CIMA F3 places strong emphasis on post-merger integration (PMI) as a critical determinant of whether expected synergies from an acquisition are actually realised. The syllabus highlights that although financial and operational synergies may appear attractive at the appraisal stage, the effective integration of systems, processes and controls is often the greatest practical challenge after completion.

In this scenario, Company A and Company B operate in the same industry and at the same level of the supply chain (horizontal integration), and the anticipated synergies relate to management cost savings, warehousing efficiencies and bulk purchasing economies. For these synergies to be achieved, Company A must be able to accurately measure performance, control costs, manage inventory, and coordinate purchasing decisions across the enlarged group. CIMA F3 study guidance stresses that this requires a clear understanding of the acquired company’s management information system (MIS).

Option B is therefore the most important issue. Without understanding Company B’s MIS, Company A will struggle to:

Identify genuine cost-saving opportunities,

Integrate inventory and warehousing systems,

Align purchasing data to exploit economies of scale,

Monitor operational performance consistently post-acquisition.

The other options, while relevant, are secondary:

A (removing surplus staff) is a consequence of integration, not the primary enabling issue.

C (customer discussions) is less critical here because both firms already operate in the same wholesale market with similar customers.

D is not a strategic financial or operational issue under CIMA F3 and is therefore irrelevant.

CIMA F3 consistently emphasises that information systems integration underpins successful post-merger synergy realisation, making option B the correct answer.