Comments on: The Looming Failure of Post-Merger Integration http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/ A member of the Gartner Blog Network Sat, 21 Jan 2012 07:44:58 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Kristin Moyer http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-4669 Kristin Moyer Fri, 17 Jul 2009 16:23:57 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-4669 Great point, and thanks for the link. BoA was the first thing that came to my mind as I read through your comment, and I see it is noted in this link as well. The post-merger integration activity I've personally been involved with lately has been interesting. It's not been with the distressed acquisitions that occurred over the past 18 months or so, but rather with banking organizations of all types, sizes and geographies that are trying to rationalize and consolidate redundant applications - ideally moving to a more modern architecture at the same time. This activity will result in cost efficiencies for sure, but lots of other benefits as well (agility, transparency...). Great point, and thanks for the link. BoA was the first thing that came to my mind as I read through your comment, and I see it is noted in this link as well.

The post-merger integration activity I’ve personally been involved with lately has been interesting. It’s not been with the distressed acquisitions that occurred over the past 18 months or so, but rather with banking organizations of all types, sizes and geographies that are trying to rationalize and consolidate redundant applications – ideally moving to a more modern architecture at the same time. This activity will result in cost efficiencies for sure, but lots of other benefits as well (agility, transparency…).

]]> By: Post Merger Integration Blog http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-4047 Post Merger Integration Blog Mon, 29 Jun 2009 17:46:09 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-4047 Thanks for a good post. Always good when attention is brought on post merger integration. I agree on all three mentioned points about complexity, due diligence and market. However, I believe that the most important risk is the fact that you are buying distressed or bankrupt companies and in the long run the value might deteriorate. A recent study by Cass Business School actually says acquisitions of distressed targets may create value for bidders in the short term, but struggle to improve returns in the long-term. This is to my mind particually relevant for the bank-deals we saw in the fall and winter. You can read more here: http://www.ft.com/cms/s/0/6f2b2f98-5900-11de-80b3-00144feabdc0.html?ftcamp=rss Best regards Author, Post Merger Integration Blog http://www.postmergerintegration.eu Thanks for a good post. Always good when attention is brought on post merger integration.

I agree on all three mentioned points about complexity, due diligence and market. However, I believe that the most important risk is the fact that you are buying distressed or bankrupt companies and in the long run the value might deteriorate.

A recent study by Cass Business School actually says acquisitions of distressed targets may create value for bidders in the short term, but struggle to improve returns in the long-term. This is to my mind particually relevant for the bank-deals we saw in the fall and winter.

You can read more here:
http://www.ft.com/cms/s/0/6f2b2f98-5900-11de-80b3-00144feabdc0.html?ftcamp=rss

Best regards

Author, Post Merger Integration Blog
http://www.postmergerintegration.eu

]]> By: Juan Tosoni http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-3861 Juan Tosoni Tue, 23 Jun 2009 17:39:08 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-3861 Any business performing a significant M&A integration should have a framework that allows them to execute and track the PMI project end-to-end. There are many consulting firms with specialized services in this regard and leveraging PMI "dashboard technology" is an excellent method of keeping the full integration team on the same page at all times no matter what stage or business function. Companies can't expect to keep a mammoth integration on track unless they leverage the appropriate tools from consulting firms or technology providers that specialize in PMI. Juan Tosoni Founder & CEO TX2 Systems, Inc. www.tx2systems.com Any business performing a significant M&A integration should have a framework that allows them to execute and track the PMI project end-to-end. There are many consulting firms with specialized services in this regard and leveraging PMI “dashboard technology” is an excellent method of keeping the full integration team on the same page at all times no matter what stage or business function. Companies can’t expect to keep a mammoth integration on track unless they leverage the appropriate tools from consulting firms or technology providers that specialize in PMI.

Juan Tosoni
Founder & CEO
TX2 Systems, Inc.
http://www.tx2systems.com

]]> By: BrootSoft http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-1279 BrootSoft Tue, 17 Mar 2009 14:49:55 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-1279 Have a look at BrootSoft as PMI for IT specialists with over 20 years in the industry. They have recently partnered with Capco to form a PMI powerhouse. They have case studies showing that they can complete an integration assignment in half the industry standard timeframe resulting in significant ROI. IT should be one of the major considerations as so much of the synergy between the two entities is derived from IT. Great post. Have a look at BrootSoft as PMI for IT specialists with over 20 years in the industry. They have recently partnered with Capco to form a PMI powerhouse.

They have case studies showing that they can complete an integration assignment in half the industry standard timeframe resulting in significant ROI.

IT should be one of the major considerations as so much of the synergy between the two entities is derived from IT.

Great post.

]]> By: Kristin Moyer http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-839 Kristin Moyer Tue, 17 Feb 2009 16:53:15 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-839 Hi Alex, thanks for reading and thanks for the comment. Ideally, IT would not be a secondary consideration. Though I agree, it usually is. Hi Alex, thanks for reading and thanks for the comment. Ideally, IT would not be a secondary consideration. Though I agree, it usually is.

]]> By: Alex Bishops http://blogs.gartner.com/kristin_moyer/2009/01/23/the-looming-failure-of-post-merger-integration/comment-page-1/#comment-818 Alex Bishops Fri, 13 Feb 2009 21:38:09 +0000 http://blogs.gartner.com/kristin_moyer/?p=531#comment-818 Excellent M&A article on IT…. simple, elegant, and thorough…well done! However, I would like to point out that most deals are done behind closed doors. Regardless of the premise driving the deal, IT is almost always a secondary consideration to the balance sheet in the banking industry. And, even with the major deals in play today, the time from the announcement to the close date has not varied from historical norms. This is when the IT teams usually begin their planning. Excellent M&A article on IT…. simple, elegant, and thorough…well done! However, I would like to point out that most deals are done behind closed doors. Regardless of the premise driving the deal, IT is almost always a secondary consideration to the balance sheet in the banking industry. And, even with the major deals in play today, the time from the announcement to the close date has not varied from historical norms. This is when the IT teams usually begin their planning.

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