Integration Success
Challenges
2/3 of M&A projects do not deliver the expected value creation. This disappointing result is most of the time attributed to poor post-merger integration (PMI), which includes Mismanaged cultural alignment, weak synergy tracking, and ineffective leadership. Here are some of the most common reasons why post-merger management struggles to be a real success:
- Lack of synergy management: Companies often misjudge the feasibility or sustainability of projected synergies
- Incomplete integration: Operational and organizational gaps can derail synergy realization
- Cultural incompatibility: Differences in corporate culture can lead to morale issues and talent loss
- Poor planning and execution: Even with a solid strategy, weak execution can undermine integration efforts
- Disengaged leadership: Without strong leadership, integration teams may lack direction and urgency, which creates frustrations and unwanted resignations on both sides .
For companies in a post merger situation, Foxi Advisory brings an attractive value for money alternative to the large consulting firms sharing this market.
Strong belief
A successful post-merger integration is based on a methodical and disciplined approach and a strong commitment of management in both entities. Good practices include:
Define clear principles of governance in line with the initial objective of the operation and translate them within the organization
Set up a joint PMI steering leadership team
Identify upfront all the potential synergies and organizational issues to be addressed
Define detailed action plans with clear objectives, timeline and ownership
Monitor closely action plans progress using an appropriate monitoring tool
Start the preparation of the PMI as soon as possible while taking into account legal pre-closing constraints
Ensure the business continuity thereby preserving client satisfaction, economic return and full compliance of operations
Build & implement a consistent communication plan for internal and external audiences
Assets & Capabilities
Relying on our extensive experience and accelerator proprietary tools (interview guides, monitoring tools, templates, …), our team brings value-added to our clients by activating its capabilities in the following areas:
Synergies (re-)assessment
Workstreams definition, including charters
Monitoring tool and governance
Internal team training
Re-organization and process redesign
Strategic Plan
Approach
In a post-merger, it is almost as important to avoid mistakes than to raise opportunities. As a result, it is essential to start with a clear and shared vision of the risk and opportunities.
1)
Full-scope impact assessment
While in most cases, synergies were assessed during the Due Diligence process, it is highly recommended to reassess them as more information are made available including open collaboration from staff on both sides, and the internal and external environment (e.g. market conditions). Furthermore, it is very important to identify the various organizational issues that need to be resolved, as they can compromise integration if not properly addressed.
2)
Workstreams framing
A clear and shared vision of the synergies and organizational issues will be the compass of the PMI. The work must then be framed within various areas of work, with a clear definition of the mandate and responsibility. The governance of the PMI and monitoring must also be designed.
3)
Execution & monitoring
Finally, the various workstreams are launched and carefully monitored, to make sure decisions are made in due time and based on solid decision-making files. In this phase, it will also be necessary to help the Workstream leaders to unblock certain issues, and to be sensitive to weak signals and risks of team demobilization.
CLIENTS
Foxi Advisory partners with forward-thinking organizations that recognize the distinct value consulting brings to select circumstances and specialized projects—such as optimizing the return on AI investments or ensuring the seamless integration of acquisitions.
Foxi Advisory primarily serves large corporations and their subsidiaries, which often demonstrate a strong openness to engaging with consulting firms. Additionally, we occasionally collaborate with small to mid-cap enterprises, particularly those with private equity involvement at the board level.
While our team possesses the versatility to support clients across a broad array of industries, Foxi Advisory brings especially deep knowledge and expertise in the Financial Services, with particular focus on Asset Management, Corporate & Investment Banking, and Private Banking, the Manufacturing Industries, including Construction, the Energy sector and B2B Services
This sectoral focus enables us to deliver tailored, high-impact solutions that drive measurable results for our clients.
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