Post merger integration model is a method that helps the acquirer and acquired company create the framework within which they’ll function. This includes the decision-making process, a governance and leadership structure and operating model, reporting matrix and a plans for external and internal communications. This planning phase is crucial for all departments including finance and operations, IT departments, clinical as well as quality, supply chain HR, staff, and technologys role in the post merger integration in italy supply chain.

In the end, the success of PMI will determine the value of the deal for both companies. Any benefits that are planned, whether they stem from platform consolidation, cross-selling or expansion of industry or geographical or cost savings are difficult to realize without proper planning and execution.

It is crucial that the organizational structure is well established and communicated before the beginning of the PMI as this will establish the direction for the entire project. This can be done by delineating roles, responsibilities and expectations at the beginning and will reduce the likelihood of conflict and opposition.

This will take a lot of effort, as the two companies that merge may have different policies procedures, procedures, and business processes. For example when one company keeps transactional data in its books and the other utilizes an ERP system, a lot of effort will have to be put into making their systems compatible.

This is when major changes and integrations are made to meet the final-state procedures that were conceived and developed. In this phase, the acquiring company will implement the combined business strategies and implement best practices from the two companies to gain synergies.