# Post-merger integration > Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Post-merger_integration > Markdown URL: https://mediated.wiki/source/Post-merger_integration.md > Source: https://en.wikipedia.org/wiki/Post-merger_integration > Source revision: 1348831969 > License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/) Business rearrangement after a merger This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) This article use of references leads to impression that the article is being used as vehicle for promotion contains promotional content. Please help improve it by removing promotional language and inappropriate external links, and by adding encyclopedic text written from a neutral point of view. See our advice if the article is about you and read our scam warning in case someone asks for money to edit this article. (May 2019) (Learn how and when to remove this message) This article needs more citations. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Post-merger integration" – news · newspapers · books · scholar · JSTOR (May 2019) (Learn how and when to remove this message) (Learn how and when to remove this message) **Post-merger integration** (**PMI**) is the process of combining and rearranging businesses to materialize potential efficiencies and [synergies](/source/Corporate_synergy) that usually motivate [mergers and acquisitions](/source/Mergers_and_acquisitions). The PMI is a critical aspect of mergers; it involves combining the original logistical-socio-technical systems of the merging organizations into one newly combined system. ## Overview The process of combining two or more organizations into a single organization involves several organizational systems, such as assets, people, resources, tasks, and the supporting information technology.[1] The process of combining these systems is known as 'integration'. Integration Planning is one of the most challenging areas to address pre-close during a [merger or acquisition](/source/Mergers_and_acquisitions). Even though culture clash between companies can cause integration problems, only 4% of the executives in a survey by Pritchett, LP reported that their organizations include culture-specific questions in their due diligence checklists.[2] Culture-specific due diligence may include cultural screening and creating a cultural profile of the target firm. GE Capital conducts a cultural assessment of prospective candidates against metrics such as trust in existing managers, language barriers, and operating processes to then facilitate a culture work out session between both sides.[3] An example of a typical structure for an integration consists of three layers: a steering committee, an integration management office (led by an integration manager) and a variety of additional teams organized by function (i.e. sales, human resources, finance, and information technology, etc.) and/or by business unit, product line, process, or geographic location.[4] More communication to employees is usually necessary during post merger integrations than during day-to-day operations.[5] Fortunately, many of the questions from employees can be anticipated.[6] Achieving successes early in an integration can help build confidence in a deal.[7] Common problems that may be encountered during post merger integrations include resistance to change, divided loyalties, issues with employee trust in leaders, blurred roles and responsibilities, unclear reporting relationships, communication tangles, job insecurity, unusual employee turnover, and infighting. [8][9] ## Organizational lifecycle This section needs more citations. Please help improve this article by adding citations to reliable sources in this section. Unsourced material may be challenged and removed. Find sources: "Post-merger integration" – news · newspapers · books · scholar · JSTOR (May 2019) (Learn how and when to remove this message) Integration fits within an organizational lifecycle or specific business mergers and acquisitions cycle where businesses buy, integrate, then dispose of businesses: - Definition of vision & [strategy](/source/Strategic_planning) - Selection of growth method: organic vs inorganic - Target identification - Pre-deal evaluation & [due diligence](/source/Due_diligence) - Negotiation & deal completion - Post-merger integration - Acquisition integration - Ongoing improvement - Disposal ## See also - [Mergers and acquisitions](/source/Mergers_and_acquisitions) - [Program management](/source/Program_management) - [Project management](/source/Project_management) - [Change management](/source/Change_management) - [Corporate finance](/source/Corporate_finance) - [Management due diligence](/source/Management_due_diligence) ## References 1. **[^](#cite_ref-1)** Anthony F., Buono; Bowditch, James L. (1989). [*The human side of mergers and acquisitions: Managing collisions between people, cultures, and organizations*](https://archive.org/details/humansideofmerge00buon). San Francisco: Jossey-Bass Publishers. [ISBN](/source/ISBN_(identifier)) [1-55542-135-0](https://en.wikipedia.org/wiki/Special:BookSources/1-55542-135-0).[*[pages needed](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources)*] 1. **[^](#cite_ref-2)** ["Corporate Culture: The "X Factor" in Merger Success and Failure"](https://www.mergerintegration.com/corporate-culture-x-factor-merger-success-and-failure). *Mergerintegration.com*. Retrieved 26 June 2019. 1. **[^](#cite_ref-3)** Lee Marks, Mitchell; H. Mirvis, Philip (December 2011). "A framework for the human resource role in managing culture in Mergers and Acquisitions". *Human Resource Management*. **50** (6): 859–877. [doi](/source/Doi_(identifier)):[10.1002/hrm.20445](https://doi.org/10.1002%2Fhrm.20445). 1. **[^](#cite_ref-4)** ["The 5 Critical Elements of an M&A Integration Plan"](https://www.mergerintegration.com/strategy-planning/post-merger-integration-plan-merging-businesses). *Mergerintegration.com*. Retrieved 26 June 2019. 1. **[^](#cite_ref-5)** ["Top 10 Reasons Why More Employee Communication Is Necessary When Merging Companies"](https://www.mergerintegration.com/post-merger-management/merging-companies-reasons-employee-communication). *Mergerintegration.com*. Retrieved 26 June 2019. 1. **[^](#cite_ref-6)** ["M&A Common Questions from Employees, Customers, and Media"](https://www.mergerintegration.com/post-merger-management/planning-mergers-questions-employees-customers-media). *Mergerintegration.com*. Retrieved 26 June 2019. 1. **[^](#cite_ref-7)** ["Engineer Early Success in Your Merger"](https://www.mergerintegration.com/engineer-early-success-your-merger). *Mergerintegration.com*. Retrieved 26 June 2019. 1. **[^](#cite_ref-8)** Price, Pritchett; Pound, Ron (2018). [*Smart Moves: A Crash Course on Merger Integration Management*](https://www.mergerintegration.com/sites/default/files/Smart-Moves_0.pdf) (PDF). Dallas, Texas: Pritchett, LP. p. 8. [ISBN](/source/ISBN_(identifier)) [978-0-944002-03-2](https://en.wikipedia.org/wiki/Special:BookSources/978-0-944002-03-2). 1. **[^](#cite_ref-9)** Lipponen, Jukka; Kaltiainen, Janne; Van Der Werff, Lisa; Steffens, Niklas K. (2020). ["Merger-specific trust cues in the development of trust in new supervisors during an organizational merger: A naturally occurring quasi-experiment"](https://doi.org/10.1016%2Fj.leaqua.2019.101365). *The Leadership Quarterly*. **31** (4) 101365. [doi](/source/Doi_(identifier)):[10.1016/j.leaqua.2019.101365](https://doi.org/10.1016%2Fj.leaqua.2019.101365). [hdl](/source/Hdl_(identifier)):[10138/318274](https://hdl.handle.net/10138%2F318274). [S2CID](/source/S2CID_(identifier)) [212957211](https://api.semanticscholar.org/CorpusID:212957211). v t e Corporate finance and investment banking Capital structure Convertible debt Exchangeable debt Mezzanine debt Pari passu Preferred equity Second lien debt Senior debt Senior secured debt Shareholder loan Share capital Subordinated debt Warrant Transactions (terms/conditions) Equity offerings At-the-market offering Book building Bookrunner Bought deal Bought out deal Corporate spin-off Direct public offering Equity carve-out Follow-on offering Greenshoe Reverse Initial public offering Pre-IPO Private placement Public offering Rights issue Seasoned equity offering Secondary market offering Underwriting Mergers and acquisitions Buy side Contingent value rights Control premium Demerger Divestment Drag-along right Management due diligence Management entrenchment Mandatory offer Minority discount Pitch book Pre-emption right Proxy fight Post-merger integration Sell side Shareholder rights plan Special-purpose entity Special situation Squeeze-out Staggered board of directors Stock swap Supermajority amendment Synergy Tag-along right Takeover Reverse Tender offer Leverage Debt restructuring Debtor-in-possession financing Dividend recapitalization Financial sponsor Leveraged buyout Leveraged recapitalization High-yield debt Private equity Project finance Valuation Accretion/dilution analysis Adjusted present value Associate company Business valuation Conglomerate discount Cost of capital Weighted average Discounted cash flow Economic value added Enterprise value Fairness opinion Financial modeling Free cash flow Free cash flow to equity Market value added Minority interest Mismarking Modigliani–Miller theorem Net present value Pure play Real options Residual income Stock valuation Sum-of-the-parts analysis Tax shield Terminal value Valuation using multiples List of investment banks Outline of finance --- Adapted from the Wikipedia article [Post-merger integration](https://en.wikipedia.org/wiki/Post-merger_integration) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Post-merger_integration?action=history)). 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