The priority quartet of post merger integration : case study: how Danaher Corp. uses the Danaher Business System to integrate and optimize newly acquired companies

Abstract

In times of economical recession all measures need to be taken to end up as a winner! Some companies don't just plan tu survive the economical crisis, but use it as an opportunity to grow. As M&A are considered the fastest was towards growth, many companies choose it, thus the chance to win or loose is arount fifty-fifty. The first part of this paper will briefly discuss questions like: What are M&As? Why grow? How far can we grow before falling apart? Is there a conglomerate discount? The main question refers to the integration process: What is the best strategy to succeed? To answer this question, I prepare a model, and name it Priority Quartet or "4P". The 4 P's stand for the four most important processes, which need to be integrated after two companies are combined: Personnel, Production & Placement, Procurement, and Promotion & Sales. For better exemplification we will take a look at one of the most successful acquirers of our days, and their method to integrate and optimize acquired companies: Danaher Corporate and the Danaher Business System (DBS). This business system includes guidelines for all company specific activities, an it is implemented at the acquired companies immediately after the merger. It seems adaptable to all kinds of business activities and theoretically all around the world.