Pre-Planning Realities Deal may still be in flux, lots of unknowns, timing and close date amoving target Inability to speak with subject matter experts for critical integrationworkstreams Level of integration support required still TBD
M&A Trouble SpotsPeople ExecutionPreparation• Cultural conflict• Key talent loss• Lack of attention topeople issues duringimplementation• Competing priorities• Lack of senior mgmtcommitment• Lack of integration pre-planning• Overpayment foracquisitions• Weak due diligence onpeople and operations• Overestimatedsynergies• Lack of sharedvision/strategicdirection• Low/no integrationbudget• No integration playbookor consistent approach• Lack of IntegrationManagement Office ofteam (or poorlyresourced team)• Ineffective technologyintegration• Slow pace ofintegration• No end state planning• Scope creep
Pre-Planning Objectives & Rationale Identify value driversPre-Planning Objectives Information can help confirm high priorityworkstreams, functional subject matter expertiseneeds, financial reporting requirements andcross functional dependenciesRationale Determine Integration Objectives Information can dictate Integration ManagementOffice (IMO) structure and support needs, aswell as timing parameters, critical deliverablesetc. Risk Assessment Identify areas of potential risk and developmitigation plans
Identifying Value DriversDelivering value is the most critical deliverable of any integration.• Delivery and implementation of the business plan: Are you establishing anintegration plan that aligns with the operating plans of the new organization?• Identification and delivery of synergy plan: Have you created or are yousupporting synergy tracking and benefits realization as part of your integration plan?• Attainment of “quick win” cost reduction and revenue enhancementinitiatives: Have you singled out areas where cost savings and other businessbenefits can be quickly realized as a result of expedient and sound integrationplanning and execution?• Framework for benefit tracking: Do you have the tools set up to accurately trackand manage the integration synergy plan?• Key Employee and Customer Retention Plans: Do you have plans to retaincritical employees and proactively “lock down” critical customers/clients?
Determine Integration ObjectivesM&A Rationale• Economy of Scale• Cross-Selling• Economy of Scope• Geographical orOther Diversification• Vertical IntegrationPriorities• Business models• Value Drivers• BusinessEnvironment• Risk Areas• Culture Issues• ManagementPrioritiesAbsorptionAcquired companyconforms to parentTransformationBoth companies find newways of operatingBest of BothAdditive from both sidesAutonomyAcquired company retainsits independenceReverse MergerAcquired company dictatesterms to parentIntegration objectives & priorities should cascade offof M&A rationale and integration strategy
Risk AssessmentIntegration leaders should factor assessment learnings into workstream planningUniversal RiskAssessmentOperating StyleAssessmentHRAssessmentStakeholderInputIntegration Planning Impact• Workstream prioritization and timing• Overall integration timeline impacts• Critical dependencies• Cultural integration challenges• Communication planning priorities• Employee satisfaction/morale issues• Organization planning challengesFactoring assessment learnings into your integration plans will enableyou to proactively address potential hotspots and issues.
Whitaker & Company OverviewWhitaker & Company is an Atlanta-based consulting firmspecializing in post merger & acquisition integration.Since 2005, Whitaker and & Company has been involved inmerger integration engagements totaling over more than $25billion for both domestic and international companies. We helpcompanies realize the full value of their mergers andacquisitions via a full array of solutions and servicesWhitaker & Company President Scott C. Whitaker is anaccomplished executive with expertise in corporate strategyand operations with Fortune 500 companies, and is the authorof Mergers & Acquisitions Integration Handbook: HelpingCompanies Realize The Full Value of Acquisitions, acomprehensive resource to help companies create a scalablepost merger or acquisition integration process that acceleratesoperating and business benefit goal realization.For more information contact firstname.lastname@example.org
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.