This paper presents a framework based on both hard and soft factors to understand the outcome of post merger integration. This framework can be an excellent tool in decision making to ensure PMI success. (400 pages)
Managers have focused on hard factors - strategic and financial synergy - to drive post merger integration efforts overlooking personal motivations, and organizational dynamic which can fundamentally alter the outcome of a merger or acquisition. This research explored the factors - both hard and soft - that drive PMI success and recommends a framework for managers to use to ensure success in their M&A adventures.
This paper also discusses key topics in Post Merger Integration:
- Impact of pre-acquisition activities on PMI
- Impact of organizational culture on PMI. In fact, culture must be an evaluation criteria for the M&A itself
- What roles drive PMI success?
- What negative forces can derail an M&A post merger?
- In a multi national M&A situation, what is the impact of national language and culture on PMI success?
- What drives employee motivation and how does that affect PMI?
- What does the culture of the mergered entity look like and how does that determine merger outcomes?
- How do soft factors (personal motivation and organization culture etc.) drive the financial performance of a merged entity?
This is an excellent discussion on Post Merger Integration with an assessment of both soft and hard factors and the added complication of cross-border acquisitions mixed in as well. Great resource for the CIO to understand how to manage a PMI initiative for success!
