Governance Plan – Organization Chart
Governance – Change Control
Governance – Line of Sight
Governance – Status Reporting
Human Resources Plan
Risk Management Plan
Information Technology Summary
Human Resources Summary
Human Resources Plan – MBO’s and Incentives
The combination of organizations will expand current business markets, geographies, and enable diversification into new end-markets. The transactions' “Deals Drivers” have been established by the company prior to the start of the integration. These key objectives will be used to measure the level of success throughout the integration phase. Three areas of focus will drive and define a “successful” integration:
- Market Expansion – New geographies
- Diversification Growth – New markets
- Cost Synergies – Expense reduction, enabled by eliminating redundancies in staff positions, buildings and operational systems and lower benefits cost.
The details of how revenue increase will be accomplished is described in the Growth Strategy work plan. The reduction to overall company expense is the integrations second most important Deal Driver. The chart below was compiled from the work stream leaders’ work plans. The chart contains the cost synergy categories as listed in the transactions pro forma and describes the detail of how these expense reductions will accomplished and their estimated value.
Financial Synergies: Description
- Workforce: Phase 1 Reduction in Workforce (RIF), 15 persons identified
- Building Lease: Restructuring of Acquired Company building lease
- Benefits Plan: On boarding of all Acquired Company employees to the existing self-insured Acquirer benefits plans
- Insurance: Reduction of general liability and risk insurance by combining policies
- Bonding: Reduction in bonding costs by combining policies
- Shareholder Executives: Release of 3 Acquired Company non-operational shareholders
- Capital Equipment: Reduction in procurement costs of vehicles thru negotiated vendor discounts
- Procurement: Reduction in the cost of purchasing parts, tools, materials and supplies thru negotiated vendor discounts
- Misc. Other: All smaller cost reductions as described in the detailed work plans...