TTE Strategy named HIDDEN CHAMPION 2024 /25 in Strategy

Post-Merger Integration: Mastering Transformation in a Targeted Way

Lars Linnekogel
Lars Linnekogel

Post-Merger Integration (PMI): Approaching Transformation in a Structured and Holistic Way

Post-merger integration (PMI) refers to the integration phase that takes place after the legal merger of two or more companies (mergers & acquisitions, M&A).
The main goal of PMI is to harmonize the processes in all affected organizations, to create a uniform structure without redundancies, and to get all employees on board through change management.

In the context of M&A projects, the post-merger integration phase plays a central role – because it is decisive in whether the company merger succeeds or fails. In addition to harmonizing structures, the biggest challenge that organizations are confronted with lies in the merging of different corporate cultures: without thorough project planning taking into account the human factor, loss of trust together with increased frustration and uncertainty are inevitable. This can lead to employee churn and brings about unnecessary costs as well as a lot of wasted time – with the result that the merger or acquisition does not lead to the increases in value or synergies that were hoped for.
In cooperation with an experienced partner such as TTE Strategy, you can approach the important steps of PMI in a structured and holistic way and eliminate problems as soon as they arise.

The post-merger integration process

Typically, the post-merger integration process is divided into three phases: planning, implementation, and transformation.
During the planning phase, objectives are defined and topics relevant to the new company are identified. For the subsequent processing of these topics, an integration team with a multilevel hierarchy and clearly distributed competencies is usually put together. With the help of a project organization plan, the topics are divided into work packages, prioritized, and assigned.
In the implementation phase, the respective teams work through each work package. Efficient implementation can only be guaranteed if appropriate performance reviews and transparent tracking are carried out and sources of friction are identified at an early stage.
The transformation phase, taking place as the last or a parallel step, includes competence transfer from the integration team to regular management, which brings the planned changes into day-to-day business.

Why professional PMI consulting is worthwhile

PMI is change management – and the latter only works if all the people involved are “taken along on the ride.” Post-merger integration should therefore never be limited to the organizational and technical aspects, but intelligently combine different points of view into a new corporate culture that is embodied by all employees.
For most companies, the lengthy process of post-merger integration is unlikely to be everyday routine. With that in mind, in order to achieve the desired economic success, bringing in specialists is recommended: thanks to our many years of expertise, we at TTE Strategy ensure structured and holistic implementation of PMI. Our neutral point of view allows us to approach PMI objectively, meaning past differences between employees do not influence decisions and no one feels disadvantaged. Day-to-day business can continue without complications, as PMI, with the involvement of the organization’s key stakeholders, is centrally managed by external individuals.

How TTE Strategy can support your post-merger integration

As a multi-award-winning strategy and transformation consultancy, we at TTE Strategy are by your side during all phases of post-merger integration.
Our many years of experience in national and international projects have allowed us to develop a unique approach with which you can successfully shape the PMI process and handle the corresponding change requirements: What is the purpose of the new company? What objectives for the merger does that bring about? What approach and what integration management strategy can prove itself useful – and how can an active mindset be fostered in the new company?

Our support is based on the following five core elements:

  1. Development of a post-merger corporate strategy and objectives for the corporate culture
    Clear strategic and cultural objectives serve as guidelines for integration right from the start.
  2. Establishment of an integration management team and definition of an integration plan focused on corporate benefits

A precise integration plan with milestones, responsibilities, and a “100-day plan” ensures that the integration proceeds as desired.

  1. Definition of guiding principles, based on the post-merger strategy defined in point 2
    The organizational structure, including processes and technical support, conveys the purpose and benefits of the new company.
  2. Determination of central integration modules and governance as a regulatory framework
    The development of a comprehensible structure of integration modules ensures that all important aspects of PMI are covered.
  3. Quick driving of integration and ensuring motivation
    Positivity, team spirit, and stakeholder integration keep the process going.

To ensure that PMI leads to long-term success, we also equip you with the necessary tools – our TTE Toolbox. It contains:

TTE Value Monitor
with digital access to our modern synergy, benefit, and activity tracker.

TTE Integration Checklist
for all functions, from Sales to Operations, R&D, and Finance.

TTE Activist IMO
a proven project management office model.

MS Teams Integration
for sharing information from the Integration Management Office.

TTE Fair Loop
for strategy development with future key figures in the new organization.

TTE Culture Match
surveys to understand gaps between departments and achieve alignment with the corporate strategy.

Convinced? Whether it is with program management, functional support, or integration coaching – we support you!
Contact us now and we can take on the transformation together.

More Insights
New white paper: CO-CREATION AS A VALUE DRIVER - this strategy design approach makes transformation in SMEs a success
Dr. Philipp Grimm
Dr. Philipp Grimm
Unruhige Zeiten: The TTE podcast for the "Mittelstand"
Lars Linnekogel
Lars Linnekogel

TTE Strategy