What is a merger?
DefinitionA merger takes place after one company (the acquirer) has taken ownership of another company (the target). In a merger, the two companies are being integrated with each other. We call this merger integration.
Merger integration can take different shapes as shown in the following figure:
What is being integrated?As said before, the target and the acquiring company are being integrated. The integration covers all levels of a company, from the strategy, the organization, the processes run in the companies down to all resources, employees, machines, buidlings etc.
Based on the integration approach, the merged organization can be similar to the acquiring company or the target; or it can be a completely new organization created from the pieces of the acquiring company and the target.
Based on multiple factors, you can choose the right approach for post merger integration.
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(c) Dr. Karl Popp 2015