Chapter 10. M&A Postmerger Integration
After a transaction closes, integration is on the agenda. The category into which the acquirer falls will influence considerably the extent of integration and the pace at which it takes place. Financial buyers—those who buy a business for eventual resale—tend not to integrate the acquired business into another entity. Rather than manage the business, they are inclined to monitor the effectiveness of current management and intervene only if there is a significant and sustained deviation between actual and projected performance. In contrast, strategic buyers want to make a profit by managing the acquired business for an extended period, either as a separate subsidiary in a holding company or by merging it into ...
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