Mergers and acquisition (M&A) transactions, like other large-scale corporate change, are an excellent opportunity to set a new course and drive sustained economic value for your organization. Every business is different and so too is every M&A transaction. Unfortunately, too many fall short of the expectations set out for them. Our research and experience show that despite the best intentions, carefully developed strategy doesn’t guarantee you’ll realize the value you sought out to achieve. Our cross-functional teams understand the importance of managing the transition so that your post-deal goals are realized.
When it comes to doing a deal right and realizing sustainable and long term value, the period from deal announcement through Day One is only the beginning. Organizations should focus on the hand-off between their deals and integration teams by implementing an Integration Management Office (IMO) to keep the integration on course. This ensures integration across the combined enterprise.
Conduct due diligence around HR, IT and operations
Often, even the most carefully developed synergy models built during a transaction’s due diligence phase won’t translate into value during an integration. During the evaluation and due diligence stages, you need to focus on the detailed people, process and technology considerations and assumptions that will drive synergies after deal close. We’ll help you understand where opportunities for value creation exist, and what obstacles could stand in your way so that you have the information you need to make informed decisions about your newly combined business.
Although an initial synergy analysis is generally performed as part of your financial modeling during the early stages of assessment, as assumptions get refined, you may lose sight of why you set out to do the deal. Typically, the synergies most deals seek to achieve are categorized into three common areas: revenue and market growth, cost reduction and capital optimization. To help make sure you achieve shareholder value, we’ll apply our proprietary framework that follows a sequence of coordinated steps to identify, prioritize, execute, and track the drivers of value throughout the integration to achieve the desired outcomes.
Plan for integration
Integration is a highly tactical effort. But the tactics need to be implemented in ways that capture and protect the value of the deal. Rapidly converting acquisition strategy into integration strategy is critically important. We’ll work with you to develop an integration roadmap and set of guiding principles to be used to pinpoint and execute a clear integration strategy.
Execute the integration
The market will reward or punish shareholders of the combined company depending on how well company management succeeds at achieving the deal objectives. So it’s imperative that synergies get realized, deal value is captured, and the resulting performance is communicated to all those with a stake in the outcome. To execute an integration successfully, you’ll need clear vision, strong leadership, a detailed plan and disciplined program management. We’ll help make sure you have these success factors in place to drive value out of the integration execution.
Keeping track of synergy progress over the course of an integration helps keep employees focused on the right activities at the right times. While responsibility for delivering certain synergies may rest with specific business units and functions, a centralized process and set of tools for monitoring, tracking, and reporting synergies is essential to keep the combined company on task and delivering measurable results. We’ll work with you to apply a disciplined approach to capture deal value, achieve early wins, build momentum and instill confidence among your stakeholders.