Post Merger Integration Survey 2009: European results
Post Merger Integration Survey 2009: European Results
provides an insightful look at critical success factors of transactions and do's and don'ts in the approaches to integration activities. This study is a compilation of post merger integration surveys conducted in the first part of 2009 by PwC in eight European countries with more than 250 top executives, who were part of post merger integration projects during the past three years. These executives belonged either to the acquirer or to the target company.
The findings of the study reflect the economic environment during the past three years. Most of the acquisitions were primarily intended to create top line growth, by capturing new regions, new customers or new products. We believe that in the current economic downturn, post merger projects will tend to focus more on the following issues:
- “Value enhancement” instead of increased company growth
- Robust and well controlled transition from the due diligence phase to the integration, ensuring that all relevant due diligence findings are captured and addressed
- Rapid transformation with regard to change management issues and efficient communication
Acquisitions often have a significant impact on the business, but the distinctive phases of a transaction (initiation, due diligence and integration) are often assigned to separate areas of responsibility and therefore contain the risk of information loss at interfaces. Management should therefore be closely involved in all phases of the acquisition, pre deal, during the execution and post deal. After all, sustainable value creation is not achieved by closing the transaction, but by conducting successful joint businesses afterwards.