Merger integration, post-merger integration, or PMI refers to the aspect of an organizational merger that involves combining the original socio-technical systems of the merging organizations into one such newly combined system.
The process of combining two or more organizations into a single organization involves several organizational systems, such as 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. Despite the challenges best practices have emerged how to execute merger integration planning during due diligence.
Integration fits within an organizational life-cycle or specific business mergers & acquisitions cycle where businesses buy, integrate then dispose of other businesses:
- Definition of vision & strategy
- Selection of growth method: organic vs inorganic
- Target identification
- Pre-deal evaluation & due diligence
- Negotiation & deal completion
- Post-merger integration
- Acquisition Integration
- Ongoing improvement
- Mergers & acquisitions
- Business acquisition
- Program management
- Project management
- Change management
- Corporate finance
- Management due diligence
- Anthony F., Buono; Bowditch, James L. (1989). The human side of mergers and acquisitions: Managing collisions between people, cultures, and organizations. San Francisco: Jossey-Bass Publishers. ISBN 1-55542-135-0.
- M&A Transaction Survey of 50 executive M&A respondents (2013); ModalMinds Inc.; http://modalminds.com/modality/ma-transaction-survey-results/
- Popp, Karl Michael (2013). Mergers and Acquisitions in the Software Industry - foundations of due diligence. Norderstedt: Books on demand. ISBN 978-3-7322-4381-5.
- Update-able list of Merger Integration Providers. http://www.merger-integration.org/
- PRITCHETT provides free post merger integration articles, tools, research, best practices, excerpts from merger integration books, and a blog. http://www.MergerIntegration.com/
- BNET provides a short video featuring the Top 5 Mistakes to Avoid, presented by Steven Ramirez, M&A Integration Consultant at Beyond the Arc. http://www.bnet.com/2422-13722_23-186403.html
- Gilles Ourvoie, Managing Partner at PMI Factory, provides a number of articles and some tools related to Post Merger Integration. http://www.pmifactory.com
- Post Merger Integration Blog provides daily news, research and points of views about Post Merger Integration. http://www.postmergerintegration.eu
- Post Merger Integration resource and information. http://www.pwc.co.uk/eng/services/post_merger_integration.html
- Danny A.Davis provides free post merger integration articles and has written a concise book on the topic. http://www.ddavisconsulting.com/
- Deven Software provides a cloud-based Post-Merger Integration (PMI) software product called EMA that helps the integration teams plan and manage the entire PMI process. PMI best practices are also available. http://www.devensoft.com
- Merger integration best practices http://www.mergerintegration.eu