Integration Matters!

Do you know what causes most corporate acquisitions or corporate transactions in general to fail? It’s not the purchase prices (they are already negotiated at the time of the deal).

Nor is it the customers or the employees of the target company.
It’s the integration.

Anyone can buy!

At least that is the assumption, which is of course true in parts. Buying a company is exhausting and requires a lot of diligence. The purchase has to be financed and so most of the efforts in the M&A process on the buyer side are mostly focused on the financial implications and the payment of the transaction loans.

However, at eightM, we believe this is a capital mistake.

Signing a purchase agreement is not an art. But the real art lies in integrating the target company. Because only if the target company can seamlessly integrate into the cosmos of the buying company, future synergy effects can be exploited.

Processes! Processes! Processes!

Once a company has been purchased, often enough the management level or, in the case of small companies, the managing owner says goodbye. This must be planned for and should not be underestimated.

The processes of the target company should already be analyzed and understood in detail during the due diligence.

There should be a clear post-merger integration process for the buying company. A standard process. A process that can be run through and improved again and again. Only in this way can a good buy and build concept grow into a sustainable strategy.

PMI Manager ahead!

When you set up a Buy and Build concept, you should get a PMI Manager on board. Someone who fully understands the buyer’s processes and exactly which units and processes need to be merged. Someone who makes sure that the two company cultures grow together. Someone who creates a feel-good atmosphere at the target company and thus maintains the company’s good earnings during the integration phase.

We advise and accompany many Buy and Build concepts for many years and help you in your successful hyper growth with our know how. Talk to us. Coffee always works.