Crescendus™ Practical Brilliance Series - M&A Integration Steps This document provides companies with a practical framework to handle post merger or acquisition integration efforts without being bogged down in process flowcharts, consultant jargons & endless power points! The following audience will benefit from this document- Executive Team Business & Corporate Development Operations Product Development Marketing & Sales ______________________________________ Crescendus™ Contact Information: www.crescendus.com

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© Crescendus™ 2012-2014. All Rights Reserved.
www.crescendus.com | email: contact@crescendus.com | Tel: 865-332-0942
Practical Brilliance Series
Straight Talk on Mergers & Acquisitions |
M&A Integration Steps
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So you have acquired a Company. Congratulations!
Here, we explain some of the practical steps to answer "Now What?"
issues for key functions.
We recommend you do some of the following activities (& no, in most cases, you do not need an
army of post-merger or post-acquisition consultants with endless power point slides and 30, 60,
90, 180 days process flowcharts, gap analysis & execution steps!) to ensure smooth transition-
1. Finance Operations- Quickly understand and acquire control of the acquired company's
financial operations and reporting functions within the first 4 weeks. This shouldn't
surprise you since most of these activities were analyzed during the due-diligence
process. During this round, immediately place your own financial controllers on the
acquired company's site(s) and let them send you weekly reports on the finance related
integration functions. While you do this, be sensitive to the acquired finance team's
concerns regarding job security and future prospects. In parallel, also review the acquired
financial talent before deciding on tough issues such as eliminating redundancies. Even if
some of their talent is redundant within the finance operations, you should explore their
potential in other functions (e.g. Supply Chain, Business Development, Market Modeling
etc.) where their sound analytical mindsets may be put to good use.
2. IT Operations- As a top priority, integrate the IT functions that are involved in financial
reporting functions. While you are it, understand their CRM tools and start internal
workgroups around 3-4 top initiatives that will ensure smooth revenue operations (e.g.
customer renewals, contracts, sales prospecting inputs etc.). Once these two vital
functions are quickly addressed, then get into the mid term issues such as integrating
supply chain and HR IT processes.
3. Marketing & Sales- Before you get into the details of pricing, sales compensation,
product portfolio rationalization, territory allocations, rightsizing sales forces etc.,
analyze the top accounts by revenue and profit growth potential nationally and also by
regions (also termed as territories). Understand all the existing issues within these
accounts, and only then, organize a Customer Roadshow attended by your CEO, CFO,
VP's of Marketing, Sales & Product Development and the relevant sales representative.

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© Crescendus™ 2012-2014. All Rights Reserved.
www.crescendus.com | email: contact@crescendus.com | Tel: 865-332-0942
During this roadshow, the primary goal is to reassure the decision makers of key accounts
that everything remains the same and that the company (led by the VP of Sales) will
personally keep them updated about the product, services, sales support and strategy
roadmap every step of the way. The roadshow should be completed within the first 3-4
weeks after the acquisition. If you delay, you will end up helping your competition win
inroads with some of your most important customers.
In parallel, have the Directors of Marketing, Sales, Product Development, R&D,
Operations, Finance and Legal (from both companies) review current Roadmaps, and
based on industry, market and customer intelligence, propose strategy recommendations
that maximize revenue and profit potential. During this stage of discussions, get into the
minute details of product portfolio rationalization, pricing, budgets, sales territories etc.
These functions should be completed within the first 6-12 weeks post acquisition, with
priority given to pricing rationalization of existing products and services to maintain sales
continuity during the transition phases. Refine the assumptions and internal processes
during weeks 13-26, and by that time, most of the foundations of a solid integration
would have been established. Resist the impulse to overdo Power Point slides, Gantt
charts and Excel half circle/full circle templates that highlight task completions. Focus
more on thinking and actual discussions with stakeholders and get their practical
feedback on how things should be executed. This process of engaging stakeholders
during the integration phase will ensure quick buy-in on all future best practices and
standard operating procedures.
4. Management Communications- Before you communicate, remember to be real. If you
are fake, all your efforts will be wasted and it doesn't matter if the CEO is doing all the
talking. Show genuine concern for the acquired team and welcome the new family
members and yes, value their input. The CEO and the Executive team (on both sides)
should meet with the employees of both companies since everyone will be nervous about
the future direction of the company and issues pertaining to job security. Prioritize the
majority of your onsite meetings at the acquired company sites and let your current
employees dial in via videoconference. This sends a clear message that you are there for
them and are willing to listen.
Communicate the One Company vision and focus on growth and also state clearly that
management will use this opportunity to transform both companies (& not just the
acquired company). Manage expectations and have standing CEO meetings every 2
weeks. Executives and Directors should schedule standing weekly meetings to reassure
employees. After 6 months, you can scale back the frequency of such meetings.
5. Human Resources & Culture- Evaluate the key managers you want to retain and within
the first 3 weeks, secure their services by offering attractive retention packages. In
parallel, talk about common motivations, performance metrics, rewards and management
styles that will be encouraged within the combined company. These discussions should
be championed by the CEO, as part of the culture and management communications

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© Crescendus™ 2012-2014. All Rights Reserved.
www.crescendus.com | email: contact@crescendus.com | Tel: 865-332-0942
discussions. It is important to note that you should focus on general management good
practices. Do not hype the good news part since you will have to deal with difficult
rightsizing decisions after the company strategy is finalized.
6. Supply Chain & Operations- For the first 4-6 weeks, do not change existing operations
until the overall company strategy discussions are underway. Use the initial weeks to
learn about the acquired company's operations, their competitors, suppliers and
employees. Invite key suppliers to your premises and hold joint meetings regarding future
scenarios. This will prepare your suppliers for the tough cost cutting discussions that will
ensue (usually 8-16 weeks after acquisition). Cost cutting discussions should be led by
executives from operations and finance. IT should be invited to key discussions after they
are done with key integration tasks (e.g. financial reporting).
7. Investor Meetings- Public companies should host investor conference calls and
roadshows with key investors during the first 2-3 weeks after the acquisition. Stick to the
standard M&A slides and keep explaining the strategic rationale for the acquisition and
targeted benefits. In most cases, the executive in charge of investor relations should be
sufficient for such meetings.
8. Other Complex Issues- Issues such as taxes, transfer pricing, compliance, legal,
regulatory etc. should be handled by the relevant experts in parallel, while the company
focuses on the above top priorities. These issues should be handled in several phases and
be resolved within the first 6 months post acquisition. As in the above cases, all meetings
should be attended by experts and managers from both companies.
GENERAL POINTS-
1. One Company Vision- Use the acquisition to transform the parent company. Do not just
focus on integration plans for the acquired company.
2. Employee Roles- Use this opportunity to reshuffle your executive team and middle
management, and check if some of the acquired talent may be better leaders that what
you currently have. By doing this, you will send a clear message to the entire company
that management is serious about all talent and not just those present within the parent
company.
3. Board of Directors- Engage your Board members to attend management communication
meetings and have some of them handle employee Q&A.
4. Partner Relations- Invite all your strategic partners to confidential management
meetings so that they remain engaged during the entire integration process.
5. Soft Skills- Integration really is about soft skills and making sure you treat people with
respect. Stay humble and welcome the new employees as a valuable addition to your
existing team. If you treat the employees right, the rest of the integration process will be
manageable.