Step 10: Execute Post Acquisition Integration

In this step, we answer common FAQs about acquisition and integration and provide best practices, playbooks, articles, and presentations that will help you:

  • Execute your acquisition integration strategy expeditiously
  • Communicate effectively to stakeholders on Day 1 and thereafter
  • Achieve early wins

Plus, we offer tools that will help you track results against plans, synergies and milestones achieved to date, activities to be completed, and unresolved issues. We also cover how to close out your Integration Management Office and transition any remaining long tail integration activities to business line leaders.

Acquisition Integration

Acquisition Announcements

Employee Questions and Answers

M&A Day 1

Post-Day 1

Playbooks: Day 1 - Day 180

Tools

IMO Close Out

Acquisition Integration

Answers to FAQs about Acquisition Integration

Answers to FAQs about Acquisition Integration

Answers questions including:

  • What is an acquisition integration?
  • What are key project management best practices for acquisition integrations?
  • What happens when a structured project management approach to the acquisition integration process is not followed?
  • What are the most influential early wins you can achieve in an integration to build momentum and provide reassurance an acquisition is a good one. . .
Answers to FAQs about Managing People in Acquired Organizations

Answers to FAQs about Managing People in Acquired Organizations

Answers questions including:

  • How should you manage employee retention during a post-merger integration?
  • Why should employee issues be addressed quickly after close of a merger?
  • What is leadership soft due diligence?
  • When does employee turnover peak in an integration...
High-Velocity M&A Change Management

High-Velocity M&A Change Management

During the early months of merger integration, about the best you can do is manage the blur—ride the waves, so to speak, instead of trying to be boss of the ocean. You can’t avoid the rough water, so you might as well make the most of it …

 
Uncommon Merger Management for Uncommon Growth

Uncommon Merger Management for Uncommon Growth

Acquiring and merging an organization represents uncommon growth. The situation calls for uncommon management, bold strokes, a rejection of status quo management …

 
The Magnetic Pull of Momentum During Post-Merger Integration

The Magnetic Pull of Momentum in Post-Merger Integration

Just as people tend to disconnect emotionally when their organization stalls or loses ground, they close ranks and commit themselves more fully when the organization is “on a roll.”

You must mobilize your people. Outlaw inertia. Start now to change the cadence in your work group, and create a sense of urgency. Get the organization moving at a faster clip. Push for daily progress. Post results. Celebrate accomplishments, then “raise the bar.”
Top 10 Ways to Protect Your Career in a Merger

Top 10 Ways to Protect Your Career in a Merger

Let’s start with number 10 and count down.

10. Don’t jump in front of a bullet. A lot of hours, energy, and effort have probably gone into making your merger happen. Going forward, chances are good you won’t be able to reverse any of senior management’s decisions. Therefore, think twice before you voice any emotionally-charged negative opinions ... 
M&A Metrics That Always Matter

M&A Metrics That Always Matter

We find that costly decisions are often made in management's attempt to generate goodwill. Companies are inclined to overspend in their attempts to buy loyalty, or to reduce feelings of guilt that stem from unpopular actions ...

 
10 Most Common Post Merger Integration Problems

10 Most Common Post Merger Integration Problems

These are the 10 most common post-merger integration problems that cause chaos, slow integrations, and frustrate management.
Best Practices for the M&A Integration Process

Best Practices: M&A Integration Process

Implement an overall program management process to:

  • Monitor progress against the key milestones
  • Raise and resolve issues and address risks quickly and efficiently
  • Make cross-functional decisions rapidly in regular steering team or executive team reviews …
Merger Integration Project Management

Merger & Acquisition Project Management

Disorganization gets dangerous during an integration. Let’s face it; merging is confusing enough even when good project management practices are in place ...
How Much Resistance to Change is Normal?

How Much Resistance to Change is Normal?

What sort of push-back is predictable in an M&A integration?  How much resistance is “reasonable”?

If you have a reliable frame of reference, you can put things into perspective.  Knowing what’s “normal,” you’ll have a better feel for how you should react to the particular situation facing you.  So let’s look at the typical scenario.

We’re dealing in generalities here, but the breakout usually goes about like this.

Some 20 percent of the people in the acquired company are “merger-friendly.” …
 
Change Management in M&A: How to Manage Resistance

Change Management in M&A: How to Manage Resistance

1. EXPLAIN THE REASONS FOR THE CHANGE.

Usually the best steps in dealing with problems are the preventive ones.

Perhaps the most effective way to minimize resistance is to make sure people in the organization have a good understanding of the rationale for the changes ...
The Make or Break Point in Change Management During Mergers & Acquisitions

The Make or Break Point in Change Management During Mergers & Acquisitions

Opposition surfaces as soon as the integration process gets underway. Resistance starts to climb. You push to change the organization, and it starts pushing back ...
5 Guidelines for Setting M&A Priorities

The 5 Guidelines for Setting M&A Priorities

Ordinarily managers find it very difficult, particularly during the early stages of an integration, to establish priorities correctly and stay focused on them … 
 

Acquisition Announcements

Acquisition Announcement Letter to Employees

Example: Acquisition Announcement Letter to Employees

TO: Employees

FROM: CEO

SUBJECT: Acquisition

Today marks a historic and exciting milestone for all of us: the transaction to combine the Acquirer and Acquired Co. is complete. Together, we will form a stronger business, drive further growth and innovation, and create more value for our employees, customers and stakeholders ...
Welcome Letter to Employees After an Acquisition

Welcome Letter to Employees After an Acquisition

TO: Acquired Co. and Acquirer Employees

FROM: CEO

SUBJECT: Acquisition

Today, we have completed the acquisition of Acquired Co. We have the unique opportunity to build upon our complementary portfolio, strong businesses, recognized brands and quality products to become one of the leading companies in our industry. To our newest employees, let me be the first to welcome you to Acquirer...

 
Letter to Employees - Merger or Acquisition Announcement

Company Merger Announcement Letter to Employees

Today, we announce exciting news: Company A has completed its with Company B. This is an important day for our organization and one that ensures we remain a highly competitive global company.

We plan to quickly integrate the company and finalize the corporate organization structure within the next 90 days. The success of our integration effort will be driven by how effectively our employees work together to deliver value to our customers and results to our bottom line ...
How to communicate mergers or acquisitions to your customers

How to Communicate Mergers or Acquisitions to Your Customers

Examples of M&A communications to customers from three different acquirers. 

Excerpt from first example:

T4 has recently announced its agreement to purchase OCN to become one of the foremost business service providers in North America. This provides our customers the opportunity to access an enhanced service portfolio over a larger geographic area.  T4 is and will remain committed to supporting our customers’ mission critical requirements ... 
Letter to Customers After an Acquisition

Letter to Customers After an Acquisition

We have announced exciting news: Acquirer and Acquired Co. have completed the transaction to merge our operations.

This is a game-changing combination which will provide us with the scale, geographic reach, and capabilities to solidify our position as a leading provider of materials in our industry. Going forward, you will receive even more value from our products:

  • We will have a greater portfolio of quality products and a family of brands as well as increased capabilities to innovate superior products and systems 
  • We will tap into Acquired Co.’s industry-leading technology ...
Acquisition Letter to Customers

Acquisition Letter to Customers

Dear Customer,

Today, we announce exciting news: Company A has completed its acquisition of Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broader our business platform and deliver more value to our customers.

We know our success is dependent on your success . . .
Acquisition Announcement to Suppliers and Answers to Supplier FAQs

Acquisition Announcement to Suppliers and Answers to Supplier FAQs

Content

Acquisition Announcement to Suppliers
Answers to Supplier FAQs

Excerpt from Supplier FAQs

  1.  What is the purpose for Global Procurement?
    To provide the largest volume opportunity for our supplier business partners.  We believe that with larger volumes the supply base’s manufacturing cost will be lower, thereby reducing our cost.
     
  2.  What are the short and long-term implications?
    Short Term ...
Company Merger Letter to Vendors

Company Merger Letter to Vendors

Dear Valued Supplier,

Today, we announce exciting news: Company A has completed its acquisition of (merger with) Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broaden our business platform and deliver more value to our customers.

We are excited about what the new Company AB has to offer: . . .
Identify 3 Mistakes

Can You Identify the 3 Mistakes in this M&A Presentation?

Employee Questions and Answers

Expect These M&A Questions

Expect These Questions During a Merger or Acquisition

The deal will create numerous questions in the minds of stakeholders. By anticipating their concerns in advance, you’ll be better prepared to address them …
 
Answers in M&A to Employee Frequently Asked Questions

Answers to Employee Post-Merger Integration Questions

Answers to 43 common frequently asked questions by employees on the front-end of an post-merger integration.

  1. Will offices or other facilities be closed?
    For the time being there will be no changes and we will continue to go to market as we have in the past. We will begin immediately to get to know each other and develop plans to combine our businesses in the most effective way ...
M&A Day 1 Answers to Employee Frequently Asked Questions

M&A Day 1 Answers to Employee Frequently Asked Questions

Excerpt from Answers to Employees FAQs

  1. Is the purchase/sale of Acquiree to Acquirer finalized?
    Yes. The U.S. Department of Justice (DOJ) and Acquirer have entered into an agreement which permitted the acquisition to proceed. The Acquirer and Acquiree have both received Board and Shareholder approval and we have officially closed the deal.
     
  2. What Acquiree offices are included in the sale?
    All Acquiree’s operations in North America, Europe, and Asia are included in the deal..
PE Firm Cover

Private Equity Acquisition - Talking Points and Answers to Employee FAQs

Content

Talking Points for Executives at Employee Meetings
Answers to Employee FAQs

Excerpt from Talking Points for Executives at Employee Meetings

  • Welcome everyone! It’s a pleasure to meet with you today. We’ve invited you here to celebrate the announcement of our acquisition by a highly regarded, successful private equity firm,____________.
     
  • Our acquirer provides management and oversight for the multiple businesses in their portfolio, which will soon include our company . . .

M&A Day 1

M&A Day 1: The Power of Opening Moves

M&A Day 1: The Power of Opening Moves

So the deal closes. It’s “Day 1.” Are you ready for one of management’s big moments …
M&A Day 1 Mandatory Initiatives by Work Stream

M&A Day 1 Mandatory Initiatives by Work Stream

Agenda

  • Day 1 Mandatories Summary
  • Day One Mandatories
  • IT
  • IT Day 1 Status
  • Finance
  • Communications
  • Legal
  • HR
  • East Operations
  • West Operations
  • Real Estate
  • Corporate

 
M&A Day 1 Onboarding Guide

M&A Day 1 Onboarding Guide

DAY 1 

Today, marks the beginning of our new organization. This Day 1 Onboarding Guide is designed to help you understand changes that are taking place (or will take place) and any actions you may need to take.

The purpose of this guide is to explain:

  • What you need to know now (Now: this week)
  • What you'll need to know and do in the very near future
  • When other changes will take place and when you can expect to hear more about them
Day 1 Compensation and Benefits Cover

Day 1 Compensation and Benefits

Agenda

  • Impact on Your Job
  • Our Commitment to You …
  • Transition Road Map
  • Transition Events Schedule
  • Important Compensation and Benefit Reminders
  • Acquirer Compensation Adjustments
  • Compensation - Exempt Employees
  • Compensation - Office Hourly Employees . . .
Post Merger Integration Compensation, Benefits, and Policy Changes

Post-Merger Integration Compensation, Benefits, and Policy Changes

Acquiree's Pre-Merger Compensation and Benefits Plan and the Acquirer's Post-Merger Changes in 40 Areas:

  1. Salary Plans
  2. Incentive Plans (Cash)
  3. Restricted Stock
  4. Overtime
  5. Exempt Overtime
  6. Overtime Meals
  7. Call-Out Pay
  8. Shift Differential
  9. Cafeteria Plan ...
Communication of New Benefits Plan Post-Acquisition

Communication of New Benefits Plan Post-Acquisition

Content

  • Communication of New Benefits Plan 
  • Talking Points
  • Guidance
  • Vehicles
  • Assumptions
  • Timeline for Communicating Benefits Program
Employee Briefing

Employee Briefing on Acquisition

Content

Why Acquired Co.
Market Strength / The People
Combined Strength
Acquired Co. Overview 
Strategy for The Future North America
Opportunities for Employees
Merger Timeline
More Information. . .
M&A Day 1 Employee Onboarding Plan

M&A Day 1 Employee Onboarding Plan

What to Avoid in Employee Orientations

  • A tedious data dump 
  • Boring presenters
  • Executives who do “touch-n-go’s” or “flyovers” without any real engagement
  • Dumbed-down orientations for employees (separate from managers) …
Can You Identify the 3 Mistakes in this M&A Presentation?

Can You Identify the 3 Mistakes in this M&A Presentation?

Can you identify the three most common mistakes by executives in M&A? You will hear at least one of these ill-advised comments during your M&A integrations.

Post-Day 1

Engineer Early Success in Your Merger

Engineer Early Success in Your Merger

Every merger, once announced, is immediately put on trial. Top management—those who crafted the deal—also stand accused. And the accusers just keep crawling out of the woodwork as several months go by …

 
Due First 30 Days By Work Stream

Due First 30 Days By Work Stream

Work Streams

Finance
Information Technology
Legal
Human Resources
East Operations
West Operations
Corporate
M&A Integration Review 60 Days Post-Close

M&A Integration Review 60 Days Post-Close

Agenda

  • Merger Integration Report Card – 1st 60 Days
  • Survey – Concerns Raised
  • Next 60 Days: Integration Challenges
  • Recommendations from Managers
  • Executive Dilemmas
  • The Tough Questions
  • Recommendations for Next 90 Days
Acquisition Integration Update For Employees 60 Days Post Close

Acquisition Integration Update For Employees 60 Days Post Close

Content

Executive Summary
Integration Status
Acquisition Synergies
Operating Expense
Reductions Guiding Principles
M&A Integration Status Report: First 90 Days

M&A Integration Status Report: First 90 Days

Agenda

Status of Integration Initiatives
First 90 Day - Initiatives Status Summary
Finance
Human Resources
Information Technology
Legal
Corporate
Day 100 M&A Integration Review

Day 100 M&A Integration Review

Methodology

  • All Team Leads were interviewed; answers were aggregated and kept anonymous 
  • Output was organized by topic into recap slides for each question 
  • Questions were centered on broader “Newco” topics …
Integration Update 90-Days Post-Close from CEO

Post-Merger Integration Communications from CEO

First Page of 3-Page Post-Merger Integration Update

From: CEO
To: Employees

It’s now been three months since we combined our companies. I’d like to explain what integration challenges lie ahead and how you can continue to help.

First, I thank you all for your cooperation and hard work. Integrating two companies is tough and I recognize that many of you have put in a lot of additional effort to help the two companies begin operating as one. I thank everyone for their patience ...

 
Sample Letter: Employee Communications During M&A

Sample Letter: Employee Communication During M&A

What Our Company Needs from You

  • Continue to be patient and understanding as we push through some of the tough integration challenges related to the core parts of our business …
     
Activities by Work Stream

180 Day Post-Merger Integration Plan at 90 Days Post Close

Human Resources:
Compensation

  • Plan for mid-transition hires
  • Communicating changes to salary grade and/or pay adjustments
  • Exec Comp:  SC compensation changes in System
  • All pay changes effective April in System

401K ...
Post-Merger Integration at 100 Days: The Customer Tolerance Point

Post-Merger Integration at 100 Days: The Customer Tolerance Point

HP-Compaq used a M&A integration approach called “Adopt and Go” for making decisions regarding internal processes and IT systems. Rather than debating for months about whose processes were best, they simply agreed on one and went with it …
 
Is Culture Clash Really The Cause Of Your Post-Merger Integration Problems?

Is Culture Clash Really The Cause Of Your Post-Merger Integration Problems?

Corporate culture often catches the blame when the post-merger integration process runs into trouble. But mergers produce an array of organizational problems that have nothing to do with culture conflict per se ...

 
Post-Acquisition Customer Survey

Post-Acquisition Customer Survey

About 100 days after Close, it’s a good idea to take the temperature of the two companies’ customers. Chances are they may have experienced some turbulence caused by the transition …
 
Status of Post-Merger Integration Guiding Principles

Status of Post-Merger Integration Guiding Principles

Status of Integration Guiding Principles 

Live our values — no compromise
People think that overall the leadership teams are exhibiting values

Work together — no “us and them”
Still "pockets" of dominant Target and Acquirer groups

Act with urgency — make decisions quickly
Still major concerns around the day-to-day decisions are too slow…
Post-Merger Termination and Survivor Meetings

Post-Merger Termination and Survivor Meetings

Agenda

  • Communications for April/May
  • Termination Impact Matrix
  • Business Rationale for Termination Actions
  • WARN Act (Worker Adjustment & Retraining Notification Act) – Fresno only
  • Previous Severance Packages
  • Current Severance Packages
  • Termination/Survivor Meetings by Site . . .
Manage Employee Turnover After an Acquisition

Manage Employee Turnover After An Acquisition

A direct by-product of the acquisition integration process is an increase in employee turnover. It’s a fact of life that, whether planned or not, there will be attrition …
 
Information Technology Merger Integration Progress

Information Technology Merger Integration Progress

Content

IT Integration Standardization Phase IT phases, 
IT Integration Process Enablement Phase
Progress - Task Group
IT Integration Phases
IT Integration Punch List
Overall Progress
Post Merger Integration Major Initiatives by Work Stream

Post Merger Integration Major Initiatives by Work Stream

Work Streams

Human Resources
Communications
Culture
Finance and Accounting
Legal

 
Post-Merger Integration Steps on Timeline

Post-Merger Integration Steps on Timeline

Integration Steps

  • Analysis and Initial Plans
  • Approval
  • Design New Organizational Plans
  • Implementation Planning
  • Implementation
  • All Steps by Month

Playbooks: Day 1 - Day 180

Playbooks cover image
Acquisition Integration Playbooks: Day 1 - Day 180

Tools

M&A Synergy Best Practices

M&A Synergy Best Practices

M&A realization best practice tips

  1. Assign synergies to accountable owners and then hold them to a plan 
  2. Follow up on agreements on planned measurement approaches and their timing 
  3. Ensure initiatives are supported and linked to integration related projects 
  4. Manage cross-functionally to ensure costs are not simply shifted to other parts of the business …
Strategic Score of Each Integration Initiative

Strategic Score of Each Integration Initiative

A strategic score is assigned to each of 144 workstream initiatives in a cross-border acquisition integration.

Columns on Excel spreadsheet for each Initiative:

Work Stream, Responsible, Execution by Day 1, Urgency: Hi/Medium/Low, Impact: Hi/Medium/Low, Strategic Score, Ranking in Original Top 10, End State, Impacted Countries, Project Structure, Led By Accountable, Reporting to IMO 
M&A Synergy and Cost Estimates

M&A Synergy and Cost Savings Report Templates

Excel spreadsheets to track synergy estimates categorized as labor and non-labor, required and discretionary (strategic vs. nonstrategic).
M&A Cost Synergies Report

M&A Cost Synergies Report

M&A Cost Synergies Excel Template plus Example of Completed Template

Instructions for Cost Synergy Template       

1) Log each integration activity that increases or decreases headcount and/or expenses with projected time frames.   

2) Use "Assumptions and Notes" to describe each integration activity in more detail.

3) Notes regarding general accounting treatment:

  1. Severance for reductions in Acquiree positions are generally capitalized as part of the purchase price (if the reduction is made within one year).
  2. Severance for reductions in Acquirer positions are expensed when employees are notified ...
Company Merger Letter to Customers

Company Merger Letter to Customers

Dear Joe,

We are delighted to inform you that our company is merging with Dodson, Inc., a leader in our industry. There will be minimal disruptions to our business due to the change in ownership. Our leadership team, our headquarters, and our products will remain the same. That means no interruptions in service to you.

Our new owner has the funding to grow our business in a way that will help us realize our full potential and serve you even better in the future ...

 
M&A Integration Weekly Status report

When and What to Report for a Post-Merger Integration

What do you report?
Each team member will provide the following to the M&A Task Force leader: Key Actions/Accomplishments During the Past Week, Key Issues/Decisions Required, Potential Solutions/Help Needed, Next Steps/Actions

How is it reported?
Task Force Leaders compile the individual team member reports into a team report and submit it weekly to the IMO. Alternatively, Task Force Leaders may bring the team's report to a regularly scheduled IMO meeting ... 
Post Merger Integration Scorecard

M&A Integration Scorecard Template

Excel Spreadsheets

10 Instructions

  1. The latest version of the Integration Scorecard/Milestones will be sent to you via email each Monday. This version will reflect all updates reported through 5:00 pm (Central) the previous Friday.
  2. Send all weekly updates to Bill Smith at bsmith@acquirer.com
  3. Make your updates directly to the latest version of the Scorecard/Milestones ...
Steering Committee Post-Merger Integration Dashboard

Steering Committee Post-Merger Integration Dashboard

The steps to create an integration scorecard and the categories to cover, plus an example
Estimated Synergies

Estimated M&A Synergies Report

Report template includes conservative, optimistic, and most likely synergy estimates plus their basis for calculation, underlying assumptions, and time frame.

IMO Close Out

Post Acquisition Integration Process: The End-State Transition

Post-Acquisition Integration Process: The End-State Transition

How to hand off remaining activities:

  • Document deadlines and deliverables associated with the remaining open items
  • Provide access to all documentation on the project
  • Provide a list of all contacts and stakeholders involved in the project
  • Provide a full understanding of what has to be done, by when, and by whom . . .