With up to 90% of mergers falling short at the integration stage, Oaklin examines where businesses typically go wrong and what can be done to ensure mergers create value, rather than destroy it.
"The key to maximising value from PMI activity is to understand the rationale for the
Integration in all its aspects can be successfully managed and delivered through a well set-up Integration Management Office (IMO), a highlyspecialised type of programme management capability.
With the value of global mergers and acquisitions surpassing $5 trillion for the first time in 20151 it may be surprising and alarming to note that up to 90% of mergers end up destroying value in the integrated company.
Why do so many mergers fail to deliver the promised value? In our experience, this is usually the direct result of ineffective post-merger integration (PMI). In this article, we examine how integration in all its aspects can be successfully managed and delivered through a well set-up Integration Management Office (IMO), a highly-specialised type of programme management capability. We start by presenting some of the key challenges associated with PMI. We then define the key characteristics of an effective IMO to plan and deliver maximum value within the context of a business merger. Finally, we present five key steps to setting up an effective IMO to facilitate the successful delivery of
a fully integrated and cohesive organisation.
Author: Danny Kelly, Partner