Postmerger Integration
Postmerger Integration
The Postmerger PlanWhat is the window of time for implementing a postmerger plan?
The Postmerger Plan
What is the window of time for implementing a postmerger plan?
No one has ever suggested a minimum, but a number of consulting companies have suggested maximums. Realistically, the integration can take up to a year, with six months as a typical target, with the most critical phases completed in three months or, more poetically, “100 days.” Recent research, however, has found a positive correlation between postmerger success and a slower integration process.
Clearly the longer the acquirer waits to add value to the unit—presumably through some form of integration—the more expensive it will be to repay the premium paid to purchase the unit. On the other hand, rushing the process can create bad will and do long-term damage. Acquirers should proceed carefully on a case-by-case basis.