Step 9: Develop M&A Project Integration Plans

An M&A project integration plan outlines exactly how and when major resources, assets, and processes of the acquiring and acquired companies will be combined in order to achieve the goals of the deal. 

Acquirers should follow a proven post merger integration planning methodology (playbook) to define the integration steps and activities so that people in both organizations can see the work ahead as logical and achievable.  The clarity from a carefully crafted M&A integration plan helps align expectations and replace employee skepticism with optimism.

In this section of our web site, we provide many M&A integration playbooks from successful acquisitions. These Word and Excel documents can be easily downloaded and customized for your acquisitions.

We also offer PowerPoint presentations that cover a wide range of topics such as M&A integration team meetings, Day 1 preparation, detailed planning deliverables and their timing, and functional team plans.

Plus, our eMerger software is packed with more than 80 post merger integration planning tools, templates, checklists, matrices, and examples of task force planning deliverables.

Note: Before you develop your plans, please make sure you have completed Step 1 of the integration planning process.  Watch Step 1 video and review What Every Acquirer Should Know about M&A integration.

Check out our answers to FAQs about M&A Integration Plans and Strategies.

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The 5 Critical Elements of an M&A Integration Plan
The 5 Critical Elements of an M&A Integration Plan

M&A integrations slow to a crawl when the endgame and the tasks to get there are vague, undetermined, or not communicated.  People tend to shift into neutral and operate with a lower degree of intensity when the path ahead is foggy.

Speed and high performance in M&A are byproducts of clarity. Integration teams build momentum and cover ground at a much faster clip when five areas are clearly defined in their plans.

1. End States

Acquirers should not begin integration planning without first defining their end states.

A few examples of end states . . .
 

When Big Guys Buy Small Fries: The 10 Rules to Follow
When Big Guys Buy Small Fries: The 10 Rules to Follow

The integration of a small, well-run company often requires a light touch strategy. In those situations, follow these 10 rules to achieve the best results:

1.  Turn off "integration autopilot"

Over time, serial acquirers develop detailed procedures and checklists for running efficient integrations. That can work very nicely, just as long as the same tactics are not blindly applied to all deals, no matter their size.

2.  Don't "wing it"

A light touch integration strategy does not mean no touch. Processes always should be implemented even on little deals, to define goals and time frames, track progress, and hold people accountable … 
 

What's going through the mind of an integration manager?
So There's a Deal Cooking? We May Know What's Going Through Your Mind

You have a company in play. There’s a lot of money at stake here. People are watching. And you’re under the gun to make it work. A few months from now you’ll be the hero or the guy they hang. Perhaps you think the M&A integration will be one of the most complex projects you have ever tackled. And you are worried because you are already stretched pretty thin and short on resources.

What’s going through your mind?

The more you mull over the merger, the more questions you have. The unknowns bother you like a swarm of aggressive mosquitoes on a hot, summer evening:

  • Is the integration budget too tight?
  • Are deadlines too aggressive?
  • How long will it take integrate systems …
Acquisition Integration Accounting Checklist
Acquisition Integration Accounting Checklist

Acquisition Integration Accounting Checklist cover over 110 integration tasks for synergy tracking, cash management, accounting policy variances, accounts receivable, and accounts payable.

Cash Management:

Examine whether cash on hand has historically met seasonal needs of the Target
Cash requirements - any potential excess cash above regulatory requirements and/or marketing/operating considerations

Identify number and type of new accounts that need to be opened at Firm A's banks
    -  Assess the number of new accounts that need to be opened
    -  Determine type of accounts to open
    -  Determine which accounts Firm B can write checks on
    -  Identify who should have signing authority on new accounts
    -  Contact bank personnel that will assist in opening new accounts

Identify and assess nature of outstanding commitments that do not show up as liabilities on the balance sheet...
M&A Integration IT Checklist
M&A Integration IT Checklist

M&A Integration IT Checklist covers these areas: Applications, Operations, I.T. Organizational Design & Transition, Security & Access. Network Infrastructure, Enterprise Technology,  Finance, and HR. 

Applications

  • Transition SharePoint(web/collaboration) from 3rd party to Acquirer governance
    • Shadow/train (web, Procurement?)
    • Transition business control of Target Co.*.com
    • Migrate Target Co. SharePoint instance
  • Transfer knowledge on email Journaling (MX) service and requirements
  • Transition Imaging - CIS/Viewpoint (Carla) to Acquirer governance

 
Payroll Merger & Acquisition Checklist
Payroll Merger & Acquisition Checklist
Payroll Disbursement Bank Accounts
Coordinate with HR to identify payroll strategy for each country (e.g. Firm A payroll, outsource payroll vendors beginning Day 1)
 
Coordinate with Legal and HR to identify where payroll disbursement accounts will be needed by country
 
Create plan in conjunction with Treasury to open any new payroll disbursement accounts by Day 1 in conjunction with legal entity strategy and setup
 
Identify all Firm B payroll disbursement accounts by country
 
Create plan to close Firm B payroll disbursement accounts or transfer to Firm A legal entities and change bank signatory names by Day 1
 
 
Payroll and Expense Disbursements ...
Acquisition Integration Finance Checklist
Acquisition Integration Finance Checklist

Newco - Finance Organization

  • Schedule a work session with key stakeholders to assess functional redundancies and begin construct of attrition plan
  • Build roles/responsibility matrix
  • Construct a draft organization chart
  • Conduct follow up meeting with key stakeholders to review draft and gather edits
  • Schedule and conduct presentation meeting with decision making executives to present organization chart and gather further edits
  • Revise new org chart
  • Construct memo with HR to have an executive publish new org chart
  • Schedule a department meeting to introduce new org chart/ R&R for review
  • File new org chart into corporate archives and policy records
M&A Integration Playbook - $20 Billion Acquisition
M&A Integration Playbook - $20 Billion Acquisition

 

The 61-page M&A integration playbook specifies over 900 integration tasks for the following work streams:

Finance: Treasury | SAP Integration | Financial Close | Operational Reporting | Financial Reporting | Tax | Inventory Accounting | Acquisition Process | Investor Relations | Synergy Tracking | Organization Design

Information Technology: Infrastructure | IT Integration Program | Day 1 | HR | Legal | Corporate | Organizational Structure | Finance

Human Resources: Compensation | Retention | Deferred Comp | Long Term Incentive Plan | Severance | Gainsharing | Health & Rx | Dental | EAP | COBRA | Life | Com Plan | HSA | LTD | STD |401k | Pension | LOA | Com Day 1 | Com Day 2 | Drug Testing | Recruiting | Data Conversion | Payroll Timekeeping | Org Structure | Immigration | Workers Comp. | Training & Development | Compliance | Safety | Policies | Labor Relations | IT Help Desk | Educ. Assistance | Travel & Expense

Corporate: Day 1 - Employee Communications | Day 1 - Corporate | Day 1 – Safety | Corporate Giving | Communications ...


 

 

 
Day -1- Employee Commmuncations
Day 1 Employee Communications M&A Playbook - $1.6 Billion Acquisition

Sixteen page document that includes answers to seventy-five employee FAQs, plus communication guidelines, and important talking points and messages.

Contents Page
Communication Guidance 3
Key Messages for Employee 4
Employee Talking Points 5
Employee FAQs 7
Integration Approach 10
Impact on Operations 11
Compensation, Benefits, and Incentives 13
Sales Professionals FAQ 15
Question Specific to New Employees 16
Acquisition Integration Playbook - $8 Billion Deal
Acquisition Integration Playbook - $8 Billion Deal

The Acquisition Integration playbook includes the following nine sections:

M&A integration playbook

Each section of this playbook represents a phase of the integration. For each phase, the playbook includes the following:

  • Key activities in detail in sequence
  • Success factors/lessons learned
  • Links to tools
  • Links to PowerPoint presentations
100 Day Integration Plan - $900 Million Acquisition Playbook
100 Day Integration Plan - $900 Million Acquisition Playbook

54-page playbook includes tasks and long detailed checklists on these integration work streams:

  • Due Diligence
  • Human Resources
  • Technology
  • Finance
  • Communications
  • Business Development
  • Legal

Everything is tied together in easily customizable excel spreadsheets that auto-calculate total budget costs and synergies. Plus, the documents auto-display timing of all major activities on Gant charts.