Acquisition            IS YOUR         Integration Team               Throwing the Deal’s                     Value-Driver...
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[INFOGRAPHIC] Is Your Acquisition Integration Team Throwing the Deal's Value-Drivers Overboard?


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This infographic identifies some of the key issues facing M&A acquisition integration teams. It comes from the Growth Team Membership (part of Frost & Sullivan) and its survey report on corporate development executives’ 2012 priorities and post-acquisition integration.

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[INFOGRAPHIC] Is Your Acquisition Integration Team Throwing the Deal's Value-Drivers Overboard?

  1. 1. Acquisition IS YOUR Integration Team Throwing the Deal’s Value-Drivers Overboard? M&A isnt just about capturing market share; its also a way to secure new capabilities, products, and customers. Whether you achieve these objectives depends on how successfully you integrate with an acquired company. What is the composition of your integration team? ALL B-to-B B-to-C COMPANIES COMPANIES COMPANIES Other 6% 10% 48% 33% 67% Ad Hoc Team 19% Part-Time Team with Supplemental Staff 16% Full-Time Team with 19% 13% Supplemental Staff 11% 0% 7% Part-Time Team 11% 14% 13% Full-Time Team 8% 5%DRA WBACK Ad hoc integration teams perform inconsistently and elongate the timelines. At what stage in the M&A process does your integration team begin integration planning? MONTH ONE ALL 17% Opportunity B-to-B 21% Analysis B-to-C 13% MONTH TWO MONTH THREE Due ALL 52% Diligence B-to-B 52% 50% MONTH B-to-C FOUR Deal ALL 14% Negotiation B-to-B 16% MONTH FIVE B-to-C 12% Deal ALL 11% MONTH Finalization and B-to-B 10% SIX Anouncement B-to-C 13% ALL 6% MONTH Day SEVEN B-to-B 0% One B-to-C 12% 0% 55% BENEFIT Initiating planning during the due diligence phase keeps the integration plan focused on the deal’s value-drivers and ensures early interaction with the target’s employees—thereby increasing retention of key staff. Does your integration team manage operational due diligence? ALL B-to-B B-to-C COMPANIES COMPANIES COMPANIES 63% 68% 54% Yes Yes Yes BENEFIT Having the integration team conduct operational due diligence generates feedback on deal feasibility, scopes resource needs appropriately, and identifies synergies and divergences early on. Source: "Strategy Implementation and Acquisition Integration: 2012 Global Corporate Strategy and Corporate Development Priorities Survey Results”: Definition: “All companies” includes all respondents to the survey, regardless of their business model. Original File: Growth Team Membership™ (GTM) is a premier, subscription-based best practices organization affiliated with Frost & Sullivan @Frost_GTM Copyright ©2012 Frost & Sullivan