An acquisition that is strategic can be a viable way to increase market share, enhance capabilities, or even outdo competitors by increasing cost-efficiency. However, many acquirers fall short on integrating their new entities with their existing business, which can have long-term negative effects. This article provides crucial elements of success for merger acquisition integration (PMI) which can help ensure a successful and efficient integration.

PMI should begin with a concise, clear definition that converts “why” a deal in to quantifiable goals and specific plans for each functional area. This includes revenue and cost related synergies. PMI should also consider the cultural fit of the target and acquiring companies and the particularities that may be inherent in each deal’s unique circumstances (e.g., the industry vertical of the target company or stage of business cycle).

A key aspect to be focused on during PMI is ensuring that the CEOs of both companies devote the majority of their time to their core business and prioritize engagement with stakeholders/customers. Hess suggests that to achieve this, employees must identify the problem solvers and thought leaders in the team of the company they are targeting and assign them to an taskforce to integrate. These senior leaders can reduce stress and boost morale/buy in by showing the new company that they care about their leadership.

While playbooks are not ideal for the fluctuating/irregular world of M&A, a basic framework and game plan can be helpful. To download page a free copy of an integration checklist, visit our resources page for free.