The key skills required during the various phases of an M&A cycle are vastly different. While the initial phases are focused on building a business case for the deal and the financial benefit resulting from the transaction, the planning and implementation phases require target operating model design, ongoing operations and change management with emphasis on combining the two organizations as efficiently and effectively as possible.
The broad steps for a PMI are fairly standard in terms of setting up an IMO and planning post-merger operations. The difference between a successful Integration which achieves or exceeds synergy goals and one that fails is distinguished by a two-pronged focus on value and change executed in a controlled manner and with support and attention from leadership. In this environment, it is the role of the integration management office and the integration project team to ensure that all functional organizations are engaged and project initiatives are managed collaboratively to ensure successful, efficient operations.
We help identify key risks and rewards throughout the acquisition life cycle, even for the most complex deals. We help you align deals with your strategic business objectives, maintain compliance and enhance value from integration and potential upside opportunity. Our team of specialists helps you focus on the key questions during the critical stages of planning and executing an acquisition.
A value-focused change management approach is the key to an accretive and seamless integration.
Value-focused change management includes identifying cultural strengths and weaknesses, and defining how to leverage them to overcome the barriers to changes. This requires a disciplined and structured process, as well as creating a detailed plan beginning with day one and continuing through each phase of the integration process. This plan should include essential go/no go checks at each stage, focusing on the financial view and tracking targeted synergy benefits.
After the deal is announced, the first action should be developing an integration project strategy and setting up an integration management office. Designing the team, tools, time lines and governance is critical for ensuring that all components of the planning process are effective. This includes creating a company-wide stakeholder engagement plan, and ensuring the key and strongest leaders are involved and fully committed to the integration.
Merger of two entities can become demanding from a personnel and financial perspective, and can quickly go out of control if high level goals and future aspirations are not outlined quickly by management. Quick and clear decisions on target operating model and required synergies will establish follow-up processes that can then be managed. Various functions will face challenges, but having a mitigation plan for potential risks in tandem with appropriate senior management involvement will ensure that these functions are prepared for any complications.
Our post merger integration solutions cover multiple areas around - Strategy, operations, infrastructure, policy & procedures. Our solutions help client's move towards an integrated environment in a phased/structured manner, while achieving the objectives of integration:Our experienced team build robust, transparent financial models covering all circumstances and across a wide range of sectors. Our approach is to start with a clear understanding of the situation and design a bespoke model using proven methodologies and techniques. The advantages of our models include creating outputs and usability that are designed specifically for the user, as well as providing the flexibility of assumptions to perform sensitivity analysis.
Our experts partner with clients on corporate planning, providing perspective not only on immediate value and impact, but on long-term implications. We work closely with management and other advisers to leverage and complement their knowledge and ensure maximum impact, and actively support implementation and skill building.
