Post Merger Transformation (PMT)

As domestic markets mature, the importance of M&A as a growth strategy increases. However, we often see companies that fail to produce results because, despite performing mergers, they are not generating the integration synergies they expected.
Through our Post Merger Transformation (PMT) service, which provides companies with comprehensive support from formulating integration policy to generating synergies through transformation, we work with clients to maximize the impact of mergers.

As the domestic markets matures and industries reorganize rapidly, the number of M&A deals being done in Japan continues to rise. As companies can adequately anticipate that their competitors will make proactive moves in the M&A market in line with this trend, generating greater integration synergies will become a key point of competitive differentiation. For this reason, it is no exaggeration to say that a Post Merger Transformation (PMT) process that melds the organizations, operations, systems and cultures of the acquirer and acquiree in a merger deal can be the difference between success and failure.

*The importance of PMI in the M&A market is also backed up by studies we have performed ourselves. See here for more detail.

We often see cases in Japan where the Japan-specific management style and culture of “overfocusing on aligning both companies and excessively respecting the views of people on the ground gets in the way of decisive decision making” ends up being a bottleneck for post-merger transformation. In other words, the Japanese style and culture of careful decision making processes and individual-dependent operations makes it difficult to achieve rapid change in a short span of time. As a result, “integrating,” which should come at a much earlier stage, ends up being the goal, rather than “generating synergy.”

PMI at ABeam Consulting goes beyond the bounds of typical merger planning to focus on clarifying the post-integration outcomes to be expected and the vision companies are ultimately aiming for, and formulating strategies to achieve this. ABeam formulates integration plans with eyes on the company’s ultimate vision, incorporating concrete action plans for achieving corporate transformation aimed at achieving that.
Equally important is putting in place systems that facilitate quick and effective decision making. Through planning that accelerates the decision making process and goes so far as to improve communication with stakeholders, including external stakeholders, such plans increase the driving force of planning.

Through a framework of Post Merger Transformation (PMT), ABeam Consulting advances not only the “integration of functions related to maintaining companies” that is done in typical PMI processes, but also subsequent structural transformation.

A wide range of stakeholders contribute to PMI, so companies need to get alignment among management teams across buyer, seller and target company, and foster momentum for transformation involving employees who execute the various PMI measures.

The support offered by ABeam’s Integration Management Office (IMO) goes beyond project management to support execution of key post-acquisition events and themes such as formulating basic policies needed for PMI and formulating policies for employee communications and governance.
We also provide expert support across every phase of the process from PMI through to the transformations that come after that, as relates to the important themes involved in realizing the operational integrations and synergies that arise in both management and operational domains.

ABeam provides deeply embedded support to subcommittees from the standpoint of an IMO, comprehensively supporting client PMI. We drive projects forward, avoiding delays by identifying early on tasks that span multiple subcommittees or for which responsible personnel is unclear and, in some cases, providing support by executing those tasks ourselves as an IMO. We can also provide focused support by ABeam experts to specific subcommittees in response to client needs or the state of the project.