Post merger integration model is a procedure by which the acquirer and acquired company set up the framework in which they will function. This will include a plan for making decisions, a leadership and governance structure and reporting matrix, operating model and a effective management through tech-enabled data insights plan for internal and outside communications. It is vital that all departments be a part of this process, including finance, operations clinical departments, IT, supply chain, quality human resources, supply chain, and staff.

In the end, it’s the performance of PMI that determines the worth of the deal for both businesses. Without proper planning and execution it is difficult to realize any anticipated benefits, such as cross selling, platform consolidation, geographic or industry expansion as well as cost reductions, etc.

It is crucial that the organizational structure is properly established and communicated prior the start of the PMI, as this will establish the direction for the entire project. Determining roles, responsibilities and expectations early on will help minimize conflict and resistance.

This will take a lot of effort since the two merging companies may have different policies, procedures, and business processes. If, for example, one company keeps its transactions in books, while the other utilizes an enterprise resource planning system, it will require considerable effort to ensure that their systems are compatible.

This is the stage where major process adjustments and integration is made to implement the intended process, which was previously planned and prepared. At this point the acquiring company will implement the business strategies of both companies and will use the best practices of the two companies to gain synergies.