Post-merger integration in an international trading group
STARTING SITUATION – THE FIRST 90 DAYS AFTER THE TAKEOVER
Our client, an international trading group, had successfully completed negotiations to acquire a competitor. However, the post-merger integration had yet to be implemented. During the critical 90 days following the takeover, our client had to decide whether to integrate the target company’s branch network into the group, or to discretely downsize it. In order to make this decision, they first needed us to carry out a comprehensive evaluation of the locations. In addition, the best practice processes of the competitor being taken over were to be identified.
PROJECT APPROACH – FOCUSED INTEGRATION MANAGEMENT AS A FACTOR FOR SUCCESS
As part of a focused integration program, all of the locations belonging to both the target company and the buyer were evaluated based on various parameters, and a recommendation was made regarding the branch network of the integrated group. Additionally, the target company’s most efficient and most strategically important processes were identified, and, after checking the costs involved, these were implemented within the parent corporation in order to realize even greater potential for success. Communicating openly with the employees, as well as unconventional measures such as job fairs and platforms, helped the workforce, who were generally skeptical, to adjust to the integration and the new corporate structure, thereby guaranteeing a smooth transition.
FINDING – AN ACQUISITION IS ONLY AS SUCCESSFUL AS THE SUBSEQUENT INTEGRATION
In order to achieve the full integration of two companies, a well-structured, systematic integration program is required. As well as the speed of the process itself, effective internal communication on the integration is also a crucial factor for success.
- Target branch network integrated and best-practice processes established
- A thorough analysis of the locations formed the basis for making a decision on the integrated group’s branch network
- Best-practice processes identified and implemented in the integrated group