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Merger Integration Planning & Execution
Tips for a successful post-acquisition integration To give your acquisition deal a fighting chance of success: Investigate different options for an appropriate organisational design for the target company, rather than imposing your own structure. Carefully manage the issues around control.
Remember that previous compensation arrangements affect how any new arrangements are perceived. Consider whether standardising pay scales, work rules and brands is really a good idea. Mobilise the integration management program Setup an Integration Management Office IMO , align the functional integration teams, and develop work stream project charters 4.
Plan for integration Identify tasks for Day 1 readiness, develop integration roadmaps from Day 1 to Day and until the final end state for the NewCo 5. Why EY?
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Connect with us. Home Insights. Identify synergy areas and quantify the benefits. Mobilise the integration management program.
M&A Post Merger Integration/ Planning & Consulting
Execute integration and monitor transformation. Want to learn more? Other Transaction Services Offerings. Show resources Buy-Side Diligence. Sell-Side Diligence. Without a carefully planned and executed strategy, the odds of completing a successful merger plummet.
Do M&A deals create value?
The numbers aren't exactly reassuring. A study by KMPG estimated that 83 percent of all mergers fail to increase shareholder value, while a McKinsey report3 suggests 70 percent of mergers can be characterized as failures. It's fair to say that post-merger integration is the determining factor in the ultimate success or failure of any deal.
It should also be noted that there is no fixed "integration" period during the course of a merger. Rather, acquisition integration is a sustained process that runs from pre-deal due diligence all the way to present-day management of the new enterprise.
Guide Post Merger Integration - Planning & Execution Model
Given the elevated multiples, companies are paying for acquisitions, successful integration has become even more important considering the difficulties in finding the right acquisition target. The roadblocks to successful post-merger integration can arrive in a variety of forms. There are a few integration problems that crop up with alarming consistency. A survey by Roland Berger Strategy Consultants of more than post-merger integration managers from around the world and across more than a dozen industries revealed the following:.
There are, however, a variety of steps companies can take to mitigate these and other common post-merger integration issues. The following are examples of the most relevant. As mentioned above, integration isn't a discrete phase—it's an ongoing process that should predate the signing of any deal. Issues relevant to the eventual integration of the acquisition should be explored during the due diligence period.
Now is the time to discuss shared strategic choices and priorities for the new enterprise. Make sure expectations and goals are in alignment before moving forward.