The stock has changed hands, and the payment for the acquisition is complete. It feels like a major task has finally been wrapped up. However, the very next day, the employees are working, customers are waiting for their products, and payments to suppliers are still due.
Even if an acquisition increases group sales, that alone does not mean the synergies expected at the time of the acquisition have been realized. Cross-selling customers requires people who understand and can pitch the products. Consolidating administrative operations also takes effort to transfer the systems.
PMI is an initiative aimed at post-merger integration.Explanation by the Small and Medium Enterprise AgencyFurthermore, we position it as a process to achieve the objectives of M&A and enhance the effects of integration.The task of acquiring a company through a contract and the task of achieving results together with that company must be designed with separate personnel and processes.
On the first day, prioritize "not stopping."
Immediately after an acquisition, the first things I want to confirm are not whether the management philosophy has been unified, but whether we can pay salaries and continue responding to customers. If the successor does not know about the payments and discounts that the former president decided alone, the company will grind to a halt.
Bank transactions, contracts, authorities, and cash flows confirmed during due diligence are handed over to the person in charge post-execution. While the necessary procedures vary depending on the legal form of the acquisition and the contracts, "documents are ready on the closing date" and "business operations can begin the next day" should be confirmed separately.
Here is an example plan based on the first 100 days. It is neither a statutory deadline nor a standard for completing all integration within 100 days.
| Target timeframe | Priority tasks | Example of a verifiable status |
|---|---|---|
| Before execution | Prepare the purpose of the acquisition, the person in charge, and the operation and explanation for the first day. | It is clear who decides what and who to account to. |
| One week from Day 1 | Continue payroll, payments, order acceptance, and delivery | obtain the necessary authority, funds, and contacts |
| The first 30 days | Understand employee and customer concerns and current status | You can see the people, deals, and ways of working you don't want to lose. |
| Until the 100th day | Execute priority measures and measure the results | I can explain the progress by person in charge and the differences between costs and effects. |
| After that | Continue uncompleted integration and growth initiatives | It will be handed over to the regular budget, meetings, and accountability structure. |
If the selling company's president stays on for a certain period, the handover should not end with them just "being available for consultation." We determine what needs to be handed over and by when, such as introductions to key clients, seasonal funding needs, exceptional pricing decisions, and operational decision-making criteria. If the business remains unable to operate without constantly asking the former president, the handover is not complete.
With the acquisition of 600 million yen, the person responsible for the integration was also evaluated.
In July 2024, fonfun announced the acquisition of all shares of Gluecode Communications.The acquisition cost of the stock is 600 million yen, and the total including DD expenses etc. is 601 million yen.is. In addition to the engineering organization, the buyer evaluates the recruitment and training systems, as well as the M&A and PMI experience of the management team.Acquisition disclosure dated July 30, 2024, pp. 1–4
What is useful here is that it explains not just counting people as mere numbers, but how they will contribute to recruitment, development, and post-acquisition management. However, this document describes the objectives and expectations at the time of the acquisition. It is not proof of successful integration or that profits increased as planned.
Even when executing PMI in-house, we first understand the acquired company's way of doing things. For example, through interviews with employees, we check whether customer service is concentrated on specific individuals or if there are administrative grievances. We reflect those results in staffing and handover plans. Rather than treating the mere fact of having conducted interviews as an outcome, we track subsequent changes.
Getting everything all at once can sometimes ruin the strengths you bought.
If you view PMI as the process of making the acquired company identical to your own, you will prioritize the wrong things. If you introduce multi-stage approvals to a company whose strength lies in quick decision-making on the front lines, responses to customers might become delayed. On the other hand, respecting autonomy does not mean you can leave the reporting of finances or serious incidents ambiguous.
First, we will categorize what to standardize quickly, what to keep for the time being, and what to determine through verification.
| Example of handling | target examples | Reason for decision |
|---|---|---|
| Get the controls ready early | cash flow, important decision-making, reports on accidents or legal violations | Identify issues that cannot be ignored as a group |
| Keep it as a strength | customer service, product branding, professional working methods | does not impair the value assessed at the time of acquisition |
| Try it before deciding | Standardization of sales methods, purchasing, systems, and personnel systems | Verify not only the effectiveness, but also the migration costs and the impact on the operations. |
This is not a fixed classification. For example, if there is a critical issue with the system, the priority goes up. Even a decision not to integrate will include a reason, figures to check, and a time for review. Keeping something is different from neglecting it.
When explaining things to employees, we also separate what has been decided from what is undecided. If you assert that salaries and working conditions will remain completely unchanged and then change them, you will lose their trust. If something is undecided, you must communicate what is being considered and when the next explanation will be given. In addition to creating opportunities for them to be heard, it is important that they can see how you respond after listening.
Do not count the synergy effect in "sales increased"
When measuring post-acquisition performance, we separate the impact of simply having one more company from the synergies created by the integration. The mere fact that group sales increased does not tell us whether the results justify the acquisition price.
For example, suppose that customer referrals are expected to generate 20 million yen in additional sales per year. Assuming a gross profit margin of 25%, the gross profit is 5 million yen. If proposal activities and training cost an additional 3 million yen, the contribution to profit, assuming all other conditions remain the same, is 2 million yen. The 20 million yen does not become profit as it is. This is a hypothetical calculation example, not the numbers from the actual case study mentioned earlier.
Expectations set prior to the acquisition will be managed for each initiative.
| expected effect | the numbers to actually track | Costs and side effects you don't want to overlook |
|---|---|---|
| Customer referrals | Number of proposals, orders received, additional gross profit | Sales man-hours, discounts, decrease in sales of existing products |
| joint purchasing | unit purchase price under the same quality and quantity conditions | increase in inventory, switching costs, instability of supply |
| Standardization of administrative operations | Processing time, closing days, required man-hours | migration costs, dual operation, operational burden on the front line |
| Maintaining human resources and technology | Status of critical operations and continuity of customer service | Resignation, work concentration on remaining staff |
Connecting the buyer with the successor
Negotiators may move on to the next deal once the acquisition is finalized. Before that happens, they hand over the acquisition objectives, evaluated strengths, remaining issues from due diligence, and promises made to the seller to those who will take charge of management.
PMI requires someone responsible for determining the overall picture, as well as persons in charge of advancing each task.SME Agency PMI Practice ToolAlso, we separate the current situation analysis, the plan with designated assignees and deadlines, and the integrated policy to be communicated to stakeholders. Rather than creating a large document, it is important that everyone understands unresolved tasks with the same content.
When deciding on the person in charge, we also confirm how many hours they can spend in addition to their regular duties and what decisions they are entrusted with. If a site manager is left with all of their existing duties while being put in charge of the integration, the work will not progress even if their name is on the plan. When using support personnel or external experts on the buyer's side, those costs are also factored into the post-acquisition budget.
When plans go off track after an acquisition, rather than immediately blaming a lack of effort on the acquired company's part, we review customer demand, the execution structure, the budget, and the initial assumptions. What is tested in PMI is not merely whether the other party was brought under control. It is whether the people and business evaluated at the time of the acquisition were protected while the planned results were transformed into actual work and figures.
This manuscript is a general explanation based on laws and regulations as of September 9, 2026. Please obtain advice on your individual circumstances before taking action.
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