Two companies have completed the legal merger and merged - now the carve-in is about combining the two previously separate companies into one whole.
The company must therefore harmonize processes, workflows and structures or restructure business units.
The challenge here is that the initial IT system architectures of the buyer and seller are usually significantly different. Added to this are the differences in the content design of core processes in SAP, connected environment systems and the organizational responsibility for operating the systems.
The integration phase after closing is known as Post Merger Integration, or PMI for short - a phase that is crucial to the success of the entire transaction. In the worst case, unforeseen problems and the resulting unplanned costs and delays can even cause a transaction to fail.
In other words, if an M&A transaction fails, the causes are often to be found in the post-merger phase.
For one thing is the search for the object of purchase, the contract negotiations, and finally the conclusion of the merger or takeover; but the other is the challenge that lies in the merging of corporate cultures that have often grown over many years.
This is especially true if the potential risks or problems have not been identified in advance in a due diligence process.
Careful post-merger integration is therefore essential for the success of any M&A deal.
The key aspects of a PMI include: