Post Merger Integration (PMI)

Deriving value from Mergers and Acquisitions is one of the hardest challenges that management teams face. Every survey has a different statistic but the theme is the same – delivering shareholder return from M&A is difficult with the number of failures being significantly over 60%, of which 50% fail in their post merger integration execution. Many reasons for failure exist but ultimately management has to deal with and integrate multiple cultures, teams, policies, processes and systems in a short time period and it only has one chance to get it right. Having to integrate whilst not disrupting the core business is a huge undertaking.

How we can help:
We assist clients from the pre-deal phase to identify and quantify the synergies, to the requirement to create, monitor and execute the post deal integration plan and to outline and mitigate the integration risks. As part of our portfolio, we offer support on:

  • Management integration decisions
  • Functional integration assistance
  • Carve out and separation planning
  • Synergy review
  • Closing day and first 100 days after closing planning
  • Initiatives prioritization and coordination
  • Project management and benefit realization tracking

Our services embed a proven methodology and an expansive set of process tools, templates, and guides to support the overall integration. Our core PwC Israel team has  assisted more than 50 clients to integrate their businesses successfully, with over 10 integrations in Israel alone in the past 18 months.

Our successes:

A large industrial TASE 25 client acquired one of its main customers, as part of a strategic plan to expand operations while leveraging synergies to enhance profitability and growth. We supported the business to achieve synergies of more than $100m with no decline in performance during the transition; transform the organization from centralized organization to management by sectors and apply standardized best of breed operating model to enable additional future savings and performance improvements.

A leading high tech client acquired one of its competitors with a profoundly different working culture, in a merger that involved a high level of investment and expectations for quick returns. We provided full integration support and helped the business to achieve full integration, including ERP,  within one quarter. The cost synergies achieved were over 150% of original expectations. The integration was completed with no loss of customers and high retention percentage of key employees.