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Be careful when you are using the terms "mufflers" and "exhaust system". If you want to use the M5 exhaust systems, standard or competition, the location of the mufflers is not the same. Luckily, the M5 mufflers are much smaller than the stock 550i ones so if you have a competent muffler shop they can make the adjustment or you can make the openings in your stock diffuser larger.
I went the conversion route on the rear bumper with the M5 diffuser and bumper adapter to keep my convenience features intact. For the exhaust, I had my shop cut stock exhaust pipes just before they get squished and use an expander to get to 3", then weld in a pair of M5 mufflers I picked up from another forum member. I like it because it gave me the V8 rumble I wanted and the vacuum lines are still connected so quiet when I need to get out of the neighborhood and nice rumble when you roll into it on an on ramp. No drone at any speed and I have gotten compliments from everyone that rode with me before and after the upgrade. Just got my exhaustmeister so once I install that, I can have obnoxious on demand.
There are several posts that already cover this topic in detail and a lot of great people on this forum who will help. I just got my 550i xdrive and there are plenty of people that have helped me spend my money on making my ride the OEM+ that suits my personal tastes.
Happy motoring!
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