WEmile Wolff B.V.

Post Acquisition Integration

When the deal is done, the hard work commences to make an acquisition (or merger) into a success. Often, preparing for such a major project has to await the closure of the deal, unfortunately. Only when the mist of the bubbles has cleared, reality sinks in that a major task lies ahead.

A rule of thumb is that the integration plan must be drawn up in three months. The only way to achieve this in such a big project is by parallelising all the work streams.

The due diligence report forms a good basis for a Post Acquisition Integration Project (PAI-Project), forming the foundation of the benefits promises made to shareholders. Of course, these envisaged returns must be achieved.

The complication of a PAI-project lies in the overlaps, such as two IT systems, two HR systems, two product slates, different marketing/sales approaches in (partially) overlapping markets, etc.

The most successful road to success is formed by quickly mapping the gaps and overlaps, followed by benefits-based decisions on the way forward. Normally, each case presents 4 options:

1. Keep the systems of Company A and Company B separate, perhaps with a high level link; or-for product slates, keep the two.
2. Convert Company A to the system of Company B
3. Convert Company B to the system of Company A
4. Implement a new system for both Company A and Company B.

When the decisions have been made in all the work streams and costs/benefits calculated, this is followed by a check vs the business case. Will the required benefits be achieved? Or do we need to find extra benefits?

With the scope defined, the implementation plans can be made and subsequently implemented. When executed with excellent project/program management and consistent benefits tracking, then success is normally assured.