WEBVTT 1 00:00:07.470 --> 00:00:11.060 In short, it is realizing the value creation opportunities 2 00:00:11.060 --> 00:00:14.140 beyond the direct synergies, but it's also creating 3 00:00:14.140 --> 00:00:16.510 a platform for the future and making sure 4 00:00:16.510 --> 00:00:18.200 the company is positioned to win 5 00:00:18.200 --> 00:00:19.670 in the medium and the long term. 6 00:00:19.670 --> 00:00:22.770 We often get asked, "What is it that we need to realize 7 00:00:22.770 --> 00:00:24.940 in a post-merger integration?" 8 00:00:24.940 --> 00:00:28.730 Realizing the cost synergies, ensuring a smooth day one, 9 00:00:28.730 --> 00:00:30.710 and retaining the key talent. 10 00:00:30.710 --> 00:00:34.690 That used to be the benchmark of a successful PMI. 11 00:00:34.690 --> 00:00:36.648 Today, it no longer is. 12 00:00:39.230 --> 00:00:41.470 We looked at transformative PMIs. 13 00:00:41.470 --> 00:00:44.830 The truth is, they are much harder to pull off. 14 00:00:44.830 --> 00:00:48.920 When they succeed, the value creation is outstanding, 15 00:00:48.920 --> 00:00:51.210 and it's way beyond that of peers. 16 00:00:51.210 --> 00:00:53.200 The ones who succeed, 17 00:00:53.200 --> 00:00:55.320 they enter it with a different mindset. 18 00:00:55.320 --> 00:00:58.090 First of all, they see transformation 19 00:00:58.090 --> 00:01:01.050 as a normal state for successful companies. 20 00:01:01.050 --> 00:01:03.030 More importantly, beyond that, 21 00:01:03.030 --> 00:01:07.300 they see the PMI as an opportunity to expand 22 00:01:07.300 --> 00:01:09.930 and accelerate the transformation they're in. 23 00:01:09.930 --> 00:01:13.410 They commit to change, invest into the integration, 24 00:01:13.410 --> 00:01:15.213 and address culture holistically. 25 00:01:19.510 --> 00:01:21.970 As there often is significant time between signing 26 00:01:21.970 --> 00:01:25.170 and closing, you need to leverage that time maximally. 27 00:01:25.170 --> 00:01:28.400 Any standalone measures, you should implement immediately. 28 00:01:28.400 --> 00:01:33.400 For the rest, you should use the time to plan in detail. 29 00:01:33.650 --> 00:01:36.120 And most importantly, after closing, 30 00:01:36.120 --> 00:01:37.950 with all the initiatives in motion, 31 00:01:37.950 --> 00:01:40.350 you need a rigorous program governance 32 00:01:40.350 --> 00:01:42.313 to ensure executional certainty. 33 00:01:45.720 --> 00:01:49.540 Also we at BCG approach transformation and PMIs differently. 34 00:01:49.540 --> 00:01:54.540 We combine deep PMI expertise with people from BCG TURN 35 00:01:54.780 --> 00:01:57.560 or transformation specialist unit. 36 00:01:57.560 --> 00:02:00.250 These nuclear schemes, we complement further 37 00:02:00.250 --> 00:02:03.983 with functional topic experts in areas such as procurement, 38 00:02:03.983 --> 00:02:07.100 IT, or supply chain, just to name a few. 39 00:02:07.100 --> 00:02:10.330 The strength and the resilience built into companies 40 00:02:10.330 --> 00:02:15.330 who have undergone a transformational PMI is outstanding. 41 00:02:16.300 --> 00:02:19.023 To get it right, the rewards are there.