Engagement summary
A global consumer healthcare products manufacturer was looking to avoid common post merger integration mistakes that undermine deals involving different cultures and organizations from different regions. We collaborated with the leadership team and helped them devise a robust post merger integration (PMI) plan to tackle business disruptions, bridge performance gaps, and create a fully integrated enterprise.
At Infiniti Research, we understand that every merger is unique and requires customized solutions to ensure post merger integration success and generate value for both companies. Hence, we offer customized solutions to meet your unique business needs and help solve your challenges within short time frames.
Infiniti Research has successfully helped clients across the world to overcome post merger integration challenges. Our versatile team of market research experts and subject matter experts has delivered unprecedented results by maximizing the value captured during post-merger integration. Contact us to know more about our M&A support solutions.
About the client
The client is a North American consumer healthcare company committed to providing evidence-based over-the-counter (OTC) consumer healthcare products, including oral healthcare products, contact lens solutions, and natural healthcare solutions within Australia, New Zealand, and a few other target markets.
Client’s requirement
As a part of their global business expansion strategy, the client had recently acquired a major supplier to enhance sales and strengthen their innovation abilities. Having acquired different companies, the client was well aware of the risks associated with the deal.
Given the complexities involved in cross-border deals, even strategically sound deals fail to produce the desired outcome due to three key factors – missed targets, loss of people, and performance mismatches. In this case, the consumer healthcare company was aware of the additional challenges related to regional and cultural differences in cross-border M&As. The company faced challenges in efficiently managing post merger integrations. The lack of having a coordinated and flexible PMI plan further made it difficult for the client to achieve their targets. The leadership team needed a post merger integration plan with well-defined payoffs and strategies to tackle risks to succeed and achieve their performance targets.
A successful post merger integration strategy needs to act as a catalyst to induce the desired result by focusing on the right target areas. We’ve got the experience and expertise to help you develop a strategy to tackle your PMI challenges – Request a free proposal to get started!
Other challenges that the client was looking to tackle by collaborating with us-
Cultural shift – Like any other company, building a strong strategy around the culture to have a smooth integration process and preserve deal value was of the utmost importance for the client.
Synergy management – Achieving synergies was crucial for the client to drive more value in the integration process.
Customer engagement – Since customer engagement was important for the client’s business success, they wanted to drive customer value and experience across channels.
Business momentum – The issue which underpinned all integration challenges faced by the client was maintaining momentum. Hence, by setting KPIs, the client wanted to gauge and analyze the integration process.
Our tailored approach
To tackle the challenges and risks associated with cross-border deals, the client needed a holistic approach and a custom-built strategy to enhance post merger integration. Our cross-functional team of market experts collaborated with the senior management and leadership team to identify and tackle the company’s biggest integration risks. During this process, we noticed distinct differences between the client company and the acquired firm.
Post merger integration planning has been widely accepted as one of the most daunting challenges in today’s business world. Request a free brochure to find out how our solutions can help you tackle this challenge.
Our approach to post merger integration helped the client achieve rapid growth by helping them in the following ways:
- Tackled business disruptions by identifying people most impacted by the change
- Devised a long-term strategic plan to mitigate risks and ensure continuity
- Analyzed factors impacting the cultural shift by prioritizing major differences
- Developed an action plan for successful post merger integration
Outcome
The solution offered enabled the client to deliver on the business promise while protecting its core operations, retaining employees, and strengthening customer relationships. The well-thought-out PMI plan also helped the client defy the merger odds and achieve significant improvements in quarterly results, including-
- 2x increase in operating profits
- 32% increase in sales
- Enhanced synergy management
How Infiniti Research can support your post merger integration efforts
Today mergers and acquisitions are at the top of the agenda of many CEOs. One of the primary reasons for this is that businesses are on the constant outlook for ways to capture a fair share of the market and protect their turf through M&A activities. Post merger integration is a crucial stage in realizing the actual value of a merger or acquisition. Since there is no one-size-fits-all approach to a successful post merger integration process, careful planning, strategic management of business processes, and synergy management will help maximize deal value.
However, we are all aware that most of the failed deals have ultimately overlooked elements of the post merger integration process. Rather than being seen as a necessary evil, PMI planning should be seen as a way to add value to a business, says a market research expert at Infiniti Research.
At Infiniti Research, we offer holistic solutions to help our clients maximize M&A success. Since no two mergers are alike, we conduct in-depth research and provide industry-specific insights to help businesses drive business value. We also ensure that factors such as the workforce size, geography, and tenure of employees are considered while creating post-merger integration plans. Request more information to learn more about our M&A capabilities.
