PMI Factory ®

The Next Level of Service Integration for Mergers and Acquisitions Projects
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PMI Factory is an Innovative Firm, Building on the Following Assessment of the M&A and Post Merger Integration Markets:

 

M&A. The M&A market downturn is strong and will have an impact on some fundamentals of the business.

  • The slowdown observed since August 07 will continue to have an impact of the overall M&A activity at least until 2008 year-end.
  • Strategic buyers and cash-rich investors will take a leading role in the coming months. The PE industry may come to the conclusion that a consolidation is required.
 
This slowdown is however partly offset by strong underlying business rationale for deal-making: 
  • Some major deals announced by cash-rich firms (Microsoft bid for Yahoo!)
  • The growth of new M&A players (Asia, Russia, Middle-East) building on strong domestic growth rates
  • The emergence of new business drivers (environmental issues, energy, ...).

 

 

Half of the M&A market volume is in Europe, where the banking sector has been less jeopardised until now.

 

Post merger integration. 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 and enable 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.

Innovation. 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.

     

    Last update 06.27.2008