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Mergers only succeed when people merge

Synergies, growth, economies of scale, elimination of duplicate structures, accelerated innovation, competence building. The list of goals for mergers and acquisitions (M&As) is long. Unfortunately, the list of failed M&As is just as long. Eighty percent fail due to a lack of post-merger integration, and 50% due to incompatible cultures (source: Roland Berger).

In plain language: if the workforce resists a merger or acquisition, consciously separates itself from each other, and does not want to identify with the new entity, the expected synergies will not materialize. The project fails, and restructuring / turnaround is often necessary. That is why human dynamics must be considered in M&As from the very beginning. This is particularly important in the due diligence phase (see below), at the latest from Day-One, when it is essential to quickly provide clarity for all those affected.

This requires specialists in communication, social psychology, and other disciplines. It requires professional handling of relevant factors such as culture, social identity, shared values, beliefs, and behavioral norms, Anti-Change-DNA, and emotions. This is precisely why organizations entrust viadoo Change Guides with the strategic planning and successful management of their Post Merger Integration (PMI).

We want your change to succeed!

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Feel free to ask us about your ongoing or planned change initiative. Contact us if you would like to learn more about us and our services. We look forward to hearing from you.

Post merger integration white collar

Our Approach: Holistic, structured, individual guidance through Post Merger Integration

  • Quick perception of the situation
  • Recognition of (hidden) conflicts
  • Cognitive and emotional empathy
  • Coping with fears and resistance
  • Regarding fans and opponents
  • Adopting comms to change curve
  • Comms support for middle managers
  • Stakeholder and change impact analysis
  • Pivoting Workshop
  • Real Time Strategic Change (RTSC)
  • Open Space
  • World Café
  • Appreciative Inquiry
  • Future Search
  • OKR Development

viadoo's Post Merger Integration Model

Our services along a typical PMI initiative

As with any change project, there is no one-size-fits-all approach to successful post-merger integration (PMI). However, every PMI project has typical milestones. As a neutral third party and the human side of M&As, we offer the following services as part of a typical PMI initiative.

Due Diligence Initiation

Due Diligence Phase

viadoo PMI Services: 

• Evaluating the compatibility and potential clashes between the cultures of buyer and target to ensure a successful PMI.

• As a neutral third party, focus on tensions, fears, and faction formation in top management, middle management, and among the remaining employees of both organizations.

Signing

Transition Phase

viadoo PMI Services: 

• Reviewing the due diligence report(s) to identify the issues to be addressed during the integration process.

• Establishing a strong Integration Management Office (IMO) team with an integration committee and transversal integration teams (e.g. IT system integration, HR topics).

• Developing a PMI Architecture and a PMI Communication Strategy.

Closing & Day One

Post Day One Integration Phase

viadoo PMI Services:

• Implementing the PMI Communication Strategy regarding personnel decisions, planned structures, reporting channels, etc., with a focus on the information needs of middle management.

• Appointing new CEOs, managing directors, board members, and executives and promoting their integration (e.g., through conflict management workshops and team-building measures).

First 100 Days

viadoo PMI Services:

• Launching takeover period with decided joint operating structure.

• Implementing the PMI Architecture that puts people and culture at the heart.

• Accepting that this is a time of anxiety and uncertainty for employees of both merger partners.

Official Integration Completition

Business as Usual Phase

viadoo PMI Services: 

• After 12 – 18 months cost-saving synergies begin to capture

• After +36 months culture changed successfully, buyer’s & target’s employees work as one

Your most important advantages at a glance

1. Your chances of success increase to 95%

For years, only 15% to 30% of all projects have been successful. However, if you invest in change management from the outset, alongside project management, you can achieve a 95% chance of success.

2. Your skilled workers stay on board

Many skilled workers leave companies during change processes. And it’s usually the best ones who go. However, if you convince your experts of the change, motivate them, and build trust, you will keep them.

3. You reduce loss of productivity

In most change initiatives, performance of employees declines first, followed by organisation’s productivity. By up to a quarter. Those who manage their change professionally avoid these losses.

4. You gaining people's acceptance & trust

Those who take a strategic approach to change communication ensure transparency, promote acceptance, and strengthen employees’ trust in change. It also eases the commitment of middle management.

5. You have a motivated project team in place

Thanks to careful preparation (viadoo’s 4-Phase Model), everyone in the project team knows the shared vision, the reasons for the necessary change, their tasks, and their sponsors (!). This creates motivation for the work.

6. Your executives build change competence

Investing in professional change management automatically trains your managers in this discipline. At the same time, a network of change agents is created so that future changes are also successful.

We want your change to succeed!

-

Feel free to ask us about your ongoing or planned change initiative. Contact us if you would like to learn more about us and our services. We look forward to hearing from you.

Cultural Due Diligence as the cornerstone of Post Merger Integration

In order for organizations (entire companies or individual departments) to be successfully merged or integrated, the workforces must grow together. This cannot be ordered. The art lies in helping people overcome their primal social instincts. These include forming packs, setting boundaries, and reinforcing contrasts as part of what we call the Anti-Change-DNA phenomenon.

It is therefore essential to understand the cultures of the organizations involved in the merger or acquisition. This includes their unwritten values and behavioral standards that people live by in their everyday lives. The boundaries that employees set between their organization and others, and the resulting sense of identity, are also part of the culture (btw: third level of Edgar Schein‘s cultural level model).

As the human side of transformation, viadoo Change Guides specialize in identifying the cultures of organizations (companies, departments, teams) and actively supporting them in overcoming primal human instincts. Our services therefore include, among other things:

  • Minimizing the risk of a “clash of cultures”
  • Performing Cultural Due Diligence
  • Using the story listening + AI meth
Post Merger Integration Culture

Live Communication brings Post Merger Integration to Life

The communication strategy for post-merger integration must be in place by Day-One at the latest. From then on, it is important to keep internal and external stakeholders constantly up to date. For listed companies, this must be done in close coordination with the legal and investor relations departments. Often, there are not enough internal resources available for systematic change communication, which must also be coordinated with the team responsible for the technical aspects of post-merger integration.

This is where viadoo Change Guides come in: Communication is a cornerstone of our company. For 20 years now, we have been developing and implementing communication strategies for top managers in SMEs and DAX 40 companies so that they can successfully and sustainably achieve their change projects. This is especially true for PMI projects, where professional, early, and transparent communication can alleviate fears, strengthen the sense of belonging, and build trust.

Among other things, we offer the following live communication formats for successful post-merger integration:

  • Panel discussions, roundtables for more transparency
  • Workshops (Fishbowl etc.) for more participation
  • Town hall meeting moderation for information
  • Live social media sessions (e.g., LinkedIn Live)
  • Hosting of live webinars, podcasts

In addition we offer strategic communication elements like:

  • Preparing executives (middle management) for employees’ questions & concerns with Q&As
  • Preparing board members for information leaks with a crisis communication strategy

Our services related to Post Merger Integration

Key qualifications of our team regarding Post Merger Integration

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Let's talk about your project!

We want your change initiative to be a success! That’s why you can both send us your detailed request for proposal (RfP) using the form below and book a free initial consultation. You should then be able to assess whether we are the ideal change guides for you.

Send us your request for proposal (RfP):

Book a free initial consultation:

What you can expect:

1. Understand your project

We'll answer your request and arrange a call with you. You then tell us about your project, goals and challenges.
∼ 15 mins

2. Preview solutions

Together with you, we review similar cases and outline how viadoo can help you make your project a success.
∼ 10 mins

3. Tailored next steps

We will recommend tailored next steps, such as a deeper dive, an on-site survey, or the creation of a proposal.
∼ 5 mins

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