post+merger+gross+cie

Post-merger integration determines the value of a transaction.
Hard facts are “core to play.” Soft factors are “key to win.”

When it comes to mergers and acquisitions, the well-known adage holds truer than ever: “Culture eats strategy for breakfast.” This is because different cultures suddenly collide. Executives and employees are expected to achieve more together. 1 + 1 should equal 3. That is often the goal. Without intensive post-merger integration, the equation can quickly become 1+1 = 1. The planned added value is often not achieved because change management is neglected. After the exciting wedding, too little attention is often paid to how the partners will live together.


Post-merger integration begins even before the formal completion of a transaction, known as “closing.” This is because, at the latest by the time of “signing”—that is, the agreement to proceed with the transaction—all stakeholders involved, and especially the affected executives and employees, begin to grapple intensively with the potential implications. In most cases, it is not yet clear in detail how the integration will bring about change. Therefore, in this initial phase, it is important to create transparency regarding the next steps and opportunities to participate in the detailed planning. Those who are involved are more willing to implement even painful changes.


Management of various post-merger integrations: analysis and strategy, planning and implementation of measures

coty

Consumer goods

Integration of new brands: Consulting for HR management, executive training, lessons learned sessions, analysis and evaluation of results

danone

Nutrition

Merger of two companies: internal change campaign, including project management, facilitation of an executive conference, and employee workshops

enovos

Energy Industry

Integration of regional municipal utilities: Cultural due diligence (pre-merger), internal change campaign, including project management and advisory services to senior management

fiducia

IT, Banking

Merger of the two IT service providers within the VR Group, extensive staff reductions: project and interim management, including oversight of change management across all areas of operation

pwc

Consulting & Tax

Integration of multiple companies or teams across locations: Cultural due diligence (pre-merger), project management, and internal change campaigns; advising the partners involved

sweco

Engineering, Construction Industry

Integration of two architectural firms: Cultural due diligence (post-merger), executive workshops, lessons learned sessions, management consulting


Every post-merger integration (PMI) is unique, with its own objectives and starting conditions for management. Drawing on its extensive experience with PMI projects, Groß & Cie. structures the process and employs the appropriate tools, such as checklists to identify relevant areas of action. The first step in consulting is assessing the initial situation. Groß & Cie. serves clients not only in Frankfurt am Main and the Rhine-Main region, but throughout Germany, Austria, and Switzerland.

These articles provide an in-depth look at the post-merger integration process: “Culture as a Success Factor in M&A Transactions” in Rethinking Finance and “Post-Merger Integration Determines Success in M&A Transactions” in the Journal for Corporate Lawyers.

We would be happy to discuss the specific challenges of your post-merger integration. You can reach Managing Partner Dr. Michael Groß by phone at 0171 2428 624. Or send him an email.

Every future has a past. Groß & Cie. uses a proven tool to identify the common ground, potential for conflict, and areas for action in post-merger integration. “Cultural Due Diligence” (CDD) reveals how organizations function in practice, what beliefs shape employees, and how stakeholders can best be “on boarded” for post-merger integration. CDD should be implemented before the actual integration, ideally during the traditional due diligence process. This ensures that post-merger integration is set up optimally from the very beginning.

Ideally, the post-merger integration plan should be in place before the formal “closing.” The plan must include the strategy, the areas of action with sub-goals (e.g., to increase revenue, reduce costs, retain employees, etc.), the most important measures within those areas, and, above all, the key messages for the integration process. The “deal story” of the transaction is an important foundation for the post-merger integration. It is important to build a narrative structure into the plan. To start, it is helpful to use the sequence 10 – 100 – 1000.

The management of a post-merger integration ultimately determines whether the plans will actually lead to success and whether the transaction’s objectives will be achieved. There are many foreseeable pitfalls in this process, such as the influence of employee participation, or resistance from managers or employees. Groß & Cie.’s consulting services ensure that the unplanned and unplannable are flexibly integrated into the process. Many PMI projects that Groß & Cie. has managed have shown that, for example, unexpected reactions from customers or competitors can create unforeseen dynamics.