Mergers and acquisitions (M&A) in the building supply sector can be a game-changer—unlocking growth, expanding geographic reach, streamlining operations, and boosting market share. But success doesn’t stop at closing the deal.
The real test lies in execution and integration—and the best way to stay on track is by using Key Performance Indicators (KPIs) to monitor progress, spot red flags early, and ensure you’re delivering on the deal’s strategic promise.
Here’s how to use KPIs effectively to monitor M&A in building supply businesses.
Why KPIs Matter in Post-Merger Integration
M&A is not just a financial transaction—it’s an operational transformation. KPIs provide leadership with visibility into whether the integration is working, where issues are arising, and how value is being realized.
Without KPIs, you’re flying blind. With them, you’re steering with purpose.
Key KPI Categories to Track During M&A
✅ 1. Financial Performance KPIs
These measure whether the combined entity is achieving the revenue and cost synergies promised in the deal.
Track:
Revenue growth (vs. pre-merger baseline)
Gross margin performance
Operating expenses (OpEx) as % of sales
Synergy realization rate (cost savings, shared services, etc.)
EBITDA margin improvement
Why it matters:
If financial goals aren’t being met, dig deeper—are customer losses, integration delays, or cost overruns to blame?
✅ 2. Customer Retention & Satisfaction KPIs
Customer churn is a common risk post-M&A. Tracking customer sentiment and retention helps safeguard revenue.
Track:
Customer retention rate
Net Promoter Score (NPS)
Order fulfillment accuracy and lead time
Customer complaint volume or escalation rate
Why it matters:
Disruptions in service, pricing, or communication can drive contractors to competitors if not addressed quickly.
✅ 3. Operational Efficiency KPIs
These show how well systems, teams, and facilities are integrating and functioning.
Track:
Order-to-fulfillment cycle time
Inventory turnover rate
Backorder rate
Delivery performance (on-time in full)
Warehouse or fleet utilization
Why it matters:
Operational hiccups can erode profit and damage customer trust. These KPIs highlight process inefficiencies that need attention.
✅ 4. Employee Engagement & Retention KPIs
Your people are the backbone of your success—and culture clash is a major M&A risk.
Track:
Employee turnover (especially key talent)
Employee satisfaction or engagement surveys
Training completion rate (for new systems or processes)
HR case volume or morale indicators
Why it matters:
A disengaged workforce leads to lower productivity, service issues, and slower integration. Keep a pulse on team health.
✅ 5. Integration Progress KPIs
Track how well the merger integration itself is proceeding.
Track:
% of integration milestones completed on schedule
System integration progress (ERP, CRM, inventory platforms)
Brand and marketing alignment readiness
Policy/process standardization rate
Why it matters:
The longer integration drags on, the greater the risk of operational and cultural misalignment.
Best Practices for KPI Monitoring in M&A
🛠️ 1. Set a KPI Dashboard Early
Establish your post-merger scorecard during due diligence or before Day 1 of integration.
🛠️ 2. Customize KPIs to the Deal’s Strategic Goals
Each merger is unique—track what matters most to the value drivers of the specific transaction.
🛠️ 3. Assign Owners for Each KPI
Ensure accountability by assigning leaders to monitor and act on specific metrics.
🛠️ 4. Hold Weekly or Monthly Integration Reviews
Create a cadence of KPI review meetings to keep progress transparent and actions agile.
🛠️ 5. Communicate KPIs Across Teams
Transparency helps align departments and boost buy-in—especially when progress is shared across both legacy organizations.
Conclusion: KPIs Turn M&A Strategy Into Measurable Success
M&A in the building supply industry is filled with opportunity—but also operational complexity. By using the right KPIs to monitor financial performance, customer experience, operational efficiency, employee engagement, and integration milestones, you turn your post-merger vision into real-world results.
Remember: What gets measured gets managed—and what gets managed gets improved.
