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Hi,
If your company is doing M&A for the first time, does it make sense that the person doing the Post merger integration is new to the buying company?
I mean how can they successfully integrate the target company to the buying company if they are new and don’t know about the culture of both companies?
Have you faced this?
ThanksHi! I believe the PMI should consist of a project TEAM, where all workstreams are represented by both target and buyer, i.e. a lead is selected from both companies and they will have to work together to create and plan and follow it through. The responsible for leading the PMI project, PMI manager or director, can be from both sides or even an outsider (consultant). This persons key job is not to know the culture of both companies, but rather be a good project manager, i.e. get things done and understand when decisions need to be made and who to turn to for those decisions. Typically you would have a steering committee, also represented by both companies, that are senior and can make the though decisions as required.
It also depends on what kind of integration it is – if this is a kind where the target is small and will get merged into a bigger company where the process and culture of the Target is going to change into the Buyer’s, then it would make sense that the PMI lead perhaps is from the Buyer side and not the Target.
No individual will likely know both companies, so you could equally ask how someone from the Buyer will successfully be able to do this as he or she does not know the culture of the Target. However, there are ways in which you can get some sense of culture, and I think always including the Target employees is critical for success.
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