Post Merger Integration Model

The post merger integration model is the process by which both the acquired company and the acquirer create the framework in which they operate. This will include a plan to make decisions including a leadership and governance structure and reporting matrix, an operating model and a plan for outside and internal communications. It is crucial that all departments be part of the planning phase which includes finance, operations IT, clinical departments, quality, supply chain human resources, supply chain, and personnel.

In the end, the performance of PMI will determine the value of the transaction for both parties. Any benefits that are planned, regardless of whether they’re from cross-selling, platform consolidation, geographical or industry expansion, or cost improvement is difficult to achieve without proper planning and execution.

It is vital that the structure of the organization be well-defined and communicated prior to the start of the PMI in order to establish the tone for the entire project. This can be done by defining roles, responsibilities, and expectations at the beginning and will reduce the likelihood of conflict and opposition.

This will require a lot of work italian post-merger integration model because the two merging businesses may have different policies as well as procedures and business procedures. For instance, if one company records transactions in books while the other employs an ERP system, it will take considerable effort to make their systems compatible.

This is where major process changes and integration is made to realize the target process, which was earlier planned and created. During this stage the company that is acquired will implement the combined strategies and utilize best practices from both companies to realize synergies.

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