M&A Integration Success Metrics

Agenda

• Success Metrics Should Be 
• Sales and Costs
• Retention and Company Image
• Internal Communications and Training

Success Metrics Should Be…

• Relevant to key M&A issues and goals
• Simple to gather, compile, analyze and report
• Easy to understood
• Taken from existing measuring processes whenever possible
• Sustained until the integration efforts are completed and results are satisfactory
• Balanced between integration measures and operational measures.

M&A Integration Sales and Costs Success Metrics

1. Sales

   • Area Measurement: Joint Sales and 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 they chose the company past and future transactions, Reports sent to Merger Team.
   • Key Information Obtained: Number of joint and referral sales for products or services, Number of new customers or clients due to the merger
   • Potential Source for Questionnaires given by: Sales or Account Managers, Consultants and Data from Integration teams on sales
   • Frequency for Questionnaire: As occurs and for Reports and Data: Monthly

2. Costs

   • Area Measurement: Operating cost savings
   • Purpose: To identify the cost savings achieved through joint operations
   • Methodology: Tracking and roll-up of all cost savings (geographic and functional)
   • Cost savings in: labor, overhead, other costs (e.g. marketing)
   • Potential Source: All Task Forces
   • Frequency for Report: Monthly ...