1. Management of Post Merger Integration Projects
Global network of innovation
Management of Post Merger Integration Projects

2. Failure Rates of Mergers: Overview empirical studies
Global network
Failure Rates of Mergers: Overview empirical studies
of innovation
General Analysis
Specific Analysis
100%
Consulting
Science
83%
85%
79%
80%
78,5%
72%
75%
71%
69%
61%
63%
62%
60%
56%
50%
47%
40%
40%
20%
Mercer
Bain
McK
Porter
Harbison
Europ.
Cross
Merger
Bank
1996
1997
1987
1988
Silver
IMA
Deals
Border
Cross
of Equals
MoE
Hayes
1984
2000
KPMG
Border
J.P. Morgan
IMA
1998
1998
IMA
1998
2000
2000

3. Problems and Reasons for Failure
Global network
Problems and Reasons for Failure
of innovation
Percent o f Respondents
Problems identified in Post-Merger
Integration
Insufficient communication
58%
Financial/ synergy expectations
unrealistic or unclear
47%
Compromises in new organization
47%
structure
„Master Plan“ missing
37%
Missing momentum
37%
Lack of top management commitment
32%
Unclear strategic concept
26%
Missing pace of project
26%
IT i ssues adressed too late
21%
Source: A.T. Kearney

4. Studies show: of innovation PMI is the weak point in M&A management
Global network
PMI is the weak point in M&A management
Main problem areas in M&A management*
Strategic
Transaction
Integration
Analysis
* Example from: Boston Consulting Group: Multiclient study

5. Integration Steps BUILD Global network of innovation KEY ACTIONS:
• Evaluation of organizational models and selection of the Future Mode of Operations
• Determination of the prime and supporting process model in the context of a superior process model
• Validation of existing processes and adjustment where necessary
• Determination of the concept for the implementation of the process model (incl. Quick Wins) • Refinement and agreement on roles, responsibilities and competencies (incl. P&L)
• Development of action plan for the set up of structural elements with regards to portfolio, employees, management of employees and ressources
• Definition and development of the target agreement system and the respective controlling requirements

6. Integration Steps BUILD Global network of innovation
KEY ACTIONS (cont.):
• Mission critical: Detailled project plan and dedicated project organization • Implementation of work and project teams:
- strategic:
Countries, Production Sites, Brand- and Productportfolio
- operational: R&D, Delivery, Logistics
- central:
Finance & Accounting, IT, Law and HR
• Development of an internal and external communication concept/plan
• Define milestone and benchmarks to ensure and to proof the realisation of synergies and to ensure the compliance with the transformation plan

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