PMI Consumer Goods
This report, the seventh in BCG’s series on PMI, examines the drivers of success that we observed across 25 integrations of consumer goods companies.Read the article
Acquisitions in consumer goods can add significant value, but only if the integration teams stay focused on the important sources of value and risk that the integration brings. Clumsy integration can drain brand equity and even lead to a mass exodus of talent, as has happened in some recent large deals. Proceeding too cautiously, however, can leave potential gains on the table and erode the deal’s original rationale.
Acquirers can best manage that balancing act by clarifying their goals for the deal. Before jumping into the integration, they’ll want to specify where they expect to create value. In addition, critical sources of risk should be clearly identified and prioritized, and mitigation actions should be developed. These value drivers and risk factors should determine much about how the integration should be organized and executed.
Above all, acquirers must: