
Post-merger integration

PMI
One of the ways to grow a business is to either merge or acquire another business. Other reasons for M&A could be to acquire a specialist skills, get hold of patents or Intellectual property, obtain access to a new client base or suppliers, as well as consolidation to reduce cost and compete fiercely in the market.
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The first step is to search for the Target company, which is potential firms that would benefit your business. Once the target is found, Due diligence would be conducted; identifying synergies, anticipated benefit, assessment for cultural fit, as well as the company valuation (price to be paid to the existing shareholders). The real work starts once the target firm is acquired or the merger work commences. According to various reports up to 90% of M&A fail, the management struggles to realise the synergies, benefits and in the worst case scenario loses value. Therefore, it is vital to start preparing Post-merger integration plans before the deal is closed. This is where we come into the picture, our PMI consultants can prepare and deliver the e2e integration plan. We strike a balance to make the most the best use of Internal resources, guiding them to help with integration whilst ensuring their day-to-day operations remain unaffected.
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100 days
The first 100 days after signing the deal are utmost important for both organisations, this is when most of the value is lost in the failed deals. Capturing low hanging fruit (Easy wins), setting pace and expectations occurs in this period and if done correctly, it ensures that the remainder of the integration runs smoothly. A detailed plan helps instil confidence in the employees and it is equally importantly to neutralise challenging situations diplomatically.

