Post Merger Integration (PMI) - Corporate / M&A

Germany

Publication · 14 Mar 2022

Post-Merger Integration

4 min read

Mergers & acquisitions help companies to achieve their strategic and economic objectives. Acquisitions, mergers and joint ventures generally result in broader market coverage, higher sales and additional expertise. In many cases, however, it only becomes apparent at the end of the acquisition process what the deal can actually deliver in terms of the company’s strategy and how transformational it will ultimately be.

Successful closing is followed by the post-merger integration (PMI) phase – which often poses significant challenges. Is there a good operational fit between the partners? What is the best way to integrate the target company, with its unique features and workforce, into the existing business and its various processes? 

Right from day one of your M&A project, the lawyers in the CMS Corporate/M&A team help you stay on track. As your partner during the post-merger integration process, our task is to combine two previously independent companies into a single unit, not only with regard to corporate and contract law but also in terms of organisation and operations. This includes successfully meshing the different structures of the acquirer and the target company. 

Corporate expertise across the entire M&A process

A transaction process generally takes several months. For a variety of reasons, it can also sometimes develop a momentum of its own. It is good practice to follow a standard sequence in M&A transactions from structuring through signing to closing, with experience of corporate law being particularly important. 

Careful preparation by experienced corporate experts ensures that the relevant value drivers of an M&A transaction are recognised early on, while also identifying the pitfalls that may emerge in the course of any deal. This includes proactively considering all PMI issues that could or will arise after closing.

Corporate law plays an important role in post-merger integration, particularly when reorganising business units, streamlining internal processes in the context of existing corporate structures, making the best possible use of available resources and ultimately strategically (re)aligning the business.

Varying degrees of integration – based on experience and insight 

Depending on the commercial and corporate rationale behind an M&A transaction, post-merger integration typically spans a large number of separate areas that require different degrees of integration and different timetables. 

A common feature of all post-merger integration processes is that even in routine cases, precision planning at an early stage is essential for integration to be a success. You can rely on the expert members of the CMS Corporate/M&A team to support you here at all times.

Post-merger integration checklist

From a corporate law viewpoint, successful post-merger integration involves the following issues:

• Selecting the best possible structure for acquisition and integration 
• Adapting group structures 
• Dealing with existing control and profit transfer agreements 
• Harmonising corporate governance 
• Merging compliance organisations
• Support for process management

Your partner across all phases of the transaction 

Mergers & acquisitions are powerful tools for delivering growth and consolidating market positions. The CMS Corporate/M&A lawyers have many years of proven experience gained in numerous national and international M&A transactions. Our top priority is to provide our clients with the best possible support around achieving their business objectives through a broad portfolio of legal and tax services. We deliver efficient, interdisciplinary one-stop assistance throughout every phase of your M&A projects, including post-merger integration.

Looking for qualified advisors not just for the transaction process itself, but also with experience of post-merger integration? Please feel free to get in touch with our lawyers for PMI Corporate at any time.