Design of the merger integration project

Here, we describe tasks using goals and objectives, look at their automatability, and provide the roles assigned to the task as well as a description. In order to automate, a set of data objects is listed that the tasks needs to execute. In addition, relevant questions to be asked during the execution of the task are provided.

Goals and objectives

  The task has the following goal(s):

• Draft integration project plan:  prepared

 The task has the following objectives:

• Integration success:  maximized

• Synergy:  maximized

• Risk:  minimized

Roles assigned to the task

• Business owner within the buyer company

• M&A Lead of the buyer

• Post-Merger integration lead of the buyer

• PMI project manager of the buyer

Automatability

This task is partially automatable. Project planning applications are available for the actions "Plan and simulate project" and "Calculate critical path".

 Task description

 It is important to remember that the term 'project' implies that we have professional management of the integration by professional project managers who have experience with complex projects and are equipped with the skills of a certified project manager. The term 'project' also implies that we have a work breakdown structure with tasks to be performed in the project. Buying companies that make frequent acquisitions have a work breakdown structure template that they adapt to each of the new merger integration projects. This ensures completeness in terms of coverage of all integration topics and also allows us to assess whether we have sufficient resources and whether the resources know what to do in the integration. In this task, the sequence of integration activities is recorded in the integration project plan. It determines when the individual integration steps can be performed and whether enough resources are available to perform them at that time. The dependencies between the individual integration activities and the resource situation are taken into account. Critical paths are analyzed. IT integration activities play a special role here, on which many other activities depend. Possible risks are listed in the integration plan risks, mitigations are planned and the risks are tracked in the following integration project.

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 The task works on the following data object types, among others:

 Integration project, Integration project plan, Integration Plan Risk, Integration budget, Draft integration project plan, Integration project resources, Organizational plan of the target, Buyer organization, Draft financial integration plan, Task of the draft integration plan for culture, Draft strategy integration plan, Draft production integration plan, Draft plan for future personnel costs, Mapping target jobs to NewCo job descriptions, Draft HR communication plan, Draft HR onboarding plan, Draft HR Training Plan, Draft culture integration plan, Draft tax integration plan, Draft Business Model Integration Plan, Draft Operations Integration Plan, Draft technical integration plan, Draft GTM integration plan, Draft IP Integration Plan, Draft HR Integration Plan, Draft Legal Integration Plan, Draft integration plan for partnerships, Draft IT integration plan, Draft integration plan.

 Questions for the execution of the task

The task is executed with the following questions, among others:

• Do the subprojects of the integration project cover all aspects of the integration plan?

• Which time-based dependencies exist between the sub-integration plans?

• Which sequence-based dependencies exist between the sub-integration plans?

• Does the chronological sequence of integration activities make sense?

• Have all stakeholders of the integration project and their involvement been defined?

• How do we motivate stakeholders of the integration project?

• How do we motivate key players in the integration project?

• How do we award stakeholders and key players in the integration project?

• Are we planning to celebrate milestones and successes in the integration project and when?

• Are all required resources available at the appropriate time?

• Does the load of integration activities at any time adversely impact the NewCo business operations and results?

• How do we avoid work overload of key players in the integration project?

• What time delays do we expect in the project?

• What is the effect of co-determination on project progress?

• Were different scenarios of time shifts in individual subprojects, especially IT integration, simulated?

• How do we react to any unplanned changes during the project, such as massive price reductions in the sales markets, a pandemic or an economic downturn?

• Which integration activities should start before day one and how and who does execute them?

• What are the conditions to declare that the integration is completed?

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