Facilitating post-merger integration.

 – The often forgotten post-merger integration process

Why is it that 2/3 of all mergers and acquisitions fail to meet their original objectives due to cultural clashes? Our research shows that it is because the cultural friction is ignored or underestimated and because the management doesn’t have the necessary skills and/or time to do a proper integration. If your company shouldn’t end up between the 2/3 of the companies that fail we suggest you contact us as early as possible so we proactively can plan the post-merger integration process instead of agreeing on a damage control assignment.

The post-merger integration process usually goes wrong because:

  • Management loose focus as soon as the deal is signed
  • Management doesn’t know how to tackle the post-merger integration process properly
  • Management has to deal with both the current business and the post-merger integration process
  • The cultural friction and resistance is often hidden

When you engage Gugin to facilitate the post-merger integration process we can assure you that:

  • You can spend more time and resources on what you are good at – managing the company
  • We locate the potential cultural friction points early in the process so we can develop a plan to deal with them
  • We plan the post-merger integration process together with you and align it with the strategic and operational objectives and targets
  • We keep our eyes and hands on the post-merger integration process ensuring that you reach the desired level of integration on time
  • We help you protect your most valuable resource – your people, their skills and their knowledge. It is always the best people who leave first when things are not as they should be.
  • We facilitate the development of a corporate culture that is supporting the current strategy and at the same time can include the diversity in the merged organisations.

A successful post-merger integration process is like baking a delicious cookie

post-merger-cookieYou can compare a successful post-merger integration process with baking a delicious cookie. You have a number of ingredients which have to with put together in the right quantities and in the right order and it all has to be baked perfectly. This is the only way you will get the perfect delicious cookie that tastes far better than any of the ingredients alone. If you fail you have wasted the ingredients. That is why you have to be a good baker to succeed.
Facilitating post-merger integration is no different. You have to understand the cultural and sociological dynamics and know how to facilitate the post-merger integration process so that the end result is beautiful. If you fail your best employees and managers together with your best clients, who probably don’t see the point in you engaging in a merger or acquisition. Engage Gugin as your baker and let us facilitate the post-merger integration process. It is our core competence.

Gugins initial analysis of your organisation

The analysis will be a combination of questionnaires, group discussions and interviews all planned so that it fits the organisation in the best possible way. After having made the report and presented the recommendations we can discuss how to take the organisation through the transformation.

Deliverable

We deliver a comprehensive report based on our organisational analysis and present the results to you. You can then decide if you want to proceed to work with us, do it on your own or get assistance from someone else.

Advantages of letting Gugin facilitate the post-merger integration Process

Facilitating a post-merger integration process is extremely time-consuming. And it is probably not your core competence to integrate organisations so the chances you will become among the 2/3 who don’t succeed is quite high.

  1. Gugin has the experience and the right resources – anywhere in the world
    The longer the post-merger integration process takes the more likely it is you will never finish, meaning you will NOT meet the objectives of the merger or acquisition. We have the resources and the skills to do it as smooth and effective as possible.
  2. You can focus on your business while we focus on the integration process
    you can’t put your business on hold while integrating two organisations. You need to change the tyre while the car is driving. We can do that! Then you can focus your business so you don’t lose momentum in a very competitive world. otherwise, you will lose both your best employees and your best customers.
  3. In a situation of uncertainty, we are usually more trusted by the employees than the management. So we get the right information – first
    You will never get a truthful answer or situation report from your middle managers. We are too concerned securing their own position in the transition phase and they will not trust you as much as they did before. They will, however, trust us because we are neutral and we always give the guarantee that all information will remain confidential.

 

Read on and learn more about our post-merger integration process

 

 

 

 

 

 

Wikipedia defines Post-merger integration or PMI as a complex process of combining and rearranging businesses to materialize potential efficiencies and synergies that usually motivate mergers and acquisitions. The PMI is a critical aspect of mergers; it involves combining the original socio-technical systems of the merging organizations into one new combined system.The process of combining two or more organizations into a single organization involves several organizational systems, such as assets, people, resources, tasks, and the supporting information technology.The process of combining these systems is known as ‘integration’. Integration Planning is one of the most challenging areas to address pre-close during a merger or acquisition. The integration management office, or IMO, manages core functions of the integration effort and provides structure for integration delivery. In a survey by Global PMI Partners of 143 M&A executives, 67% of respondents incorporate IMO during an acquisition on at least half of their initiatives in a cross-border setting.
  • We align your corporate culture with your strategy.
  • We take you safely through major changes in your organisation.
  • We develop the crucial cultural intelligence in your organisation by training your employees and leaders
  • We help you develop a competitive advantage with a unique corporate culture

Gugin has helped more than 600 companies around the world creating a winning corporate culture.

Contact Gugin

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