The document discusses post-merger integration challenges. It notes that 55-77% of mergers and acquisitions fail to achieve financial goals due to underestimating human capital risks. These risks include loss of key staff, low morale, and slow adaptation to change. The document proposes a strategic action planning program to minimize these risks through due diligence, change management support, and executive coaching. This investment protection program aims to support successful integration and performance.

1. Post Merger & Acquisition
Post Merger & Acquisition
Human Capital Risk Mitigation
and Investment Protection
© 2010. All Rights Reserved by VPI Strategies and Conduit Careers

2. The M&A Report Card
The M&A Report Card
According to a multitude of studies conducted
over a thirty year period covering more than
7,000 mergers and acquisitions, 55‐77% failed to
deliver on their financial promise.
‐ Carleton and Lineberry

3. Why Do Mergers Fail?
Why Do Mergers Fail?
Majority of money is spent exclusively on hard costs.
Missing strategic action plan for personnel integration.
Bottom‐line impact of human capital mistakes are not
Bottom line impact of human capital mistakes are not
recognized.

4. Why the Negative Impact?
Why the Negative Impact?
Stages of Change
Anticipation – Recommitment ‐
something going Reconnecting to a
to change. sense of purpose.
Letting Go – Reappraisal ‐
Pro ductivity
things are different and Taking a new look and
letting go of the past. assessing options.
Disorientation ‐
Things are no longer what they were
and not yet how they are going to be.
Time

5. Investment at Risk
Investment at Risk
LOSS of
ASSETS
LOSS of LOSS of
NEW Disorientation POTENTIAL
CUSTOMERS REVENUE
SLOW
ADAPTATION

6. Costs of Failure
Costs of Failure
Billions of dollars can be lost in an M&A with ongoing:
Loss of equity – average of 3%
y
Loss of key executives and staff
Loss of key business relationships
Loss of market share
Loss of market share
Decreased customer satisfaction
Decreased productivity
Decreased productivity
Low staff motivation and morale

7. Impact of Culture on Performance
p
Study by Kotter & Heskett
Revenue Increase 166%
R I 166% 682% Revenue Increase
682% Revenue Increase
Stock Price Increase 74% Integrated 901% Stock Price Increase
Disoriented
Net Income Increase 1% 756% Net Income Increase
Workforce Expansion 36% 282% Workforce Expansion
*Workforce expansion due to growth.

8. Human Capital Risk Mitigation
Human Capital Risk Mitigation
Change Management for:
‐ Strategic Action Planning
Strategic Action Planning
‐ Performance Management
‐ Successful Integration
Minimizes Negative Risk of:
‐ Loss of Assets
Loss of Assets
‐ Loss of Potential Revenue
‐ Loss of New Customers
‐ Slow Adaptation
Slow Adaptation

9. Investment Protection Program
Investment Protection Program
Strategic Action Planning and Implementation:
Due Diligence and Risk Analysis
Road Map for Integration‐Management
p g g
Comprehensive Communication Plan
Executive Coaching
Executive Coaching

10. Program Leaders
Program Leaders
Sherri Petro
• Expertise in business systems architecture, strategic planning, and organizational communications for over 20 years.
Specializes in cross generational motivations and values. Education: MBA emphasis in Strategic Planning from
S i li i ti l ti ti d l Ed ti MBA h i i St t i Pl i f
Pepperdine University, BA in Psychology from Youngstown State University, magna cum laude, and LEAD San Diego
graduate.
Jon Vencil
• Expertise primary research and evaluation with over 19 years experience in strategy development, economic and
financial research, quantitative analysis, forecasting, and evaluation research. Education: MS in Applied Economics
from University of Massachusetts, Amherst and BA in Economics from San Francisco State University.
Mikki Jo Park
• Expertise is strategically aligning company talent development with core business. Over 20 years of experience
developing acute acumen for talent resource alignment. Education: BA in Marketing Communications from Colorado
d l i f l li Ed i BA i M k i C i i f C l d
State University. Advanced certifications in Strategic Action Planning, Conflict Resolution, Leadership, and Performance‐
based Hiring.
Luis Echeverria
• Expertise as an International Investment Banker Corporate Executive and Management Consultant for more than 35
Expertise as an International Investment Banker, Corporate Executive, and Management Consultant for more than 35
years. Education: Sloan Program of Stanford University, Masters in Economy, Marketing, Universidad del Valle de
México, Credit Program of Chase Manhattan Bank, New York.

11. Program Leaders
Program Leaders
www.VPIStrategies.com www.ConduitCareers.com
Contact Sherri Petro at 888.207.0905 ext. 202 or Sherri@VPIStrategies.com
8305 Vickers Street, Suite 100, San Diego, California 92111
© 2010. All Rights Reserved by VPI Strategies and Conduit Careers