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Post Merger Integration Checklist covers over 110 integration tasks in the areas of synergy tracking, chart of accounts, cash management, accounting policy variances, accounts payable, and accounts receivable.
Synergy Tracking
| Identify finance team members who will track synergies |
| Create synergy tracking model templates |
| Develop ongoing status reporting format and timing |
| Monitor and report synergy results |
| Link synergies to budgets and mosify budget by synergy values |
Additional Set of Books
| Obtain a copy Acquiree's chart of accounts (COA) |
| - Modify Acquirer COA to incorporate Acquiree COA values |
| Set up mirror entities in OFA |
| Create ledgers for each of the Acquiree's subsidiaries. |
| Map the Acquiree's ledger to the Acquirer's COA. |
| Create seperate roll-ups for the Acquiree's entities, Acquirer's historical and combined company |
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 |
| - Develop a comprehensive list of outstanding commitments |
| * Property purchases |
| * Project expansions |
| * Operating lease obligations |
| * Off-balance sheet transactions |
| - Assess dollar amount associated with each commitment |
| - Determine if plans need to be made to prepare for future financial commitments |
| Determine if Firm B has excess cash and if so, develop a plan for the excess cash |
| - Plan for the integration of the Firm B's cash into Firm A's centralized cash account |
| Determine how Firm B's short-term and long-term investments will be handled |
| - Develop a plan for disposing of investments, if required |
| Work with compliance to ensure proper reporting of investment reports |
| Open new bank accounts and close pre-transaction bank accounts |
| - Communicate account status with individuals who have signing authority |
| - Transfer bank accounts, wire transfers, banking agreements and other account signatories, as necessary |
| - Determine who will be authorized for wire transfers, account signatories, etc. |
| Consolidate treasury, banking and investments under Firm A control |
| Determine whether consolidation will result in any reduction in workforce |
| - Coordinate any reduction in workforce with organization Design and Staffing Team |
| Fully consolidate treasury functions |
| - Contact bank personnel that will assist in opening new accounts |
Accounting Policy Variances
| Obtain inventory of Acquiree's accounting policies |
| - Evaluate the accounting treatment variances |
| * Revenue recognition |
| * Cost of sales recognition and matching |
| * Liabilities and contingencies |
| * Receivables |
| * Impairment |
| * Capitalization policies |
| * Property ownership |
| * Due diligence inventories |
| * Income tax provision |
| * Property tax valuation and exposure |
| Determine plan for migrating Acquiree to Acquirer's policies & procedures |
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