The PMI market will represent a growing percentage of the deal value over the next 2-3 years:
- Transaction implementation projects will continue to remain high-risk. This is due to the fact that M&A decisions are competitive decisions taken by players using knowledge and methodologies to go for more complex deals.
- Because of the funding issue, private equities and financial investors will increasingly compete on the quality of their post-deal plan. This should have a positive impact on the PMI-related market size.
On the other hand, the standardisation of the M&A and PMI processes will continue:
It enables to limit risk, accelerate implementation pace and help management to focus on key tactical or strategic issues.
This "factory" trend will reduce PMI costs for "serial-acquirers", and commoditise part of the PMI knowledge.
Demand will evolve in favor of more value-added post-merger integration services: PMI project managers need more support on how to optimise transaction-related projects and less on how to secure post-deal implementation regarding well-known topics.This is reinforced by the current perception that PMI techniques have reached a sort of plateau.