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Post-Merger Integration in India & Ireland   

Industry & Scope :

  • Product, project & service business for Security, Fire Safety & Building Automation in India.
  • Merger of the already existing respective local division of the acquirer, i.e. a globally active technology group, with the leading local supplier in India.
  • Included R&D and manufacturing for security products at field as well as at station level.

Role / Function :

  • Integration Manager, being responsible for the entire integration in India as well as for the subsidiaries.

Business Context :

  • The transaction was structurally complex, since it combined a carve-out with a reverse take-over and a legal set-up as a joint venture in combination with an earn-out scheme.
  • The Post-Merger Integration was even more demanding as the different sites
    to be integrated were spread across entire India :
     - main office and R&D of acquired company in Chennai,
     - main office of acquirer in Mumbai,
     - 10 branch offices,
     - factory in Pondicherry.
  • Also, the foreign subsidiaries of the acquired company had to be integrated
    to a different extend in :
    - Ireland & UK
    - Singapore
    into the respective country organizations of the acquirer.
  • Significant differences in corporate & national culture as well as initially limited support by some relevant stakeholders.

Actions :

  • Setting-up and leading the PMI organization with more than 40 workstreams, actively supporting the workstream leaders, as well as leading some crucial workstreams personally.
  • Paying a lot of time and effort to the cultural integration and the communication efforts
    to reach-out to all employees across India and the subsidiaries, as well as to ensure the buy-in of all the involved parties.
  • To preserve the unique strengths of the acquired company, a 'light integration' approach was implemented, requiring additional coordination efforts with the headquarter organization of the acquirer.
  • To manage the high complexity, a stringent risk management and mitigation program
    was implemented.

Outcome :

  • Already in the first year of operation the financial results in terms of revenue and profitability were overachieved.
  • The integration itself was also completed successfully with minor deviations from the original plan only.
  • After some initial difficulties, the acquisition was well supported by all stakeholders.