The logistics sector has increased the number of mergers and acquisitions in recent years. The reasons for this vary:
- During the coronavirus pandemic, many consumers have discovered online retail for themselves.
- As a result of the pandemic, large global logistics companies and carriers were also able to achieve extremely high profit margins, especially in the maritime sector. This has whetted the appetite for horizontal vertical expansion - including among PE investors.
- On the other hand, some smaller companies were unwilling to turn down the purchase price on offer - especially if they were unable to participate in this market development.
- The energy crisis has caused transportation and freight costs to skyrocket.
- Political requirements for climate protection or the Supply Chain Duty of Care Act have increased the pressure to innovate.
- Investments in logistics companies are an instrument for stabilizing increasingly fragile supply chains.
- However, many M&A transactions fail during the integration phase at the latest. According to studies, this applies to 60 to 70 percent of projects. This makes it all the more important to prepare the post-merger integration thoroughly.
In practice, the following procedure has proven itself:
1. Identify the people involved in both companies.
Information is the be-all and end-all in company mergers, but in addition to figures, data and facts, there is often also information that cannot be found in the data room or in the documents provided. These can only be obtained through conversations with employees and members of management who are informed and authorized about the merger. These people should be identified as early as possible.
2. Analyze the operational key figures of both companies.
The key figures provided in the data room must be made comparable at divisional and company level. The focus here - especially for comparable units - is on productivity. This is because it serves as the basis for integration decisions.
3. Research soft facts about both logistics service providers.
Soft facts are important points of reference for understanding a corporate culture. In addition to the conversations mentioned above, websites such as
- websites and
- social media
are important sources of information when researching soft facts, especially the latter. As most mergers are basically acquisitions, it is important that the party to be acquired is absolutely neutral.
4. Compare corporate cultures and value systems.
The importance of different cultures is often underestimated, especially in global takeovers. This is where a comparison of
- visions can help,
- Hierarchien und
- Führungsstilen.
The culture in which a company operates, possibly also the religious environment, must also be considered.
5. Analyze the customer structures and service portfolios.
Often only the pure key figures and the balance sheet are evaluated. However, future growth and success also depend on the acceptance of the new company on the market. Questions about customer structures - are they key accounts or transactional customers? - and the services - are they identical or complementary? - can and should be analyzed in advance.
6. Identify potential conflicts.
The compilation of the most important soft facts, the comparison of the respective corporate cultures and the analysis of customer structures and service portfolios - these are the foundations for a central element in the development of an integration strategy: the identification of potential conflicts. This allows conflicts and other difficult situations during the PMI process to be completely or partially avoided and - since solutions can be worked out in advance - better managed if necessary.
7. Compare the operational systems, structures and processes.
Because of their history, companies usually have different operational systems - different transport management systems. These have an influence on the processes and structures of the respective companies, for example with regard to the degree to which they are centralized or decentralized. It is therefore important to compare the respective systems when preparing for company integration.
8. Identify potential synergies and complementary success factors.
Complementary success factors that can trigger synergy effects should also be identified before post-merger integration. After all, a merger is only successful if the new structures and processes continue to support these factors. This makes this analysis important: it may influence the target structure to be developed.
9. Define the preliminary target structure after the merger.
Based on the given framework conditions and taking into account the findings from points six and seven, the target structure of the company after the merger is now created. New findings and information during the PMI process can still lead to corrections in one place or another.
It is important here to create a process plan for the integration project with clearly defined steps and a - realistic - schedule. The implementation team must also be mandated. This team should reflect all hierarchical levels, specialist departments and employee representatives from both companies.
Conclusion: How to prepare for a PMI in the transport and logistics industry
The most important factors of a successful post-merger integration are:
- a reliable set of framework conditions such as key operating figures, balance sheets, but also customer structures and service portfolios,
- a thorough understanding of the respective corporate cultures and company values and
- a clear idea of the target structure that takes into account operational systems, potential synergies and possible conflicts.
The most important information sources are
- the data room and other available documents,
- personal discussions with persons involved in the merger and
- the websites and social media activities.
