Merger & Acquisition deals are most often made to scale up, expand into new geographic markets or product lines, add new capabilities or integrate the supply chain. Regardless of the reason, when your business is considering an M&A, there are 3 essential roles a CFO must play to lead it to success.

2. CFOs & M&A Deals
 M&A deals are most often made to scale up, expand
into new geographic markets or product lines, add new
capabilities or integrate the supply chain. Regardless of
the reason, when your business is considering an M&A,
there are 3 essential roles - which I like to call playing
SIR - that you, being the CFO, must play to lead it to
success.

3. 1) Strategize
 Ensuring that the deal is financially sound falls into your
purview automatically.
 In addition, you are also expected to offer insights into
qualitative aspects like shaping the renewed vision for
the future and identifying potential problems.
 Since you are the trusted truth-teller of stakeholders,
you will have to give voice to this vision to garner their
support and also explain yourself if objectives are not
achieved as planned.

4. 2) Integrate
 Consolidating two entities could reduce costs, increase
sales, boost profitability, pool in talent and offer a range
of other benefits.
 To kick-start the momentum in a timely manner, you
would play a key role in creating a sound integration
plan after the merger and identifying the people who
can execute it.
 This role will last all through the first year, when the
integration effort is most significant, in charting out the
roadmap for the future.

5. 3) Redesign
 Merging the finance teams effectively is the least of your
worries.
 You must define objectives and create performance
metrics that more than justify the deal’s purchase price.
 You must redesign the compensation and incentive
programs.
 You must organize training programs to help new
employees identify the key value drivers within their
control and how to attain performance goals.

6. To Conclude…
 Your bittersweet role of truth-teller would also mean
that you would have to explain to stakeholders if
objectives aren't achieved. In such a scenario, make
your communication timely and clear: explain the
reasons behind the failure and reassure them with
specifics of the corrective steps being taken.

7. Maureen O'Connell
Maureen O’Connell is the current Executive VP, CFO
and CAO of Scholastic Corporation. When not
working, Maureen loves running, Skiing, Scuba
Diving or Travelling.