{"id":28881,"date":"2023-08-10T09:46:33","date_gmt":"2023-08-10T08:46:33","guid":{"rendered":"http:\/\/www.turner.nl\/strategy-execution\/the-10-principles-of-post-merger-integration-and-holding-synergy\/"},"modified":"2023-10-19T09:12:20","modified_gmt":"2023-10-19T08:12:20","slug":"the-10-principles-of-post-merger-integration-and-holding-synergy","status":"publish","type":"page","link":"https:\/\/www.turner.nl\/en\/strategy-execution\/the-10-principles-of-post-merger-integration-and-holding-synergy\/","title":{"rendered":"The 10 Principles of Post-Merger Integration and Holding Synergy"},"content":{"rendered":"\t\t
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Strategy = Execution<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  1. Develop a common strategy<\/strong><\/li><\/ol>

    Strive for a game plan that clearly indicates how you will work together to bolster your competitive position. The main question is: where is the potential for synergy and how can it be achieved?<\/p>

      1. Are the business units\u2019 strategies so similar that any corresponding core competencies could help generate a lasting competitive advantage?<\/li>
      2. Do any of the units possess unique core competencies that would enable you to outperform the competition?<\/li>
      3. Could these core competencies improve performance in other business units\u2019 value chains to such an extent that it makes sense to invest time and energy into organizing an exchange?<\/li>
      4. What role do the holding and business unit managers play in order to achieve synergy?<\/li>
      5. How do you garner and maintain the necessary support?<\/li><\/ol><\/li><\/ol>

        \u00a0<\/p>

        1. Ensure that post-merger integration is explicitly included in your due diligence audit<\/strong><\/li><\/ol>

          Achieving synergy in mergers and acquisitions starts with guaranteeing a focus on integration from the very get-go in the preparation of a deal. This is equally true of hard and soft aspects of integration.<\/p>

          1. Decide what kind of integration you want for each business unit<\/strong><\/li><\/ol>

            There are two main variables that determine the shape and extent of integration: the desire for organizational autonomy and the need for strategic coherence. When combined, these variables can result in four types of integration:<\/p>

              1. Preservation<\/li>
              2. Symbiosis<\/li>
              3. Holding<\/li>
              4. Absorption<\/li><\/ol><\/li><\/ol>

                \u00a0<\/p>

                1. Begin by disentangling<\/strong><\/li><\/ol>

                  In many cases, integration is preceded by a process of disentanglement. This presents the following challenges:<\/p>

                      1. Guaranteeing continuity during the entire transition, preventing chaos and customer and employee churn<\/li>
                      2. Minimalizing dis-synergy<\/li>
                      3. Guaranteeing effective collaboration between buyer and seller during the transition<\/li><\/ol><\/li><\/ol><\/li><\/ol>

                        \u00a0<\/p>

                        1. Set goals and action plan for Day 1 and for the first 100 days<\/strong><\/li><\/ol>

                          Day 1 of a merger or acquisition is crucial for several reasons.<\/p>

                            1. It\u2019s the day when the transaction actually comes to fruition in all respects (balance sheet, transfer of shares, legal\/managerial merger, etc.)<\/li>
                            2. It is necessary to maintain value during the merger\/acquisition.<\/li><\/ol><\/li><\/ol>