Merger integration
Encyclopedia
Merger integration, or post-merger integration refers to the aspect of an organization
al merger
that involves combining the original socio-technical systems of the merging organizations into one such newly-combined system.
Integration fits within an organizational life-cycle or specific business mergers & acquisitions cycle where businesses buy, integrate then dispose of other businesses:
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
al merger
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
that involves combining the original socio-technical systems of the merging organizations into one such newly-combined system.
Overview
The process of combining two or more organizations into a single organization involves several organizational systems, such as people, resources and tasks . The process of combining these systems is known as 'integration'.Integration fits within an organizational life-cycle or specific business mergers & acquisitions cycle where businesses buy, integrate then dispose of other businesses:
- Definition of vision & strategyStrategic planningStrategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues...
- Selection of growth method: organic vs inorganic
- Target identification
- Pre-deal evaluation & due diligenceDue diligence"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
- Negotiation & deal completion
- Post-merger integration
- Ongoing improvement
- Disposal
See also
- Mergers & acquisitions
- Business acquisitionBusiness acquisitionBusiness acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but refers more strictly to combining all of the interests of both companies in to a stronger single company...
- Program managementProgram managementProgram management or programme management is the process of managing several related projects, often with the intention of improving an organization's performance...
- Project managementProject managementProject management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
- Change managementChange managementChange management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment....
- Corporate financeCorporate financeCorporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
- Management due diligenceManagement due diligenceManagement Due Diligence is the process of scientifically evaluating the executives who make up the senior management team prior to the close of a business deal that involves integrating the functions and cultures of two or more companies...