Merger integration

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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.

Overview[edit]

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.[1] 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.[2] Despite the challenges best practices have emerged how to execute merger integration planning during due diligence.[3]

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
  • Disposal

See also[edit]

Sources[edit]

  1. ^ 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. 
  2. ^ M&A Transaction Survey of 50 executive M&A respondents (2013); ModalMinds Inc.; http://modalminds.com/modality/ma-transaction-survey-results/
  3. ^ 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. 

External links[edit]