Post-Merger Integration: KPIs to Track in the First 100 Days 

Picture this: You’ve closed the deal, the ink dries on the paper, and there’s a buzz of excitement spreading around the office. Now what? 

Without a structured post-merger integration process that ensures proper tracking and evaluation of the M&A deal, this excitement can quickly change into confusion – which can, in turn, snowball into a series of other issues. 

Delays, inflated costs, cultural clashes, and missed opportunities for synergy can all arise if a company fails to implement robust tracking methods. In fact, studies show that over 70 percent of M&A deals fail to meet their anticipated value – and all too often, poor integration planning and execution are to blame. 

While dealmaking itself might be more exciting, the post-merger integration process is where the real work – and eventual success – truly begins. Especially for companies with lean teams or strained resources, having a solid integration plan helps chart the best path forward from day one and empowers organizations to get ahead of potential issues before they arise. 

As experts in helping companies achieve post-merger integration success and efficiency, we’ve outlined some of the most important reasons why tracking early-stage deal success is so important, plus top KPIs to consider. 

Why are the first 100 days of an M&A deal so important to track? 

The first 100 days of an M&A deal are so critical because they lay the foundation for long-term success. However, this early-stage period also means that the post-merger integration process is the most vulnerable to threats or potential missteps.  

That’s why identifying and tracking the right KPIs is so essential, as doing so will provide real-time insights into the integration process, highlight potential issues early on, and ensure that the deal is on course to achieve its strategic goals. 

For lower to middle-market organizations that have limited resources and margins, this focused approach is essential to maximize deal value and avoid costly setbacks. For more information on the top types of post-merger integration challenges and how to avoid them, head to our blog: Post-Merger Integration: Challenges & Tips to Avoid.

Top Types of KPIs to Track During the First 100 Days of an M&A Deal 

1. Employee, talent, and workforce
2. Customer and market
3. Operational efficiency
4. Financial performance
5. Technology and systems performance
6. Cultural and organizational shifts
7. Regulatory compliance and risk

1. Post-merger integration KPIs to track employee ongoings  

Tracking talent, workforce, and employee-related KPIs is essential to understanding employee morale and stability during the post-merger integration process. For example, monitoring employee retention rates can reveal whether staff are staying or leaving, which can be helpful in identifying cultural misalignment. 

By conducting surveys to gather employee engagement metrics and scores, organizations can assess how well employees are adapting to the new normal and make changes as necessary. 

Talent and workforce KPIs to track for early-stage M&A deal success: 

• Employee Retention Rate: Percentage of employees retained over the first 100 days. 

• Employee Engagement: Results from regular pulse surveys and engagement scores. 

2. Post-merger integration KPIs to track customer and market ongoings 

Paying close attention to customer retention rates, Net Promoter Scores (NPS), and client feedback helps ensure that customer satisfaction levels remain where they should be – and provide insights into how well the company is maintaining its client base and market positioning during the post-merger period. 

Additionally, tracking market share can also reveal if the company’s competitive standing is improving. 

Customer and market KPIs to track for early-stage M&A deal success: 

• Customer Retention and Satisfaction: Customer churn rate, NPS scores, and client satisfaction surveys. 

• Market Share: Changes in market position compared to competitors. 

3. Post-merger integration KPIs to track operational efficiency 

Establishing synergy goals and setting clear benchmarks for the first 100 days of an M&A deal is key. To ensure these goals can be realized and establish post-merger operational efficiency, it’s essential to understand if the companies being merged are actually able to streamline their processes. 

By measuring cost savings and revenue increases that may have resulted from an identified synergy (for example, a supply chain integration or operational enhancement), companies can best track whether or not these efficiency goals are being met. 

Operational KPIs to track for early-stage M&A deal success: 

• Operational Synergies Realized: Percentage of projected cost savings and revenue synergies achieved. 

• Productivity Metrics: Output per employee and departmental efficiency metrics. 

4. Post-merger integration KPIs to track financial performance 

Financial performance KPIs are critical for determining if the companies being merged are meeting their revenue and profitability targets. By monitoring revenue, profit margins, cost reductions, and cash flow stability, organizations can best paint a picture of their post-merger financial health. 

Adjusting financial KPIs to reflect combined operations ensures accurate comparisons and identifies any areas that may need to be reworked.  

Financial performance KPIs to track for early-stage M&A deal success: 

• Revenue and Profit Margins: Comparison to pre-merger projections. 

• Cost Reductions and Savings: Total cost savings realized post-merger. 

• Cash Flow Stability: Consistency in cash flow and liquidity ratios. 

5. Post-merger integration KPIs to track technology and systems performance 

Systems integration is one of the most complex parts of the post-merger process. By monitoring the timeline and success of any ERP integrations, CRMs, or other critical platforms, organizations can work to ensure smooth operations. Additionally, keeping an eye on system downtime and errors is crucial to preventing disruptions. 

Technology and systems performance KPIs to track for early-stage M&A deal success: 

• IT System Integration Progress: Percentage completion of system integrations. 

• System Downtime and Errors: Number of system outages and error incidents. 

6. Post-merger integration KPIs to track cultural and organizational shifts 

Cultural and organizational KPIs focus on how well the teams are blending and aligning post-merger. By conducting surveys and utilizing feedback to assess cultural integration scores, companies can gain much-needed insights into employee sentiment.

Additionally, tracking leadership alignment also ensures that management teams are collaborating effectively and driving the integration forward.  

Cultural and organizational KPIs to track for early-stage M&A deal success: 

• Cultural Integration Scores: Survey results on employee sentiment and cultural alignment. 

• Leadership Alignment: Frequency of cross-organizational leadership meetings and collaboration scores. 

7. Post-merger integration KPIs to track regulatory compliance and risk 

Compliance and risk KPIs help organizations stay on top of regulatory requirements and identify potential issues early. Monitoring adherence to industry regulations and legal obligations ensures the company remains compliant. Tracking risk incidents, such as compliance breaches or security risks, can highlight areas needing immediate attention.  

For best results, consider conducting a comprehensive post-merger risk assessment within the first 60 days. 

Regulatory compliance and risk KPIs to track for early-stage M&A deal success: 

• Regulatory Compliance: Number of completed compliance audits and percentage of compliance gaps resolved. 

• Risk Incidents: Number of compliance breaches, security incidents, and legal issues identified. 

Post-merger Integration: Benefits of Outsourcing

Final Thoughts on the Top KPIs to Track During the First 100 Days  

The first 100 days of the post-merger integration process are what sets the tone for long-term deal success – or lack thereof. Tracking the right KPIs offers invaluable insights, helping your organization stay on course and realize the full value of your M&A deal.  

But post-merger integration is complex, and even seasoned teams can overlook critical elements. That’s where external expertise comes in.