Post Merger Integration Templates

A smooth and successful post merger integration depends on identifying, prioritizing and measuring synergies long before the deal is completed. Companies that succeed in maximizing the expected value from a M&A deal, frequently plan early for integration and how they will achieve the synergies…usually at the due diligence stage. This early-start allows them to be ready for not only short-term issues, such as keeping the business running, but also for long-term issues, such as how to transform the combined entity.

Post Merger Integration Process
Having the right team in place from the start ensures the execution plan and strategic objectives will be upheld throughout the transaction. Depending on the complexity of the merger and the size of the companies, the team may be composed of the following groups:

Steering committee – This group is typically composed of C-level executives from both organizations, as well as the directors of the human resources and communications departments. The steering committee sets the direction of the deal and manages all final approvals on spending, staffing and the more nuanced aspects of the transition. The steering committee is in charge of creating the high-level merger integration strategy, establishing timelines, and defining synergy targets.

Integration management office – This team’s role is to convert the steering committee’s strategy into detailed roadmaps. They are also in charge of ensuring these action plans are followed by all in the combining organization. This team serves as the final authority on all decisions and is devoted almost full time to the merger.

Operational team – Ideally this group is composed of operational leaders from both companies. Their job is to coordinate all of the deal’s cross-functional integration activities. They manage the moving parts and help ensure the deal meets its targeted goals. They also drive the synergy capture process.

External advisors – For many organizations, their first merger is their only merger. Bringing in experienced external advisors who have managed previous deals can provide trusted guidance and support throughout the process. These external teams also help your employees stay focused on running the current business. It’s also important to have third party legal teams involved in the transaction.

Functional Areas Post Merger Integration Plan
There’s a lot of work to do in a post merger integration of the different functional areas. Integrating the work processes, technologies, systems, teams, leadership and, eventually, culture is a complex job that is filled with risks. Doing the job successfully requires intense focus, minimal distraction, and continuity for customers and partners. Lack of clarity leads to diluted focus and lower morale. Because of this, many, if not most, mergers fail as departmental functions fail to achieve the desired level of integration for synergies to be realized. A list of some of the key functions that must be given high post merger integration priority are:

  • Sales
  • Marketing
  • Billing & Collections
  • Finance
  • Engineering & Product Development
  • Information Technology
  • Operations
  • Customer Support

Human Resources (HR) Post Merger Integration Plan
HR merger integration addresses the key issues that must be managed with regard to the difficult people issues that will result from merging the two companies.

  • Creation of new policies to guide the new organization.
  • Retention of key employees.
  • Employee selection and downsizing.
  • Development of compensation strategies.
  • Creation of a comprehensive employee benefits program.

Merging two companies usually comes packed with mixed feelings, including excitement, fear, uncertainty, enthusiasm and resistance. These emotional reactions can occur at every level of the organization. How an organization deals with its employees before, during and after the transaction can have a determinative impact on the success of the transaction.

Post Merger Communications Plan
Even before a formal merger or acquisition is underway, employees often become aware from indirect information or by chance that something is in the air. It is human nature to want to know what is happening. If they feel management is keeping information from them, quite understandably they start to feel anxious.

When people are uncertain, they start to speculate about the clues in front of them. Invariably this interpretation of clues becomes paranoia as they chat to workmates and quickly develop a view that a management conspiring the worst. The grapevine goes overtime with rumors. Productivity starts to drop as staff waste time in discussing rumors and losing some of their motivation. With well-developed rumors, some staff actually start to leave the company before, as they believe, the bad news hits. Effective strategic communication plays a key role in addressing these issues, but it can be a difficult and complex exercise.

Post Merger Integration Templates
Use our collection of post merger integration templates to exponentially increase your chances of success.


         Merger Integration Templates                            


Deal Documents
To effectively complete the M&A deal, Joint Venture, or Strategic Alliance, please click below to get the various documents required:

Term SheetDue Diligence Company ValuationDefinitive Agreement
Post Merger IntegrationGovernance & BoardApproach Targets