For many companies going through post merger integration, working with an M&A consulting company ahead of time to learn the key words and catch phrases will shed some light on a potentially worrisome situation. Post merger integration is one step in the larger M&A process, though the steps preceding the integration have a direct bearing on the outcome of the integration. That is why it is helpful for you to know post merger integration key terms as they pertain to the merger process as a whole.

To get a better understanding of what happens when a company goes through post merger integration, it is a good idea to get some background information on key terms in the process. Here are some examples:

1. Ask your merger and acquisition advisors about corporate strategy or vision.

2. Talk about the differences between vertical and horizontal mergers with your M&A consulting company.

3. Find out more about synergy, one of the most important terms in the process.

Action Steps
The best contacts and resources to help you get it done

Work with an M&A consultant to learn the importance of the term corporate strategy

Being well versed in the key terms used to describe the merger process will help you better understand the intended direction for the post merger integration of your company. For example, one of the first steps in a merger is to figure out the corporate strategy. Corporate strategy, which is sometimes referred to as 'vision,' is examining the current state of the two companies who are merging and then envisioning where the new, combined company will be taken in the future.

I recommend: Check out Distance Consulting for an abundance of information on corporate strategy, including explanations and diagrams pertaining to the three different types of corporate strategy. Do you want to know just about everything there is to know about corporate strategy? Spend some time clicking through 12manage and you are sure to find this post merger integration key term and more.

Learn post merger integration key terms pertaining to types of mergers

When in the planning stages, merger and acquisition consultants will help your company decide which kind of merger it will be, as this decision will affect the post merger integration plan. For example, a horizontal merger is the combining of two companies of a similar type, such as two restaurant chains. The post merger integration of these two corporations will be more difficult than combining a restaurant and their produce wholesaler, for example. This is an example of a vertical merger.

I recommend: In addition to having many clear explanations of other key terms having to do with post merger integration, Investopedia clearly defines the differences between horizontal and vertical mergers and mentions integration issues that may arise with both. M&A consultants the Karvy Group have this helpful glossary of M&A key terms on their website.

Use an acquisition consultant to get a handle on the idea of synergy being the end result

One of the most important post merger integration key terms to keep in mind when you are going through the process is synergy. Synergy is the state of a company when the parts of company one and the parts of company two work together in harmony to make an even more successful company. Most post merger integration consultants will tell you that synergy is the intended result for all post merger integration plans.

I recommend: Bloomberg.com not only gives a helpful definition of the word, but also links to definitions related to the idea of Synergy. Browse the questions and answers on AllExperts.com and become acquainted with the key terms associated with synergy and integration as a whole.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many dictionary publishers also publish dictionaries of financial terms. These reference books are a great way to get a quick answer when you run across a post merger integration key term you don't recognize.

Post merger integration is the primary reason mergers fail. You need to consider a variety of factors prior to the actual merger to minimize the risks of merger failure. You must integrate computer systems and corporate cultures need to mesh successfully, to form one cohesive group of employees.

Successful joining of the firms requires a post merger integration plan. While acquisitions are part of the culture at some firms, most firms need assistance in the development and execution of this. Merger and acquisition consultants can help with all levels of the deal, including the integration portion. To ensure the merger will be successful, follow these steps for post-merger integration: To ensure the merger will be successful, follow these steps for post-merger integration:

1. Find and hire an M&A consultant.

2. Perform due diligence.

3. Implement the post merger integration plan.

Action Steps
The best contacts and resources to help you get it done

Hire M&A consultants to assist in the merger process

There are numerous firms in the M&A consulting field, and they tend to specialize by client size and industry. For very large firms, a likely M&A consultant is one of the big investment banks like Merrill Lynch or Goldman Sachs. Middle market firms typically seek smaller M&A consultants.

I recommend: You can find merger and acquisition consultants in most large cities. In this field, personal experience and a solid track record is crucial. You can conduct a Google search for “M&A consultants” to find potential firms in your area. One potential consultant is PriceWaterhouseCoopers, which offers merger and acquisition consulting services.

Execute the merger correctly by valuing the target and ensuring a good fit

The most important part of the merger is identifying an appropriate counterpart, or target, for the merger. The M&A consultant is important in identifying potential targets. Another key element is known as due diligence, or analyzing the target's financial situation.

I recommend: Deloitte & Touche offers many tips on analyzing the target firm. This goes beyond simple analysis as to the financial health of the target. It is also important that the target is a good fit for the acquiring firm, so that there will be positive synergy as a result of the merger.

Follow through with the post merger integration plan

Once you identify the target firm, it's crucial to develop a vision as to what the new firm will be. This requires several meetings between the two management teams. The acquisition consultant team can be helpful in this area as well.

I recommend: Strategy + Business offers a model of a post integration plan, including developing a vision for the new firm. Use their model as a stepping stone to develop your own integration plan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Together with your Merger and Acquisition advisors, conduct meetings with the employees of both firms prior to the merger transaction, and begin aligning the two firms' corporate cultures early on. This will ease the transition period that occurs after the deal is completed.

Post merger integration is one of the most important steps in the merger, or joining, of two companies. In this stage of the game, the two companies combine in an attempt to make one cohesive entity. This is rarely an easy undertaking because, like the employees, all companies have their own level of health and personality and Merger and Acquisition, or M&A consultants recognize this. There are a couple of very important areas needing addressing during the post merger integration plan: operating procedures, corporate culture and workforce adaptations. An M&A consulting company will guide you through the necessary steps that will lead to the success of your merger.

Successful integrations involve the integration of a few key steps. Read up on these post merger integration basics to get a better understanding of post merger integration and the ways consultants can help:

1. Use an M&A consulting company to give advice on standardizing important aspects of the business.

2. Consult merger and acquisition advisors for assistance with combining corporate cultures.

3. Think about contacting a professional for guidance when making the necessary workforce adaptations during your post merger integration.

Action Steps
The best contacts and resources to help you get it done

Realize the importance standardizing procedures and infrastructures in a post merger integration

One of the first pieces of advice you will receive from M&A consultants is to standardize all of the new company's 'foundations' as soon as possible. This means to take care of integral processes such as to integrate accounting systems and IT systems, as well as develop a standard corporate communications procedure when dealing with communications both within and outside the company.

I recommend: This article on Bank Director outlines the importance of integrating the merging company’s entire infrastructure, including the Information Technology infrastructure. Astute Diligence gives a handy list of items to check when you want to hire a firm for merger and acquisition consulting.

Get a jump on your post merger integration plan and set the groundwork for the new company's culture

It is important to realize that every company is different when it comes to personality and corporate culture. Introducing all employees to these new expectations and completing the post merger management integration now to assist with that will save a lot of headaches down the road.

I recommend: Check out this article on bNet Business Network. It gives great insight into how to complete a successful merger and specifically touches on how to integrate the corporate culture such as management styles, measurements of success, as well as giving a checklist of what to cover during an employee orientation. Cityzone has this informative article that includes helpful information on practical ways to handle differing personalities and company cultures.

Utilize merger and acquisition consultants to help you carry out the necessary workforce adaptations

Post merger integration consultants will tell you that one of the more unpleasant tasks of post merger integration is dealing with all of the workforce changes needed. It is not practical from an operating or a financial standpoint to have two of every department. That is why combining departments, consolidating and transferring responsibilities and laying off workers is a necessary evil.

I recommend: This article by Sam Boyer of Sam Boyer & Associates lays out the importance of getting a handle on the new organizational charts, payroll practices and employee compensation under the new company, as well as the importance of eliminating redundancy to save money. Read this article on Forbes.com that gives helpful advice on how to “re-recruit” valuable employees and “weed-out” those whose job responsibilities are no longer needed or those who have been combined with another positions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  There are many books on post merger integration as well as many case studies done. Read more about companies that are similar and what they did to make their integration successful and what roadblocks they ran into along the way. This will give you a better idea of what to expect.

Creating a post merger integration plan can be challenging. Merger and acquisition consultants understand that post merger integration is more than just merging IT and HR functions. Ask any mergers and acquisition (M&A) consultant and they will tell you that post merger, one of the biggest challenges facing management integration is the merging of cultures.

M&A consulting services are a great resource to help lead any stage of a merger, particularly the post merger stage. Consider the following ways to further your post merger integration education and training so that your company's experience is a positive one.

1. Tap into the resources of M&A consultants that have expertise regarding all aspects of mergers and acquisitions.

2. Read articles written and posted on Internet sites discussing post merger management integration.

3. Check out M&A websites that serve as a warehouse of information and are wonderful resources to enhance your education.

Action Steps
The best contacts and resources to help you get it done

Hire M&A consultants to lead your education and training efforts

Post merger integration consultants are experts on almost all topics related to mergers and acquisitions. Take advantage of this expertise by arranging online or in-house training created and taught by these consulting firms.

I recommend: 1-Focus offers a post merger training course entitled "From Multiple Visions to Collaborative Identity." Pritchett offers several training manuals to help your company go through all aspects of a merger, including post-merger integration.

Read articles to guide your post merger integration education

Topical arguments that discuss all aspects and stages of a merger abound on the Internet. These articles are often written by experts in the field, or those that have been there and done that.

I recommend: Global HR News features an article entitled "Post-Merger? Take Pulse!" which discusses various aspects of post-merger integration. The Technology Association of Georgia's library includes an online article entitled "M & A: A Post Merger Integration Plan for Technology Driven Companies."

Browse through websites dedicated to M&A that discuss post merger integration

There are many websites that serve as portals to house literature about M&A. Take advantage of these sites and read any strategy guides, white papers and case studies that can help to enhance your post merger integration education.

I recommend: Recklies Management Project's website includes a director of post-merger integration literature, which contains strategy guides and case studies. Toolbox's website is a receptacle for white papers, discussion topics, and articles regarding all aspects of the merger and acquisition process.