How Post-Merger Integration Timing Impacts Your Plan

A well-designed post-merger integration plan is essential for a successful closing. An organization must plan for a post-merger integration during the pre-closing period because the time available before Day 1 dictates the work that can be completed. Consequently, the organization must triage tasks based on importance and time available.

The most critical tasks for an aggressive, accelerated, and relaxed integration timeline

Aggressive timeline

• Immediate focus on critical activities required to close the transaction (e.g., legal and finance)
• Communicate with key internal and external stakeholders, including staff of both companies
• Setup the Integration Management Office (IMO) and integration workstreams
• Address the most urgent people-related themes
• Plan for few changes on Day 1
• Create a Day 1 run of play

Accelerated timeline

• All activities from the aggressive timeline
• A more thorough assessment of personnel and key employees
• High-level understanding of the operating model of the acquired company
• Potentially, a design of Day 1 organization structure
• Begin to understand the status quo in the acquired company
• Plan for minimal changes on Day 1

Relaxed timeline

• All activities from the aggressive and accelerated timelines
• More thorough understanding of the operating model of the acquired company
• Design elements of the target operating model for the integrated company
• Plan for several changes on Day 1

If timing is tight and only a few weeks are available before the close, pre-closing activities must focus on the crucial legal, financing, communication and people-related topics. If there are four to six weeks to the close, a more thorough integration planning process can occur for all the workstreams, not just the most crucial Day 1 workstreams. With even more time available, organizations can also design a target operating model for the combined organization.

By: Alexey Saltykov, Practice Leader, Post-Merger Integration and Digital Transformation and Chris Penhalluriack, Senior Associate, Strategy & Operations