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Mand a toolkit pmi project management Presentation Transcript

  • 1. M&A TOOLKIT Post Merger Integration: Project Management© 2007-2013 IESIES Development Ltd. All Ltd. Reserved © 2007-2013 Development Rights All Rights Reserved
  • 2. “Acquisition integration project management is projectmanagement at its fullest, mostcomplex and most challenging” Vesta © 2007-2013 IES Development Ltd. All Rights Reserved
  • 3. The acquirer will have to make key trade-offs in deciding their integration approachKEY INTEGRATION DECISIONSStrategy First Integration FirstFast and “good Slow and carefulenough”Acquirer driven Acquiree drivenTransfer best Transformpractice “best of both”Integration Integration Process“CEO” ManagerFully staffed Lean Integration“Integration Office” © 2007-2013 IES Development Ltd. All Rights Reserved team
  • 4. The Integration Director plays the key project management roleTYPICAL INTEGRATION TEAM STRUCTURE Steering Committee [Chaired by CEO, with top line managers of both companies and key staff heads (CFO, CIO, HR Director)] Integration Director [Senior Executive, full time project role] Integration Team [Project managers] Functional work streams Human Purchasing Finance IT Communications Resources © 2007-2013 IES Development Ltd. All Rights Reserved
  • 5. People appointments are critical path, so that business leaders can take responsibility for integrating their functionPRUDENTIAL INTEGRATION TIMETABLE Source: Prudential Analyst’s Presentation © 2007-2013 IES Development Ltd. All Rights Reserved
  • 6. In a “merger of equals” the major milestone is achieving “one face to the customer”REQUIREMENTS FOR “ONE FACE TO THE CUSTOMER” One invoice One accounting system One finance function One customer service function “One face to One delivery the customer” One supply chain One logistics system One logistics function One salesperson Salesforce structure decisions Salesforce appointments Sales training © 2007-2013 IES Development Ltd. All Rights Reserved
  • 7. General Electric does so many acquisitions it has developed a portal to track merger KPIs and MilestonesGE’s e-INTEGRATION TOOL © 2007-2013 IES Development Ltd. All Rights Reserved
  • 8. What is front-of-mind for employees in the acquired company? How does this affect communication in a merger situation? © 2007-2013 IES Development Ltd. All Rights Reserved
  • 9. The importance of Communication in M&A…….. © 2007-2013 IES Development Ltd. All Rights Reserved
  • 10. A merged company has many stakeholders, each of whom have different agenda and interestsM&A STAKEHOLDERS GOVERNMENT CUSTOMERS Local National SUPPLIERS EMPLOYEES DISTRIBUTORS/ BUSINESS PARTNERS TargetCo BuyingCo CAPITAL MARKETS Do the messages you want to send different stakeholders have potential to conflict? © 2007-2013 IES Development Ltd. All Rights Reserved
  • 11. Summary: Key points in merger integration• “Motherhood” generic principles of merger integration plus deal-specific plan to: o Protect what is valuable o Realise the synergies• Every deal will have a different merger integration approach, there is no “one right approach”• Merger integration is demanding as project management can get - a draining and rewarding work experience• Remember in every communication that everyone is worried about their jobs and will scour everything you say for clues and rumours• Most common mistakes: Underdoing communication and not focusing enough people/leadership © 2007-2013 IES Development Ltd. All Rights Reserved