Post-merger integration
Factual definition
Combining selected operations, systems and people after an acquisition or merger. Planning can begin before closing, and the appropriate degree of integration depends on the deal; not all post-closing value creation is integration.
Post-merger integration in practice
Hypothetical: a buyer plans to combine two back offices within 100 days after closing. The systems migration instead takes six months, delaying the savings that depend on it. The example is a project delay, not a universal integration deadline.
- Selected systems
- People and responsibilities
- Customer continuity
- Sequenced execution
Shayne Fitz-Coy’s definition of Post-merger integration
Post-merger integration is where a plan written before the purchase meets the company you actually bought. It assumes you are integrating, which is a decision rather than a default.
In the usual version one portfolio company acquires or merges with another, and the work is putting them together.
How Shayne Fitz-Coy uses Post-merger integration
You write the plan before you buy. Financial, operational and legal diligence all happen pre-purchase, and the plan says what you intend to do with the business.
After closing there is a period of feeling each other out and pleasantries. Then at some point the two businesses actually have to go together.
Terms Related to Post-merger integration
Value creation plan · Synergies · Transition services agreement · 100-day plan · Merger structures · Preferred bidder · All of the glossary