key staff heads (CFO, CIO, HR Director)]
Integration Director
[Senior Executive, full time project role]
Integration Team
[Project managers]
Functional work streams
Human Purchasing Finance IT Communications
Resources
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5. People appointments are critical path, so that business leaders
can take responsibility for integrating their function
PRUDENTIAL INTEGRATION TIMETABLE
Source: Prudential Analyst’s Presentation
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6. In a “merger of equals” the major milestone is achieving “one
face to the customer”
REQUIREMENTS FOR “ONE FACE TO THE CUSTOMER”
One invoice
One accounting system
One finance function
One customer service function
“One face to
One delivery the customer”
One supply chain
One logistics system
One logistics function
One salesperson
Salesforce structure decisions
Salesforce appointments
Sales training
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7. General Electric does so many acquisitions it has developed a
portal to track merger KPIs and Milestones
GE’s e-INTEGRATION TOOL
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8. What is front-of-mind for
employees in the
acquired company?
How does this affect
communication in a
merger situation?
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9. The importance of Communication in M&A……..
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10. A merged company has many stakeholders, each of whom have
different agenda and interests
M&A STAKEHOLDERS GOVERNMENT
CUSTOMERS
Local National
SUPPLIERS
EMPLOYEES
DISTRIBUTORS/
BUSINESS PARTNERS TargetCo BuyingCo
CAPITAL MARKETS
Do the messages you want to send different stakeholders have potential to conflict?
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11. Summary: Key points in merger integration
• “Motherhood” generic principles of merger integration plus
deal-specific plan to:
o Protect what is valuable
o Realise the synergies
• Every deal will have a different merger integration
approach, there is no “one right approach”
• Merger integration is demanding as project management can
get - a draining and rewarding work experience
• Remember in every communication that everyone is worried
about their jobs and will scour everything you say for clues and
rumours
• Most common mistakes: Underdoing communication and not
focusing enough people/leadership
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