Post-merger integration requires designing the target operating model before the integration begins — defining the accountability structure, decision rights, capability framework and governance model that the combined entity needs to capture the commercial rationale for the deal.
Post-merger integration is one of the highest-risk operating model challenges a business can face. Most mergers fail to deliver their intended value, and the most common reason is poor integration.
When two organisations merge, the combined entity needs a new operating model that captures the commercial rationale for the deal while managing the cultural and operational risks of combining two organisations with different ways of working.
Most integration failures happen because the integration operating model is not designed before the integration begins. Instead, the combined entity inherits the operating models of both predecessor organisations and tries to reconcile them after the fact.
Loop Consulting Group designs the target operating model before the integration begins — defining the accountability structure, decision rights, capability framework and governance model the combined entity needs to execute its strategy.
Day 1 operating model. The integration needs a Day 1 operating model — the minimum viable structure that allows the combined entity to operate effectively from the first day of integration.
Integration sequencing. The integration needs to be sequenced to capture the commercial rationale as quickly as possible while managing the operational and cultural risks.
Cultural integration. The accountability structure and governance model of the combined entity will shape the culture that emerges from the integration. Designing the operating model with cultural integration in mind is essential for capturing the full value of the deal.
Contact Loop Consulting Group at [loopbc.com.au](https://www.loopbc.com.au) to discuss post-merger integration support.
Loop Consulting Group works with Australian businesses scaling from $5M to $50M. If this question reflects a challenge you're facing, let's talk.