Note on Postmerger Integration

8 Pages Posted: 9 Jun 2009

See all articles by L. J. Bourgeois

L. J. Bourgeois

University of Virginia - Darden School of Business

Victor Abiad

University of Virginia - Darden School of Business

Abstract

Approximately 65% to 85% of mergers fail. That's a startling statistic. While there are myriad reasons why mergers are not successful, in many cases the reason is simple: a failure to develop and execute an appropriate postmerger integration (PMI) strategy. Clues to successful PMIs can be gleaned from the 15% to 35% of mergers that do succeed; this note contains some tips and best practices distilled from those successes. Because every company and every merger is different, this collection of practices is by no means exhaustive. Instead, its purpose is to serve as a starting point for the creation of a well-tailored strategy for a firm planning to undertake the assimilation of an acquisition into a new, combined entity.

Excerpt

UVA-BP-0539

Feb. 19, 2009

NOTE ON POSTMERGER INTEGRATION

Introduction

Approximately 65% to 85% of mergers fail. That's a startling statistic. While there are myriad reasons why mergers are not successful, in many cases the reason is simple: a failure to develop and execute an appropriate postmerger integration (PMI) strategy. Clues to successful PMIs can be gleaned from the 15% to 35% of mergers that do succeed; this note contains some tips and best practices distilled from those successes. Because every company and every merger is different, this collection of practices is by no means exhaustive. Instead, its purpose is to serve as a starting point for the creation of a well-tailored strategy for a firm planning to undertake the assimilation of an acquisition into a new, combined entity.

Tip 1: Create a dedicated integration team

. . .

Keywords: Postmerger integration strategy, postmerger integration tips and practices

Suggested Citation

Bourgeois, L. Jay and Abiad, Victor, Note on Postmerger Integration. Darden Case No. UVA-BP-0539, Available at SSRN: https://ssrn.com/abstract=1416565

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

Victor Abiad

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
425
Abstract Views
1,843
rank
80,162
PlumX Metrics