More information:https://flevy.com/browse/flevypro/post-merger-integration-pmi-8-decision-levers-3945 M&A transactions vary considerably and demand tailored solutions keeping in view the prevalent circumstances; culture of the 2 combining organizations; and internal and external forces influencing the transaction. This presentation provides a detailed overview of the 8 key levers that help make conscious critical decisions well before any integration project: 1. Type of Synergy 2. Required Pace of Integration 3. Degree of Integration 4. Nature of Integration 5. Commencement of Integration 6. Integration of Project Team Organization 7. Decision-Making Style 8. Transaction Change Management These fundamental levers systematically address all factors affecting an M&A transaction and aid in devising an optimal integration approach. The slide deck also includes some slide templates for you to use in your own business presentations.

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Conducting PMI? Here Are the Critical 8 Decision
Levers to Evaluate
Contributed by Mark Bridges on September 24, 2019 in Management & Leadership, Operations & Supply Chain, Organization, Change, & HR
Post-merger Integration
Training
131-slide PowerPoint presentation
Post Acquisition Integration
Strategy (Post Merger
Integration - PMI)
79-page PDF document
Post Merger Integration (PMI)
Best Practice Framework
28-slide PowerPoint presentation
Change Management in Post-
merger Integration (PMI)
24-slide PowerPoint presentation
Mergers and Acquisitions (M&A) are unique and complex endeavors. These initiatives demand tailored solutions keeping in view the varying
environments, ways of doing business, culture of the two combining organizations, and internal and external forces influencing the deal.
These transactions necessitate making 8 important decisions based on thorough deliberation and analysis of all relevant factors well before
the integration process. These fundamental decisions and relevant factors form the 8 decision levers of Post-merger Integration
(PMI). These 8 decision levers of PMI are essential for devising an optimal integration approach and, subsequently, the success of an M&A
initiative:
1. Form of Synergy to Be Created: Cost-cutting versus growth

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2. Required Pace of Integration: Quick versus steady
3. Degree of Integration: Extensive versus partial
4. Nature of Integration: Buyout versus a merger
5. Commencement of Integration: Urgent or delayed
6. Integration Project Team Organization: Clean or shared
7. Decision Making Style: Implicit and prompt versus lengthy and analysis based
8. Transaction Change Management: Tacit versus one that requires comprehensive
actions

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These decision considerations facilitate Post-merger Integration across all industries and organizations of various sizes. Let’s discuss the first
3 decision levers in detail now.
Lever 1 – Form of synergy to be created
The foremost element of a PMI is deciding on the type of synergy to be achieved through integration. The question is to either focus on
achieving cost reduction or growth synergies.
If cost cutting is the objective of an M&A then the leadership of the combined organization needs to outline potential costing saving
opportunities across the board. This should be followed by robust communication strategy to convey the implications of the M&A program.
However, if the management’s objective is to unlock growth synergies from the acquisition, then the integration is to be treated as a strategic
endeavor—e.g., understanding the customer needs, evaluating market potential, generating innovative business ideas, and developing
execution plans.
Lever 2 – Required pace of integration
The 2 lever demands from the senior leadership to determine the pace most appropriate for the integration of their newly combined
enterprise—i.e., to choose between a fast track and a steadier integration approach.
A majority of executives believe that PMI should be executed as quickly as possible, so that upon completion of the initiative they could divert
their center of attention back to business operations. This approach, however, involves decisions that aren’t backed by detailed analysis of
facts and data, and is likely to face increased risks and uncertainties.
On the other hand, a slower pace of integration is beneficial in case of a friendly takeover or expansion in a new domain. A steadier pace of
integration works well to reduce any apprehensions, cynicism, bottlenecks, and risks due to oversight.
Lever 3 – Degree of Integration
PMI necessitates gauging the appropriate degree of integration beneficial for the organization—i.e., choosing between extensive across the
board versus partial integration.
An absolute focus on cost synergies warrants an extensive degree of integration across all departments and geographies. This puts extra
pressure on teams in terms of work and risks dwindling enterprise focus on the customer. Committing more resources and setting the
priorities right aids in offsetting the risks associated with an extensive degree of integration.
nd

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A partial integration, on the other hand, is simpler, less controversial, and predominantly warrants consolidation of sales or alignment of
mission-critical processes. This typically works well in takeovers requiring new products acquisition or addition of new customer segments.
Interested in learning more about the other 5 decision levers of PMI? You can download an editable PowerPoint on Post-merger
Integration (PMI): 8 Levers here on the Flevy documents marketplace.
Are you a Management Consultant?
You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.
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About Mark Bridges
Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering
management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune
100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice
methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of
Business at the University of Chicago. You can connect with Mark on LinkedIn here.
View all posts by Mark Bridges →

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