How to Buy a Company & Gain A Competitive Advantage
Evaluating the process of buying a company and managing the integration process.
Changes in the Market
Occasionally, changes in the market have such a significant impact on industry, companies are forced to adjust their strategy to align with new trends and market requirements.
In most cases, buying up other companies or selling off exiting assets/divisions can be a great way for a company to restructure, pivot, or gain a new advantage in the marketplace.
When this happens, companies frequently face immediate organizational and structural challenges. It is not rare for inconsistent planning and execution to destroy the desired transaction value instead of increasing it. This is where the practice of “post-merger integration” or (PMI) comes into play.
What is the goal of a PMI?
The goal of a post-merger integration (PMI) is to structure complex integration processes effectively and thereby create synergies in order to satisfy the high expectations which always accompany a merger.
The following criteria must be satisfied in order to carry out a PMI efficiently: Agree on realistic goals, define a new business model, and set up strict project management with focused communication to all stakeholders.
If you’d like to chat in detail about how to systematic concept and design a new business/organization profit model, feel free to contact me via Twitter.
IT due diligence?
In the context of post-merger integration, IT due diligence is the need to locate and understand the technology stack, including key intellectual property. Corporate technology stacks evolve over decades, and you’re expected to evaluate and bring everything to the surface within months. To read more about technology within the post-merger (PMI) process, feel free to check out — Understanding The Value of Digital Strategy During Post-Merger Integration.
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