Videos: A Q&A on M&A

The Who, What, When, How, and Why of Merger Integration

Fifteen videos are organized under the steps of the world-class M&A integration methodology taught in PRITCHETT's Merger Integration Certification Workshop. 

PRITCHETT Merger Integration Certification Workshop Attendees and Website Subscribers can access all the videos. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, tools, and templates on MergerIntegration.com.

Step 1: Define M&A Integration Strategy and Guiding Principles

What Are the Five Types of Integration Strategies?
What Are the Five Types of Integration Strategies?

1 minute 43 seconds

1. Autonomy: Acquired company retains its independence

2. Best of Both: Additive from both sides

3. Transformation: Both companies find new ways of operating ...

Step 2: Determine M&A Integration Governance

What is the Role of the IMO (Integration Management Office)?
What is the Role of the IMO (Integration Management Office)?

2 minutes 54 seconds

"The Integration Management Office brings all the processes: how you collaborate cross-functionally, how you address and escalate issues for resolution, how you report and update executives on status. The IMO drives the pace, tackles ad hoc issues, tracks progress, gets feedback, does after-action reviews.  Essentially, the IMO is your home base for all integration activity ... 

Step 3: Conduct Joint Integration Management Office (IMO) Meeting

What Is an Example of a Good IMO Schedule?
What Is an Example of a Good IMO Schedule?

2 minutes 31 seconds

"Block out on calendars in advance and cycle through the same meetings each week.
Example

  • Monday: IMO updates reports and dashboard
  • Tuesday: Report outs to Steering Committee and Board
  • Wednesday IMO Core Team Meeting
  • Thursday: 1 on 1 meetings with Functional Leads
  • Friday: Issue status review. Updates input by functional teams into system ..."

Step 4: Provide Post Merger Integration Training

Who Should You Try to Win Over in a Merger? What Percentage of the workforce Can You Expect to Be Defiant?
Who Should You Try to Win Over in a Merger?

1 minute 42 seconds

"Some 20 percent of the people in the acquired company are “merger-friendly.”  They’re clear advocates who willingly embrace the combination. Another 50 percent of the folks sit on the fence.  They assume a so-called neutral position. The remaining 30 percent are the resisters.  They’re antagonistic toward combination. Don't try to win over the resistors.  Spend your time and energy on the change advocates and fence sitters...

 

Step 5: Develop Post Merger Integration Risk Management Plan

What Are Critical IT Day One Activities and Risks?
What Are Critical IT Day One Activities and Risks?

1 minute 47 seconds

"New payroll processing, redirection of legacy phone numbers, conversion of sales and customer support processes, conversion of legacy email systems, ...

The success of Day 1 often rests on having a Rapid Response team of IT professional available to address risks and issues ..."

If IT is already running at full capacity before the integration, the additional work can be overwhelming." 

 
What Should You Do When Synergy Estimates Are Inflated?
What Should You Do When Synergy Estimates Are Inflated?

1 minute 46 seconds

"Map synergy activities to integration work streams. You may find the synergies are not tied to a work stream and accountabilities are not assigned. Verify responsibility, timing, amounts, and CTA ... Review gaps with senior management. Bad news never gets better with age ..."

 
What Questions Should You Ask to Determine Performance Management Risk?
What Questions Should You Ask to Determine Performance Management Risk?

1 minute 42 seconds

Differences in performance management between two companies can cause conflict and harsh feelings. Questions to assess this risk:

  • Is there a standardized performance management program?
  • How often are employees evaluated (e.g., monthly, quarterly, annually)?
  • What are the rewards for exceptional performance? Consequences for poor performance? ...

 

Step 6: Develop Post Merger Integration Culture Plans

Cultural Audit?
Who Should Perform the Cultural Audit and Report the Findings?

2 minutes 16 seconds

"Not necessarily HR people. Sometimes, project managers and directors can perform the assessment. Whoever does it, they should be well-respected ... Sometimes, only an outside external consultant has the necessary credibility to communicate the findings to top executives ..."
What Questions from the Operating Style Analysis Are Particularly Useful?
What Questions from the Operating Style Analysis Are Particularly Useful?
Free
2 minutes 52 seconds
  • "What are the unwritten rules? A lot of things get accomplished in organizations through unwritten rules, side channels and work arounds.
  • What gives a person power here? It gets to the core of what is valued and what makes people successful. Sometimes it is not good behavior.
  • What do people hold sacred about the culture ..."

 

 

Step 7: Develop Post Merger Integration Communication Plans

Why Do "Staggered Experiences" Foul up M&A Communications?
Why Do "Staggered Experiences" Foul up M&A Communications?

2 minutes 12 seconds

"Executives are in New Beginnings.They want to communicate the vision, the inspiration about how great the merger will be. Initially, employees are in very a different place. They have not had as much time to digest the news. They want information much more than inspiration. They tend to tune out the inspirational talk ..."  

Step 8: Develop Post Merger Staffing & Retention Plans

What Key Guidelines Should Leaders Follow in a Merger?
What Key Guidelines Should Leaders Follow in a Merger?

2 minutes 24 seconds

12 M&A Integration Guidelines

  1. "Actively go looking for bad news ... if you are not hearing about any problems, then issues are remaining buried. 
  2. Say “no” to slow. ... operate with urgency
  3. Set and manage expectations appropriately ... when expectations are violated people cry foul
  4. Use “soft currency” to re-recruit key talent ..."

Step 9: Develop M&A Project Integration Plans

How Should You Prioritize Workstreams?
How Should You Prioritize Work Streams?

7 minutes 25 seconds

"It really depends on the rationale for each specific deal, but in general, mark a work stream as high priority if it has a significant number attached to it – projects or initiatives that will achieve savings and benefits from the integration. Also, any areas where maintaining two versions of a similar process, policy, or specific way of doing business will cause disruption and slow the mIgration to NewCo ..."

Step 10: Execute Acquisition Integration Plans (Includes Day 1 Plans)

What Is an M&A Integration End State? When and How Should Teams Hand Off Remaining Activities?
What Is an M&A Integration End State? When and How Should Teams Hand Off Remaining Activities?

2 minutes 52 seconds

Every integration needs to have an end. Managing the End-State Transition can be just as important as managing the rest of the integration.

What is End-State?

The point in the integration when:

  • The bulk of planned integration activities have already been accomplished
  • The IMO processes can be ramped down and dedicated IMO personnel scaled back or redeployed
  • The remaining open integration workstreams and issues can be transitioned to a normal operation’s function

Step 11: Capture M&A Integration Lessons Learned

Which M&A Integration Mistake is the Most Common?
Which M&A Integration Mistake is the Most Common?

55 seconds

 "If no formal integration oversight authority is established  ... if there is no Integration Management Office (IMO), there is likely little planning accomplished before close. When integrations fall short of their objectives, inadequate pre-close planning typically contributes to the failures."

 
Who Should You Interview and What Should You Ask to Capture Lessons Learned?
Who Should You Interview and What Should You Ask to Capture Lessons Learned?

1 minute 23 seconds

"Initiate a formal process to collect feedback from IMO participants, acquired company employees, senior management, IMO team members, employees (both companies), and consultants involved in the integration.

In particular, facilitate a “Lessons Learned” meeting with IMO participants and functional leads and ask these questions ..."