Post Merger Integration Basics

Learn the basic ideas behind post merger integration and set yourself up for success
By M. Krasniak, Freelance Writer/Editor 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.

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.
Try:  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.
Try:  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.
Try:  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.

• 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.