In short, it is realizing the value creation opportunities
beyond the direct synergies, but it's also creating
a platform for the future and making sure
the company is positioned to win
in the medium and the long term.
We often get asked, "What is it that we need to realize
in a post-merger integration?"
Realizing the cost synergies, ensuring a smooth day one,
and retaining the key talent.
That used to be the benchmark of a successful PMI.
Today, it no longer is.
We looked at transformative PMIs.
The truth is, they are much harder to pull off.
When they succeed, the value creation is outstanding,
and it's way beyond that of peers.
The ones who succeed,
they enter it with a different mindset.
First of all, they see transformation
as a normal state for successful companies.
More importantly, beyond that,
they see the PMI as an opportunity to expand
and accelerate the transformation they're in.
They commit to change, invest into the integration,
and address culture holistically.
As there often is significant time between signing
and closing, you need to leverage that time maximally.
Any standalone measures, you should implement immediately.
For the rest, you should use the time to plan in detail.
And most importantly, after closing,
with all the initiatives in motion,
you need a rigorous program governance
to ensure executional certainty.
Also we at BCG approach transformation and PMIs differently.
We combine deep PMI expertise with people from BCG TURN
or transformation specialist unit.
These nuclear schemes, we complement further
with functional topic experts in areas such as procurement,
IT, or supply chain, just to name a few.
The strength and the resilience built into companies
who have undergone a transformational PMI is outstanding.
To get it right, the rewards are there.