Companies which undertake PMI projects generally encounter four highly challenging issues arising from the acquired business: a loose grip on functional units, deteriorating profitability, ill-defined corporate culture and difficult integration of management. To address these issues, we follow three interrelated steps aimed at making the local target a manageable company.

The bridge phase aims to define an integration platform between two firms. As a rule, such a platform consists of few but highly critical organizational issues (for example, the firm's value chain productivity and accountability in top management). Promptly addressing these issues ensures successful integration into the investor's business model. Our approach addresses wealth drivers and lists the areas, which require urgent action by the new owner for a profitable integration of the new firm into the organization.

The 90-day integration program covers the period when integration is being executed. We set a limit of 90 days for this process as PMI is a transition period that allows operational integration and improvement between the investor and the target. Our process spans all functional units and addresses issues from the integration platform inside each unit. We help the client firm get solid grips with all the mechanics of activity management inside functions from procurement to sales. This is complemented by implementation of new reporting methods, revised management approaches and the investor's culture of doing business. We conduct regular task progress reviews and work with the top management of the acquired company to secure efficient implementation of the PMI program.

Organizational Redesign and Reconstruction implements change in the structure of the acquired organization. At this stage we help the client to define the key elements of a new organizational model, functional responsibilities and the level of accountability required for result achievement. As a rule, the newly acquired company is in need of new functional leaders, who must create more productive unit performance. We help the client exert solid operational control over the work done by functional units and their components. Having completed the process, the refined organization is ready to change the course of its strategic direction, conduct growth initiatives and begin creating value for the strategic investor.

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