The Essential Post Merger Integration Guide (Free Downloadable Slides)

Post-merger integration is the process of combining two companies into one after a merger or acquisition. Merging companies who follow a proven integration process with defined phases, steps, and deliverables are more likely to achieve their objectives. Those objectives include maximizing the potential benefits of the deal and minimizing . . . Download PPT

The rationale for a deal helps determine the type of post-merger integration to pursue. All post-merger integrations are one or more (a combination) of these five types:

1. Best of Both
   Additive from both sides

2. Transformation
   Both companies find new ways of operating . . . Download PPT

Distribute the work in these phases with each phase informing the next:

1. High-Level Planning

Objectives:

• Finalize all core integration planning requirements & direction

Inputs:

• Deal thesis, target operating model, diligence information, executive . . . Download PPT

1. Define Integration Strategy and Guiding Principles
   Facilitate executive session with senior leaders to determine planning direction and clarify integration goals, the extent of the integration, assumptions, non-negotiables, success metrics, and . . . Download PPT
   

Integration Management Office

Responsibilities

• Drives development of the overall integration plan including all the integration projects, communication plans, and achievement of synergy benefits
• Defines and manages your integration processes including functional . . . Download PPT

• Drives development of the overall integration plan including all the integration projects, communication plans, and achievement of synergy benefits
• Defines and manages your integration processes including functional work plan reviews, cross-functional collaborations, issue management plans, and executive . . . Download PPT

• Serve as Integration Lead of the respective functional (time commitment will vary by the size and complexity of the integration)
• Develop, track, and report functional work plan progress and issues to the IMO
• Ensure completion and adherence to the scope identified in the Integration Project . . . Download PPT

• SUBJECT MATTER EXPERT
  
  
• DECISIVENESS
  
  
• A WILLINGNESS & ABILITY TO TAKE CHARGE
  
  
• A KEEN SENSE OF URGENCY
  
  
• FLEXIBILITY AND THE ABILITY TO IMPROVISE . . . Download PPT
  
  

1. Start Planning Prior to Close
   When planning does not start before close, an integration starts more slowly and takes longer.

2. Define the Integration Strategy
   Executives should communicate a clear integration strategy early and before teams begin detailed planning . . . Download PPT

1. Sales

   • Area Measurement:
     • Joint sales
     • Referral sales
   • Purpose: To identify the number of joint sales and referral sales generated
   • Methodology: A short (10 min.) verbal or written questionnaire given to new customers on the reasons . . . Download PPT

Post-merger integration costs typically range from 3% to 10% of a deal’s value. The actual percentage depends on the scope of the integration, the operating differences between the merging entities, the number of changes that will occur, and the magnitude of those changes.

These are many of the most typical types . . . Download PPT

How do you capture synergies . . .

• Personnel Reductions
• Increasing Sales
• Sourcing/Purchasing

While doing the integration work . . .

• Customers
• Management/Employees
• Suppliers . . . Download PPT

1. Cultural Conflict: Major cultural differences between merging entities can easily lead to friction and misunderstandings that negatively impact employee morale, productivity, and talent retention.
2. Synergy Shortfalls: Merging companies fail to achieve cost and revenue targets because of unrealistic synergy estimates, inadequate integration planning, poor integration execution, and unexpected . . . Download PPT

Overpayment. Some companies feel they must overpay to block a competitive bid or to protect their turf. But when too much is paid, it can kill any chance to achieve a satisfactory return on investment.

Lack of strategic clarity. Companies often acquire for the wrong or unclear reasons. For instance, organizations may . . . Download PPT

When M&A integration teams begin planning without clarity from top management, they are more likely to make the wrong assumptions, draw different conclusions, and veer off on tangents.

Before the integration teams begin detailed planning, the executive team should align . . . Download PPT

Game Plan

• Employee playbook
• Customer playbook
• Supplier playbook

Resource Guide

• Company overview (scale, vision, principles)
• Leadership info./org. chart
• "What's Changing" sheets
• Key contacts by function
• Day 1 critical . . . Download PPT

M&A Communication Guidelines for Acquiree Interactions

• Answer or react to all questions
• Consider the entire audience
• Don’t be a know-it-all
• Understand sensitivities to the “Acquirer’s way”
• Encourage questions (make one up, if necessary, to get started)
• Understand the natural inclination to lose focus on the customer
• Understand your behavior; must model . . . Download PPT

Day One Expectation Setting

• Communicate ahead of time what people can expect to “work” on Day One and what will come later

• Coordinate closely with other teams to accurately capture Day One objectives

  • Email
  • Intranet Access
  • Policies

• Articulate . . . Download PPT

Key Areas & Deliverables

• Team Leads Identified
• SMT Direction Finalized
• Communication Update
• Integration Kick Off/Process Starts
• Team Charters
• Team Structure & Operating Cost Recommendations to Accountable SMT Member (Business)
• Team Structure & Operating Cost Recommendations to Accountable . . . Download PPT

The prohibited pre-close coordination between companies that are planning to merge or be acquired before they have received the necessary regulatory government clearance.

Legal Requirements — No Jumping the Gun Prior to Close

• Neither company can attempt to exercise control over the other
• We cannot exchange competitively sensitive information . . . Download PPT