Post-Merger Integration (PMI)

Overview

Preparation is key to creating (and not destroying) value in an integration. FABSO's global post-merger integration (PMI) specialists work with our sector teams to ensure you receive a seamless service across the deal life-cycle, from large-scale, global deals to mid-market and smaller transactions, resulting in a smooth deal close and the development of a combined entity that is worth more than the sum of its parts.

Our PMI practice has deep experience in ensuring successful acquisition integration. This includes assessing revenue and cost synergy potential, "Clean Team" support, negotiation support, pre-close planning and analysis, post-close integration support, carve-out strategy and approach planning, and the creation of transition service agreements, drawing on our deep experience in Organizational Strategy and Value Activation. We advise our clients across a broad range of activities to ensure the best available insight heading into a deal is combined with the appropriate planning for executing the transaction to drive success and value creation.

Creating a combination greater than the sum of its parts

Winning acquirers put the right M&A strategy in place, get the acquisition price right and use a structured post-merger integration approach to capture revenue, cost and capital synergies. However, on average, mergers and acquisitions tend to destroy shareholder value. This can be driven by a multitude of causes, including:

• Not defining a clear M&A strategy — clarity as to whether the deal is intended to drive growth, harness capabilities or optimize on cost and scale
• Embarking on a deal without preparing your organization ahead of time
• Overpaying — arriving at a price for the target that is not grounded in the market or operational realities of the business
• Underestimating the complexity and timing associated with achieving synergies
• Instituting a disciplined, structured post-merger integration approach focused on deal value drivers
• Capturing the learnings and developing a competency in M&A

FABSO's global PMI specialists work with our sector teams to ensure you receive a seamless service across the deal life-cycle. Our structured approach to M&A integration is aligned with the key success factors. We will tailor to the strategic intent of the deal, scale of the integration and sector-specific opportunities and challenges that may arise.

FABSO PMI framework

Our suite of proven tools, as well as our deep sector expertise and proven Organizational Design and Value Activation methods allow us to enable the acceleration of an integration project:

• Synergy realization: We combine deep industry-relevant expertise in synergy assessment, with world-renowned analytical capabilities and robust tracking tools.
• Functional planning and execution: To get our clients up and running quickly, we bring industry-specific functional integration playbooks.
• Organizational structure and talent retention: Tapping into our Organizational Strategy practice, we can bring the latest tools and techniques to help clients develop an effective, combined organization, while holding on to its critical resources.
• Program management: Leveraging a cutting-edge, cloud-based toolset and robust Value Activation approach, we ensure our clients deploy a disciplined and structured approach to integration.
• Change management & communications: Using our well-established communication program, we can ensure internal and external stakeholder concerns are addressed.

Our global post-merger integration team advises on a wide variety of transactions, from large-scale, global integrations to mid-market, carve-out and PE-backed deals, across all our sector verticals.

• Large cap deals: Our experts understand the complexities of integrating companies across regions and countries and are able to deploy global, coordinated teams to support our clients’ needs.
• Mid-market deals: We bring added structure, focus and speed. We deploy deep strategic, commercial, organizational and operational expertise to help integration teams identify and evaluate synergy opportunities and develop the integration plans to realize transaction value.
• PE-backed deals: Whether it’s a 100 Day plan for a single acquisition, integration of “buy and build” assets or a carve-out, we can deploy a fit-for-purpose approach that focuses on rapid value creation and long-term capability development.