ModalMinds

Next Generation M&A
The SIM™ Method Webinar
Contents/Agenda
The Problem with M&A
The Next Generation Approach: SIM™
Head – Deal Doctrine
Shoulders/Heart – Free Will &...
The Problem with M&A
The Merger & Acquisition failure rate continuously
averages 70%
Why the Traditional M&A Model struggl...
The Problem with M&A

Traditional Models still under-estimate the role
of “effective integration”
Financial/deal focus lea...
The Problem with M&A
These two (2) chasms are consistent barriers to
M&A success
Improper or incomplete drivers
Ignore the...
The Problem with M&A

Where are experienced practitioners falling short?
Core ingredients remain the same, but the
recipe ...
The Problem with M&A

Where are experienced practitioners falling short?
Core ingredients remain the same, but the
recipe ...
The Next Generation Approach

M&A success requires a modernized method
Strategic Integration Model™ addresses deal
executi...
The Problem with M&A - Summary

The Merger & Acquisition failure rate
continuously averages 70%
Traditional Models still u...
Contents/Agenda
The Problem with M&A
The Next Generation Approach: SIM™
Head – Deal Doctrine
Shoulders/Heart – Free Will &...
The Next Generation Approach

M&A success requires a modernized method
Strategic Integration Model™ addresses deal
executi...
The Next Generation Approach
Strategic Integration Model ™ - The Head
Function: Defines the doctrine or dogma of the deal
...
The Next Generation Approach
Strategic Integration Model ™ - The Shoulders/Heart
Function: Stage and scale adoption of sta...
The Next Generation Approach
Strategic Integration Model ™ - The Legs
Function: Physical and tactical execution of the str...
The Next Generation Approach - Summary

M&A success requires a modernized method
Strategic Integration Model™ addresses de...
Contents/Agenda
The Problem with M&A
The Next Generation Approach: SIM™
Head – Deal Doctrine
Shoulders/Heart – Free Will &...
Actions & Accelerators
Impacting Strategy and Structure
Pre-Close
Align corporate structure to strategy – Leader Adaptabil...
Actions & Accelerators

Obtaining and Tracking Adoption
Pre-Close
Leadership assessment, mid-level coverage
Cultural asses...
Actions & Accelerators
Facilitating Execution
Pre-Close
Ratify workstreams, scope, schedule and budget
Define Levels of Au...
The Next Generation Approach
Closing the gaps – prescriptive actions and accelerators
Level

Pre-Close

Post-Close

1 Deal...
EVENT DRIVEN TRANSFORMATION.
PROVEN LEADERS. MEASURABLE RESULTS.
M&A Leadership

For more information, contact:

Strategy ...
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ModalMinds Next Generation M&A

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This deck supports the Next Generation M&A Webinar series at https://www.youtube.com/user/ModalMinds

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ModalMinds Next Generation M&A

  1. 1. ModalMinds Next Generation M&A The SIM™ Method Webinar
  2. 2. Contents/Agenda The Problem with M&A The Next Generation Approach: SIM™ Head – Deal Doctrine Shoulders/Heart – Free Will & Adoption Legs – Tactical and Physical Execution Response - Action & Accelerators
  3. 3. The Problem with M&A The Merger & Acquisition failure rate continuously averages 70% Why the Traditional M&A Model struggles “Deal Jockeys” Set the Tone Valuation and Financial Focus ($) Negotiations and Legal Incomplete View of Deal Dynamics Planning and costs are disconnected from typical integration lifecycle
  4. 4. The Problem with M&A Traditional Models still under-estimate the role of “effective integration” Financial/deal focus leads to 2 major gaps Improper or Incomplete Drivers Sudden Integration Handoff Skill-set defeasance Holistic business overview Transformative opportunity Change management
  5. 5. The Problem with M&A These two (2) chasms are consistent barriers to M&A success Improper or incomplete drivers Ignore the role and issues around “NewCo” Deal-driven synergies miss post-close complexity Sudden integration handoff Transition equates to a toss over the wall Skills and method rely on standard PMO, program management
  6. 6. The Problem with M&A Where are experienced practitioners falling short? Core ingredients remain the same, but the recipe must be adjusted – timing, quantity, focus Corporate Development remains disconnected from post-close execution – relying on standard program management and PMI-like capabilities
  7. 7. The Problem with M&A Where are experienced practitioners falling short? Core ingredients remain the same, but the recipe must be adjusted – timing, quantity, focus Corporate Development remains disconnected from post-close execution – relying on standard program management and PMI-like capabilities
  8. 8. The Next Generation Approach M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughout Three (3) Layers Doctrine and dogma of the deal Scale of adoption Execution
  9. 9. The Problem with M&A - Summary The Merger & Acquisition failure rate continuously averages 70% Traditional Models still under-estimate the role of “effective integration” Two (2) chasms are consistent barriers to M&A success Experienced practitioners are still falling short
  10. 10. Contents/Agenda The Problem with M&A The Next Generation Approach: SIM™ Head – Deal Doctrine Shoulders/Heart – Free Will & Adoption Legs – Tactical and Physical Execution Response - Action & Accelerators
  11. 11. The Next Generation Approach M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughout Three (3) Layers Doctrine and dogma of the deal Scale of adoption Execution
  12. 12. The Next Generation Approach Strategic Integration Model ™ - The Head Function: Defines the doctrine or dogma of the deal Components 1. 2. 3. 4. Strategy Structure Leadership Communication Interlock Layer 2, Adoption  Free Will Layer 3, Execution  Program Management…
  13. 13. The Next Generation Approach Strategic Integration Model ™ - The Shoulders/Heart Function: Stage and scale adoption of stated deal doctrine Free will influences each participants’ response in their role Components 1. 2. 3. 4. Scale of adoption to evaluate integration participants Awareness – Participants have been notified of the deal Assessment – Participants determine their reaction Adoption – Actions align with Strategy and Structure Interlock Layer 1, Doctrine  Communications Layer 3, Execution  IMO plan and progress is influenced by where key players land and move along the scale
  14. 14. The Next Generation Approach Strategic Integration Model ™ - The Legs Function: Physical and tactical execution of the strategy Including discovery, planning, management and workstreams Components 1. 2. 3. 4. Non-financial discovery and due diligence Charter and Playbook development Integration Management Office and Plan Workstream activities Interlock Layer 1, Doctrine  Communications Layer 2, Adoption  Free Will
  15. 15. The Next Generation Approach - Summary M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughout Three (3) Layers Doctrine and dogma of the deal Scale of adoption Execution
  16. 16. Contents/Agenda The Problem with M&A The Next Generation Approach: SIM™ Head – Deal Doctrine Shoulders/Heart – Free Will & Adoption Legs – Tactical and Physical Execution Response - Action & Accelerators
  17. 17. Actions & Accelerators Impacting Strategy and Structure Pre-Close Align corporate structure to strategy – Leader Adaptability Index Define IMO teams, leaders and incentives Deliver complete Communication Plan Post-Close Establish 360 Degree Feedback process Execute brand management strategy Execute functional training plan (Continuing Ed)
  18. 18. Actions & Accelerators Obtaining and Tracking Adoption Pre-Close Leadership assessment, mid-level coverage Cultural assessment survey Functional gap analysis Post-Close Leadership evaluation (90d, 120d) Customer/Partner adoption review
  19. 19. Actions & Accelerators Facilitating Execution Pre-Close Ratify workstreams, scope, schedule and budget Define Levels of Authority and commitment Establish war room and IMO status reporting Post-Close Execute reporting and recovery NewCo Transformation Review (90d)
  20. 20. The Next Generation Approach Closing the gaps – prescriptive actions and accelerators Level Pre-Close Post-Close 1 Deal Strategy • Leader Adaptability Index ™ • Communication Plan • IMO Incentive Plan/Funding • 360 Degree Evaluations • Brand Management Plan • Functional Training Plan (CE) 2 Adoption • Mid-level Leadership Assessment • Cultural Assessment Survey • Functional Gap Analysis • Leadership Alignment Reviews • Customer Adoption Survey • Partner Adoption Survey 3 Execution • Integration Charter, Playbook & Plan • Defined Levels of Authority • Establish Integration Management Office & IMO War Room • Structured IMO management with clear escalation and recovery paths • NewCo Transformation Reviews
  21. 21. EVENT DRIVEN TRANSFORMATION. PROVEN LEADERS. MEASURABLE RESULTS. M&A Leadership For more information, contact: Strategy Execution ModalMinds Operational Integration info@modalminds.com What Works in the Field www.modalminds.com Business Process Optimization 800.957.0543 Technical Architecture & Integration Copyright © 2013 ModalMinds, inc. All rights reserved. and its logo are trademarks of ModalMinds, inc. ModalMinds

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