Supports in defining potential synergies, setting top-down targets for each, and developing a detailed plan for their implementation.
Our Approach to Post-Merger Integration Success
In short, PMI is one of the most challenging initiatives that a senior executive will ever undertake. To succeed, a PMI must achieve four fundamentally different objectives:
- Maintain momentum in the ongoing businesses.
- Maximize and accelerate synergies and value creation.
- Build the organization and align the cultures to drive the new company forward.
- Use the combined capabilities to advance the company’s competitive position.
In the past five years, we’ve helped major multinational companies complete more than 550 mergers and acquisitions. These M&A deals generated 9% more value for our clients, on average, than the average deal, in large part because of our PMI consulting services.
We help our clients succeed by combining deep industry and business strategy knowledge with comprehensive value delivery capabilities and expertise, thus accelerating and maximizing value creation throughout the deal and the PMI process.
Because no two PMIs are alike, it's hard to develop a formula. But BCG has articulated 12 imperatives for success in a three-phase approach: setting the direction, capturing the value, and building the organization. In the first phase, defining your basic objectives is essential. In the second phase, speed is crucial. And in the final phase, continuous communication ties everything together.
BCG's 12 Imperatives for Successful PMI
Set the Direction
- Start by defining the basic objectives of the integration.
- Rigorously manage the integration as a discrete program, independent of its size.
- Organize integration teams around drivers of value and around target operation model, and appoint leaders from both companies.
- Insist on senior leadership that is committed, credible, and highly visible.
Capture the Value
- Emphasize speed; Use the period before closing to start designing the future company and prepare to capture the value.
- Aggressively pursue synergies according to the integration's objectives.
- Keep the current business strong by involving current customers in the integration process.
- Decide early and explicitly on IT for the integrated company.
Build the Organization
- Design the future operating model early in the process; it may differ from the day-one structure.
- Manage talent by selecting, retaining, and developing the best people.
- Rigorously manage cultural integration and change management.
- Communicate, communicate, communicate! It is better to have too much communication than too little.
Our Client Impact on Post-Merger Integration
PMIs are often treated as a one-size-fits-all process, yet each has its own speed, style, focus, and rhythm. The PMI strategy and process must be tailored to account for those differences. Here are a few examples of BCG’s post-merger integration consulting work with clients on their post-merger integrations:
Energy
A massive deal gave rise to an exceptionally complex PMI. BCG structured and managed the program, created full transparency of costs, developed a synergy baseline, and acted as a data broker between the two companies. The discipline paid off. The merger of giants was completed on time and on budget.
A massive deal gave rise to an exceptionally complex PMI. BCG structured and managed the program, created full transparency of costs, developed a synergy baseline, and acted as a data broker between the two companies. The discipline paid off. The merger of giants was completed on time and on budget.
Financial Services
The merger of two large regional banks aimed to create the scale and efficiency to invest in critical capabilities. The design of the new organization was a particularly complex and sensitive challenge. BCG developed objectives and principles to guide the design and then helped define the new operating model. By deal close, the combined organization had strong leadership and was positioned to achieve synergies and build new capabilities.
The merger of two large regional banks aimed to create the scale and efficiency to invest in critical capabilities. The design of the new organization was a particularly complex and sensitive challenge. BCG developed objectives and principles to guide the design and then helped define the new operating model. By deal close, the combined organization had strong leadership and was positioned to achieve synergies and build new capabilities.
Our Post-Merger Integration Tools and Resources
Beyond these imperatives, we support clients by leveraging our proprietary toolkit to help with the hundreds of decisions they face during an integration. We employ these tools to manage the complexity and ensure that every integration captures its intended value:
Solution
Solution
Synergy Builder by BCG
Synergy Builder by BCG
OrgBuilder by BCG X
Helps companies manage complex changes to their organization design through an interactive tool.
OrgBuilder by BCG X
Tool
Tool
Hub by BCG
Tracks, consolidates, and coordinates the many integration workstreams and activities—an essential tool for the integration management office.
Hub by BCG
KEY Impact Management by BCG X
Provides unparalleled transparency on synergy realization, potential implementation risks, and decision needs.
KEY Impact Management by BCG X
- Our synergy database benchmarks data from hundreds of PMI projects to estimate and validate potential synergies.
- Our day-one PMI checklist provides a comprehensive list of priorities by function to ensure business continuity throughout the integration.
- Our culture survey compares behaviors across both entities up front to reduce risk and increase the speed of the integration.
Our Insights on Post-Merger Integration
Article
June 12, 2025
By fundamentally challenging the existing cost structures of the acquiring and target companies, merged organizations can capture their full potential.
Article
April 24, 2025
Combining post-merger integration with transformation allows companies to achieve operational synergies while embedding the capabilities needed for future growth.
Article
September 3, 2024
Leaders must win employees’ hearts and minds to maximize value when combining companies.
Video
July 15, 2024
Navigating the Complex Post-Merger Integration Landscape in Asia
How to address cultural nuances when managing cross-continent mergers and acquisitions in Asia.
Video
July 15, 2024
Capturing Maximum Value During a Post-Merger Integration
The vital importance of setting ambitious targets for integration teams and moving quickly to realize value.
Article
March 19, 2024
Technology is increasingly vital in facilitating the post-merger integration process, accelerating business synergies, and realizing the transaction’s broader ambitions.
