M&A Tools and Templates

The merger integration planning tools and templates (more than 100) are organized under the steps of PRITCHETT's world-class M&A integration methodology.  

PRITCHETT Merger Integration Certification Workshop Attendees and Website Subscribers can access all the tools and templates, not just the free ones. They can also access everything else-the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, and videos on MergerIntegration.com.

(Partial List - See eMerger Software for more tools and templates)

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

Step 2: Determine M&A Integration Governance

M&A team Roles and M&A leaders
M&A Team Roles and M&A Leaders During an Integration
Free

Steering Committee

The Steering Committee is typically made up of two to seven senior executives from both companies. Members serve in an oversight role for the entire M&A integration by providing sponsorship, making key strategic decisions, and approving integration plans.

Integration Manager

The Integration Management Office (IMO) is led by the Integration Manager, a senior executive in the acquiring firm. The Integration Manager is responsible for facilitating the work of the Integration Management Office, providing guidance and direction to the  Work Streams, and reporting status to the Steering Committee. The Integration Manager will spend 80- 100% of their time in this role.

Integration Management Office Team Members ...
RACI
Governance M&A RACI Matrix

An example of a RACI (Responsible, Accountable, Consulted, Informed) matrix that identifies roles and responsibilities for Steering Committee, IMO, Functional Teams, Synergy Owners, and Accounting.

  Steering Com. IMO Funct. Teams Synergy Owners Accounting
Drives development of the overall integration plan including all the integration projects, communication plans, and achievement of synergy benefits       I  R/A    C     C  
Defines and manages integration processes including functional work plan reviews, cross-functional collaborations, issue management ...       I  R/A     I      I  
Example of completed governance document
M&A Governance Example and Governance Word Template

2-page example on how the the M&A Steering Committee and Integration Team will work together to determine governance, their reporting relationship, the process for making decisions, resolving issues, etc.

Communication and Confidentiality Guidelines

  • The Integration Team Leader will be the point of contact to the Steering Committee as well as to the Task Force Leaders. The Integration Team Leader will meet with the Steering Committee each Tuesday at 9am in Bldg. 200, Conference Room A.
  • The Integration Team Leader will report progress and escalate any issues/decisions that require senior-level input.
  • Task Force Leaders and Task Forces will report to the Integration Team Leader every Friday through their weekly status reports. Reports should be emailed to the Integration Team Leader ...

 
Invitation to Functional Team Leaders and Overview of Integration
Invitation to Functional Team Leaders and Overview of Integration

Two letters, one from the CEO and and the other from the Integration Manager, emailed to team leaders that provide information on the role of team leaders, the hierarchy of teams, the mission, team guidelines, synergy targets, scope of the integration, meeting schedule, and team launch meeting.
M&A Integration Meeting Cadence
M&A Integration Meeting Cadence

The IMO should make sure the various integration teams cycle through the same meetings at the same time each week. By adhering to a disciplined schedule, teams maintain focus and discipline. Otherwise, the integration may get de-prioritized and organizing meetings will become like herding cats. 

The following meetings are on a set schedule: IMO, Sales, Manufacturing, HR, Finance, IT, Legal, Corporate, Carve Out Separation, Steering Committee, Shareholder Update, Board Meeting.
Clean Team: Competitively Sensitive Information
M&A Clean Teams: Competitively Sensitive Information

Confidential Information

Deal Team 

  • Industry reports or analysis prepared by third parties
  • General information regarding current products and services
  • Historical aggregated financial data, including aggregate revenues
  • Information regarding the organisation of systems and processes (e.g. "back office" systems and processes like billing, IT and accounting)
  • General information on health, safety and environmental matters
  • General information on corporate structure and the structure of management and personnel
  • Information that is in the public domain

Clean Team ...

 

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

How to Create an M&A Integration Team Charter, Plus Charter Example
How to Create an M&A Integration Team Charter, Plus Charter Example and Template
Free

Instructions on how the Integration Team creates a Charter to document the mission, goals, scope, boundaries, and deliverables of the team. Plus a 2-page Charter example and 2-page Word template follow the instructions.

How to Use

  1. The Integration Team Leader facilitates the team Charter discussion. S/he should use a printing white board or flip chart, paper and pens to record team members' thoughts and contributions as well as decisions made by the team.
  2. When decisions about the team Charter are complete, the Integration Team Leader should document the decisions using the Integration Team Charter template ...
Creating an HR Integration Team Charter
Case Study Exercise - Creating an HR Integration Team Charter

9-page exercise that includes background information on the Human Resources functions of two merging companies, HR organization charts, profiles of members chosen for the integration HR team, and a partially completed HR team integration charter to be completed by the reader.

Team Scope/Objective

  • Integrate compensation, benefits, stock options plans, employee development, and recruiting & retention processes. Address employee issues about the integration in a highly responsive, timely manner. Stay within budget allocated to the HR Task Force (which is to be determined).
Product Development Integration Task
Case Study Exercise - Creating a Product Development Integration Team Charter

9-page exercise that includes background information on the product development functions of two merging companies, product development organization charts, profiles of members chosen for the integration product development team, and a partially completed product development team integration charter to be completed by the reader.

Team Scope/Objective

  • Integrate software development efforts. Improve quality and instill process discipline into operations. 
Creating Information Technology Integration Team
Case Study Exercise - Creating an Information Technology Integration Team Charter

9-page exercise that includes background information on the information technology functions of two merging companies, IT organization charts, profiles of members chosen for the integration IT team,  and a partially completed IT team integration charter to be completed by the reader.

Team Scope/Objective

  • Integrate IT infrastructure as quickly as possible to support customers and core business processes.  Also, integrate IT systems to enable SOX compliance.
Creating a Sales Integration Team Charter
Case Study Exercise - Creating a Sales Integration Team Charter

9-page exercise that includes background information on the sales functions of two merging companies, sales organization charts, profiles of members chosen for the integration sales team, and a partially completed sales team integration charter to be completed by the reader.

Team Scope/Objective

  • Integrate sales and marketing processes within 3 months.  Automate the sales reporting process and train the sales staff.  Achieve cross-selling synergies.
Human Resources and Organization Design Charter
Human Resources and Organization Design Charter
Free

Includes charter statement, team scope (compensation, benefits, performance management, staffing, training, policies, etc.), key questions, deliverables, and critical success factors.

Charter Statement
Identify and define the future state OD/HR organization, philosophies, policies, procedures, programs, and support systems. In addition, identify high-level activities, tasks, and costs required to combine the two organizations into the future state organizations. Special attention will be given to high-priority (Day 1) items as well as milestone components to reach the decided end state.
Agenda of Joint IMO Kickoff: Acquirer and Acquired Company
Agenda of Joint IMO Kickoff: Acquirer and Acquired Company

Kickoff Meeting of Integration Management Office: Acquirer and Acquired Company

Time         Topic

8:00-8:10  Review objectives and target outcomes of meeting                                

8:10-8:30  Ensure all participants grounded in legal rules of engagement for go forward planning activities

8:30-8:45  Transaction & Timing Update  Communicate deal status and target close date scenarios 

8:45-9:00  Overview of key deliverables, timing, R&R’s, and relevant IMO process details ...
Finance Team Charter
Finance Team Charter

2-page Word template for documenting a team charter.

Mission

To ensure the full and seamless integration of target’s finance operations into Buyer’s finance organization by Day 90 post-Close. We will utilize best practices, regardless of origin, and act with speed to capture operational and transactional value.

Our key objectives are:

  • To put in place the appropriate financial measures to gain control of the business on Day1, creating a compliant control environment, ensuring reporting accuracy, and consolidating general ledger ...
Charter (HR example)
Charter (HR Example)

HR team charter example in Excel.

Pre-Close Planning

  • Ensure individuals identified for retention; support creation of offer letters; and readiness for onboarding employees
  • Ensure plans developed to ensure readiness for Close / DAY ONE
  • International employee contracts are managed/ready for NewCo
  • Retention plan in place for all Seller employees who will not be long-term employees of Buyer
  • Recruiting plan to address new roles needed and backfills for business ...
Workstream Integration Charters for Carve-Outs
Workstream Integration Charters for Carve-Outs

8 Carve-Out Workstream Charters: Finance, Sales, IT, Legal, Manufacturing, Divestment, HR, & Communications

Finance Integration Charter

In Scope  
1. Budget Process
2. Insurance Coverage
3. Limits of Authority
4. Accounting Policies 
5. Reporting, process & tools
6. Purchase Price Accounting Exercise
 
Out of Scope
Tax and structuring activities ...

Step 5: Develop Post Merger Integration Risk Management Plan

Risk Mitigation
M&A Integration Risk Impact/Mitigation Template

Example of completed risk identification and mitigation Excel template.

Risk: Agreement delayed / production dates push into busy season 

Potential Impact: Integration work competing with regular work at busiest time of the year for sales, production, and fulfillment.

Mitigation Plan: Make decision on transferring production into 2022 and fulfill all else from west coast

Potential Cost Impact: Rent costs for Company A, delayed realization of production efficiencies ...

 
Risk-Based Preacquisition Due Diligence Review Template
Risk-Based Preacquisition Due Diligence Review Template

Template to identify and evaluate the most significant transaction risks impacting cash flows. 

The value of every business and the buyer's realized return is ultimately determined by the amount of cash flow the business is expected to generate and by the amount of risk of those cash flows occurring. Every review item described in this template is intended to be used to help prospective investors develop a sense of expectations regarding a target business' ability to generate cash flows and to sharpen the understanding of the degree of risk to which those cash flows are subject.

 
Integration Issues Form and Issues Log
Integration Issue Form and Issue Log

Two Excel templates to document and track issues

Issues are problems, gaps, inconsistencies, or conflicts that occur during the an M&A integration. Issues can include problems with the employees, technology, shortages, or any other problem that has a negative impact.  If issues remain unresolved, the integration may suffer delays and overruns. Each issue should be monitored and assigned an owner.

 
Integration Issues Risk Form and Risk Log
Integration Risk Form and Risk Log

Two Excel templates to document and track risks

A risk is an event that has not happened while an issue is something that has happened. 

As you identify each risk, determine which integration team member will be responsible for tracking and reporting it. The owner of the risk is responsible for implementing a plan to resolve a risk if it becomes an issue.

Prioritize your integration risks based on the likelihood that they will occur and the severity of the problem if they do occur.

Step 6: Develop Post Merger Integration Culture Plans

Operating Style Analysis
Operating Style Analysis (Part I)

An inquiry into the day-to-day operating fundamentals that reflect the cultural basics of how the business is run.

  1. What aspects of the way your organization operates contribute most to its success/effectiveness?

 

  1. What characteristics of the way your company operates most hamper or interfere with its ability to compete?

 

  1. List the company’s operating strengths.  (What does it do best?)

 

  1. What would you identify as the company’s operating weaknesses?  (Where is the company most vulnerable or least effective?) ...
Operating Style Analysis Part- II
Operating Style Analysis (Part II)

A survey focused on cultural traits in eight areas that are often determined to be mission-critical.

1. Spending Habits: Frugal or Free Spending
Comments regarding this issue: __________________________________________
 

2. Decision-Making Process: Deliberate or Expeditious
Comments regarding this issue: __________________________________________
 

3. Power and Authority ...
Four Levels of Change Survey
Four Levels of Change Survey

An assessment of how an organization’s culture influences its ability to function as an adaptive system.

1. Our outfit has a relentless drive to improve.

2. The attitude here is optimistic.

3. This work group exhibits a low tolerance for uncertainty and ambiguity.

4. We’re bureaucratic and rule-oriented.

5. Our work pace is fast ...
Culture Mapping Exercise
M&A Culture Assessment
Free

3-page assessment that calculates the degree of cultural differences in key areas

Listed below are a number of cultural dimensions and indices that are organized across a continuum.

Step 1: Review each cultural characteristic and place an A in the column that most closely represents your perception of the Acquirer’s culture.
Step 2: Place B in the column that most closely represents the Acquired Company’s current culture.
Step 3: Calculate the absolute difference between each rating to determine the largest culture gaps ...
Cultural Due Diligence Assessment Results
Cultural Due Diligence Assessment Results

This 14-page document includes actual responses to 17 questions about the current situation, company identity, perceived culture of both companies, and the expected changes as a result of the merger. 

1. How do people feel about being merged/acquired?

The corporate perspective is different from the field’s perspective. Here at headquarters the questions are, “Is there room at the inn?” and “Will I go to Atlanta?” In the field, people are wondering if they will have to work for less money. Some are angry that it came to this. Did the CEO and the SVP just sell us out? People’s emotions run the gamut from “How could you do this?” to “What took you so long?”

It’s no shock that we merged, but people are set back on their heels that it is this acquirer...

Step 7: Develop Post Merger Integration Communication Plans

Answers to FAQs
Answers to Rolling Employee FAQS

The 5-page example provides answers to more than 30 frequently asked questions from employees in a merger.

Q: Will my benefits change (insurance, 401k, etc.)?

A: Employees currently enrolled in the target Company benefits plans will continue their coverage under the current provisions of their benefits package.  Once your job is transitioned to New York you will receive information on COBRA that will allow you to continue their benefits for up to 18 months.

Q: Do I need to start answering the phone as an Acquirer employee?

A: No, you will continue with conducting business as usual and answering the phone as Target Company. 

Q: Will I be reporting to someone from Acquirer ...
Example of Completed Core Message Document and Template
Example of Completed M&A Core Message Document and Core Message Template

The 4-page example of a merger core message document serves as content for various M&A announcements and helps ensure consistent communications throughout the organizations. The Core Message Word template is also provided.

Right now, there are going to be more questions than answers.  Our commitment is to make decisions and come to conclusions on a comprehensive integration plan by [month, year].  Many of you will be asked to help with this planning task personally.  And even if you are not involved with planning directly, you will be asked to help with the transition by focusing extra attention on serving our clients ... 
Day -3 Through Day 1 M&A Communications Plan
Day -3 Through Day 1 M&A Communications Plan

Day -3

  • FTC gives indication that clearance is likely
  • Confirm all final communication documents are uploaded to SmartSheet

Day -2

  • FTC Clears transaction to close
  • Press release related to HSR completion
  • Issue Corporate Acquired Co Investors Press Release ...
Communication Planning Template
M&A Communication Planning Matrix

Spreadsheet identifies key elements of communication plan including stakeholders, key messages, timing, priority, and concerns. 

Excerpt:

Supplier
All current contracts remain in force and will be honored. No interruption in invoicing or bill paying process. All valid outstanding invoices will be paid timely.

Managers
No changes in existing organization, all current management positions are unchanged. Merger is good for the business and will stimulate growth, but there is work to do to integrate with new entity. Function/ department specific message as determined by responsible Executive Committee member. Key message point to be delivered to employees in groups and reinforced in
individual discussions.

Customers
Merger will strengthen company and add to its capability to deliver top products ...
Stakeholder Analysis Template
Stakeholder Analysis Template for a Post Merger Integration

Spreadsheet that includes the following columns for each stakeholder group:

  • Stakeholder concerns
  • Ability to influence 
  • Change impact
  • Activities
  • Timing
  • Ownership
  • Resource requirements

 
Acquisition Announcement to Suppliers and Answers to Supplier FAQs
Acquisition Announcement to Suppliers and Answers to Supplier FAQs

Content

Acquisition Announcement to Suppliers
Answers to Supplier FAQs

Excerpt from Supplier FAQs

  1.  What is the purpose for Global Procurement?
    To provide the largest volume opportunity for our supplier business partners.  We believe that with larger volumes the supply base’s manufacturing cost will be lower, thereby reducing our cost.
     
  2.  What are the short and long-term implications?
    Short Term - We will be focused on reducing our supply base to maximize the volume for selected suppliers. Longer Term -  We will work to integrate more with our smaller supply base, and to learn how to combine our resources with those of our suppliers.  This will include logistics ...
M&A Integration Communication Matrices by Function
M&A Integration Communication Matrices by Function

Matrices completed by five work streams on M&A integrations. Includes instructions.

Instructions

Complete the 8 columns of the communication matrix with the following information: 

Type

What type of message is being conveyed?

·       The type of announcement; the main subject of the message

Objective

Why is the message being conveyed?

·       To announce the merger/acquisition

·       To answer the “me” issues

·       To communicate the financial impact of the merger/acquisition

·       To provide reassurance and commitment to continued partnerships ...

 
Merger Communications Plan: Announcement to Close
Merger Communications Plan: Announcement to Close

Communication Plan includes over 250 tasks by Week from Announcement to Close for:

Media

Analysts

Employees

Customers & Partners

Legislators
Merger Announcement Letter to Employees
Merger Announcement Letter to Employees

TO: Employees

FROM: President

SUBJECT: Merger Announcement 

Acquirer, Inc. announces that the merger with Acquiree, Inc. is now complete. Today marks the beginning of a new era for our united companies. 

News of this merger is very positive for our customers, our employees, and our communities. The combination of our companies brings ...
Sample Merger Announcement to Employees
Sample Merger Announcement to Employees

TO:  All Employees

FROM: CEO

SUBJECT:  Merger of ABA with OCN

Today we announced that OCN Inc. has agreed to merge with ABA.  Upon closure, OCN will become part of the ABAs worldwide organization. Our combined operations will have revenue of nearly $1.2 billion and employ approximately 7,000 people around the world. 

We believe that the combination of OCN and ABA is a solid platform from which to grow rapidly ...
Answers in M&A to Employee Frequently Asked Questions
Answers in M&A to Employee Frequently Asked Questions

Answers to 43 common frequently asked questions by employees on the front-end of an acquisition.

  1. Will offices or other facilities be closed?
    For the time being there will be no changes and we will continue to go to market as we have in the past. We will begin immediately to get to know each other and develop plans to combine our businesses in the most effective way ...

Step 8: Develop Post Merger Staffing & Retention Plans

Staffing Retention Checklist
Staffing and Retention HR Checklist for an M&A Integration

The sections of the document are as follows:

  • Assessment of Turnover and Discussion of Retention Needs
  • Status update on memo regarding org. design and synergies
  • Staffing Toolkit
  • Status Update on Tier 2 Interviews and Selection
  • Job Descriptions and Professional Assessment Forms
Re Recruitment Analysis and Plan
Re-Recruitment Analysis and Plan

Document covers the four steps involved in preparing a retention plan and includes a plan template.

During mergers, people reexamine how the organization being created fits with their personal goals and ideals. As leaders, it is important to identify those individuals most critical to the success of the merger and “re-recruit” them to stay. This document is intended to give leaders a framework for organizing their thoughts on re-recruitment. The key is not to focus only on those viewed as a risk for leaving, but also on those whose departure would have a significant negative impact on the organization.

 
HR Due Diligence Tool
HR Due Diligence Tool

9-page list of data to gather and assess HR

9-page list of data to gather and assess HR

Identify potential synergies/opportunities in these categories:

  • Culture
  • Management Team
  • Employees
  • Compensation and Benefits
  • Pensions
  • Training
  • Recruiting ...

 
A Primer on Talent Assessment and Retention
A Primer on Talent Assessment and Retention
Free

3-page primer covers factors to consider and recommended steps

“AMA study found that 25% of top performers leave within 90 days of major change event”

I. Reasons Why Talent Leaves:

  • Targeted by recruiters/competition
  • Net/net perceive they are “worse off”
  • Perception of loss of sponsor/access to key decision makers
  • Changes to reporting relationships/key job responsibilities
  • Loss of compensation/benefits
  • Perception job will not meet career goals

II. Talent Assessment: ...
Acquirer's Approach to Talent Selection
Acquirer's Approach to Talent Selection

The Acquirer’s Approach to Talent Selection in an Acquisition is aimed at anticipating employee initial questions and providing perspective on talent selection.

Although the integration will bring some job eliminations and job changes, the majority of roles within the combined organization will not be impacted. A necessary part of any integration is defining the new organization and opportunities as well as eliminating duplicate roles. When this occurs, we will communicate with impacted employees their specific options. 

Our goal is to share the majority of organizational decisions within 90 days after Close ...
Organizational Announcements: Communications Process, Schedule, and Format
Organizational Announcements: Communications Process, Schedule, and Format

Organizational announcements: protocol to follow when communicating outcomes of the talent selection process

Process

  • Functional leaders and/or HR will work with Communications to publish an informational article in the integration newsletter. Broad employee announcements will only be made after all affected employees have been personally communicated with.
  • Employee severances will be handled within the functions, in conjunction with HR. No formal communication will be issued regarding individual severances. Exceptions will be handled on a case-by-case basis.
Employee Retention Bonus Contract
Employee Retention Bonus Contract

This Retention Bonus Agreement (the "Agreement") is made and entered into effective as of October 1, 2030 (the 'Effective Date"), by and between John Doe (the "Employee") and ABC, Inc. (the "Company").

RECITALS

         A. The Company has announced the execution of an Agreement and Plan of Merger pursuant to which the Company may be acquired by another company. The Board of Directors of the Company (the "Board") recognizes that such announcement can be a distraction to the Employee and can cause the Employee to consider alternative employment opportunities. The Board has determined that it is in the best interests of the Company and its stockholders ...
Staffing and Retention Integration Project Plan
Staffing and Retention Integration Project Plan

Over 70 Staffing and Retention Activities Grouped into these Categories:

  • Finalize Organizational Structure for All Functions
  • Deploy a Staffing Process to Assess, Select, and Announce All Levels of the Organization below the Management Team
  • Management Team Design Tools to Retain Key Talent Prior to Close and Throughout the Transition Period
  • Develop a Process for Managing Reductions in Force and Administering Separation Packages and Outplacement Services
  • Design an Issue-Free Day 1 From the Employee Perspective
  • Provide the Communication Team with Guidance on Messages Related to Retention, Severance and Staffing

Step 9: Develop M&A Project Integration Plans

Evaluation of HR OD high level plan
Evaluation of HR/OD High-Level M&A Plan

Evaluation criteria in this 3-page Word document includes feedback to the HR/OD Team on The Team Charter, Plan, Organization Comparative Analysis, Future State Recommendation, Day 1 Items, Risk Analysis, Early Wins, Cost/Benefit Analysis, Outstanding Issues & Decisions, and Communication Plan.

The biggest challenges with this planning team have been:

  • Lack of clarity regarding what they own and what they don’t own within their charter (i.e., staffing, severance, retention, titling, compensation, org. design, etc.)
  • Slow to develop things that they feel they need more time to work on (staffing, severance, retention, etc.)
  • Figuring out if they could engage outside consultants 
Corporate Mergers and Acquisitions Survey
Corporate Mergers and Acquisitions Survey on Human Resources Support Needed

Four-page HR Survey Tool

Region Name __________________________

1. Please describe the anticipated level of change from the merger in your region:

a. No change anticipated in our region
b. Minimal change anticipated in our region
c. Moderate change anticipated in our region
d. Significant change anticipated in our region 
e. Unable to anticipate level of change at this time

 
How to identify integration priority
How to Identify Integration Priority Initiatives and Priority Initiatives Template

A team may feel overwhelmed by the large number of identified initiatives. To assist on how to prioritize projects, we provide evaluation criteria on the Priority Initiatives Template.

Review each initiative against the following guidelines:

  • Is it in line with our integration strategy?
  • Will it help us achieve our corporate goals going forward?
  • Will it help us to serve our internal/external customers?
  • Will it help us to achieve the synergies or cost savings behind the merger/acquisition?
  • How risky is this initiative ...
Human Resources Acquisition Integration Plan
Human Resources Acquisition Integration Plan
Free

20-page detailed Human Resources Acquisition Integration Plan that covers:

  • Organization Comparative Analysis: What are the key similarities and differences between the 2 organizations? How do we operate currently?
  • Future State Recommendation: How will we operate in the future?
  • Day 1 Items: What actions do we need to take at close?
  • Risk Analysis: What are the risks associated with transition?
    Early Wins: Are there any immediate actions we can take to demonstrate benefits and success?
  • Cost/Benefit Analysis: What are the costs and benefits associated with transition to the future state?
  • Outstanding Issues & Decisions: What open issues still need to be resolved in order to realize transition?
  • Communication Plan: What needs to be communicated (when & to whom) regarding the decisions that have been made?
Merger Integration Synergy Report Template
Merger Integration Synergy Report Template

For each synergy row in the Excel spreadsheet, there are the following columns: Status, BOD Commentary, Category, Detail, Description, Initiated Date, Likelihood, Impact, Dead Synergy, Start Date, Completion Date, Actual by Month, Cost to Achieve, Variance, and Annual Target EBIT.

Synergy types include Headcount, Operations, Sales Procurement , R&D Cost Savings, Pricing Rationalization, Procurement, and Cross Selling.
Integration Scope Change Request Form and Scope Change Log
Integration Scope Change Request Form and Scope Change Log

Two Excel templates to document and track scope changes

The impact on resources required and the timeline should be well understood before a scope change is approved. Each approval should be documented .

Scope creep is a common affliction of integrations. It's where scope changes happen slowly and unofficially, without changing due dates or otherwise making adjustments to the budget.
Integration Dependency Form and Dependency Log
Integration Dependency Form and Dependency Log

Two Excel templates to document predecessors and successors to dependencies

Dependencies mandate tasks be executed in a specific sequence. They should be rigorously tracked because they can help you:

  • Determine the right order of activities in the M&A integration.
  • Calculate the critical path of the integration
  • Identify resource and scheduling issues 
  • Identify opportunities to accelerate the schedule
Target Operating Model and Roadmap Template
Target Operating Model and Roadmap Template

Excel spreadsheet used to compare today’s operating model to the targeted operating model, and define the plan (Pre-Close, Day 1, 30,  90, 120) to close the gaps. Columns include:

Buyer As-Is Assessment
People, Processes, Systems & Tools, Assets & Infrastructure, Contracts

Seller As-Is Assessment
People, Processes, Systems & Tools, Assets & Infrastructure, Contracts

End-State Target Operating Model
Gaps and Transformation Steps
Estimated Synergies
Estimated M&A Synergies Report

Report includes conservative, optimistic, and most likely synergy estimates plus their basis for calculation, underlying assumptions, and time frame.
M&A HR Due Diligence: Side-by-Side of the HR Programs
M&A HR Due Diligence: Side-by-Side Comparison of the HR Programs

11-page comprehensive comparison of HR Programs of the Acquirer and Acquiree in 125 Areas.

The programs are grouped into the following categories:

  • Defined Benefit Plans
  • Retiree Medical Plan
  • Defined Contribution Plan
  • Health And Welfare Plans
  • Career Development
M&A Synergy and Cost Estimates
M&A Synergy and Cost Estimates

Excel spreadsheet to track synergy estimates categorized as labor and non-labor, required and discretionary (strategic vs. nonstrategic).
Templates for Integration Plan Review
Templates for Integration Plan Review

Questions to Review Communications, Costs, and Systems in Each Plan

Communications

Integration Team Name: _____________________________

Leader: ______________________________

Risk Assessment:

What is the risk of not being able to support the plan from a communications standpoint?

Rate the risk on a scale of 1 to 10 with 1= low risk and 10 = high risk:

Comments:

Completeness of Plan ...

 
Post-Merger Integration Cross-Border Finance Plan
Post-Merger Integration Cross-Border Finance Plan

7-Page Finance Plan from a Cross-Border Merger.

Excerpt

Finalize and communicate organizational structure
Coordinate closing process for August 2024
Establish initial treasury linkage to Acquirer

  • Weekly cash forecast process established
  • Weekly conference call re: cash position set up
  • Presentation by NT on capabilities to replace lock box

Develop Tax Efficient Global Reorganization of Acquirer

  • Develop preliminary schematics illustrating proposed reorganization
  • Present preliminary schematic plan proposal to upper management ...

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

Activities by Work Stream
At 90 Days - Activities by Work Stream

List of tasks by work stream (IT, Law, Finance, Corporate, HR, Operations) remaining to be completed

Human Resources:
Compensation

  • Plan for mid-transition hires
  • Communicating changes to salary grade and/or pay adjustments
  • Exec Comp:  SC compensation changes in System
  • All pay changes effective April in System

401K ...
M&A Synergy tracking tool
Synergy Tracking Tool
Free

Examples of overhead cost and synergy projections, and synergy tracking report (by type, work stream, and risk)

Comprehensive synergy tool template in Excel that includes 29 columns to track all dimensions of synergies.

Headings of 29 Columns in Synergy Report Excel Template

  1. Synergy Initiative #
  2. Function - Business/Product Line - Sub-function
  3. Workstream
  4. Workstream Ref #
  5. Description of Synergy Opportunity
  6. Category
  7. Date Original Input
  8. Date Updated
  9. Eliminate Redundancy …
M&A Integration Weekly Status report
M&A Integration Weekly Status Report - What and How to Report, Example, and Weekly Status Report Template

Instructions on weekly status reporting plus and one-page Word template of weekly status report.

What do you report?
Each team member will provide the following to the M&A Task Force leader: Key Actions/Accomplishments During the Past Week, Key Issues/Decisions Required, Potential Solutions/Help Needed, Next Steps/Actions

How is it reported?
Task Force Leaders compile the individual team member reports into a team report and submit it weekly to the IMO. Alternatively, Task Force Leaders may bring the team's report to a regularly scheduled IMO meeting and review the report with the IMO and other Task Force Leaders ... 
Overall M&A Integration Scorecard
Steering Committee Integration Dashboard
Free

The steps to create an integration scorecard and the categories to cover, plus an example

Goals (Example)

Cost Synergies
Reduce operating costs by $30 million
Reduce SG&A headcount expenses by $150K
Decrease inventory by $150MM
Reduce headcount by 100 FTE

Market/Customer Synergies
>98% retention of key customers ...
 
Information Technology: Day 1 Answers to Frequently Asked Questions
Information Technology: Day 1 Answers to Frequently Asked Questions

Information Technology: Day 1 Answers to Frequently Asked Questions

Most IT processes and procedures will remain unchanged on Day 1. Acquired Co. and Acquirer’s IT teams will be working closely together over the next several months to bring our IT systems together in the way that best suits the needs of the business. In the meantime, review the FAQs below to learn more about the IT transition and what it means for you. For even more information, check out the FAQ on Integration Central at http://www.ourcompany.com/integration ...
Acquisition Signing Day: Communications Overview and Schedule
Acquisition Signing Day: Communications Overview and Schedule

Acquisition Signing Day Plan Example Covers Communications Overview and Schedule. Includes columns for Events, Responsibility, Date and Time, Audience, and Supporting Materials

Events

  • Steering Committee Call to Review Communication Plan
  • Signing
  • Acquirer Press Release Distribution
  • Acquired Co. Press Release Distribution
  • Send BU Meeting Invites
  • BU Employee Calls
  • BU Customer Calls
  • BU Customer Email
  • Supplier Calls …
Welcome Week Letter to Acquirer’s Leaders
Letter to Acquirer’s Leaders about Welcome Week

Welcome week letter to acquirer’s leaders covers what’s needed from them and what they can expect.

Once we receive confirmation of the close date, a member of each team should reach out to facility managers/site contacts at each of the locations you’re planning to visit to discuss the day and time of each site event and your travel logistics.

Email all facility managers a copy of the Facility Managers Guide and your Welcome Week Schedule. Both are available on the Communication Document library in Smartsheet.

It may also be helpful for you to discuss any key issues or concerns the workforce has, as you prepare for meeting with employees during your visit. Some questions to consider:

  • Are there unique things about the facility, workforce, contract, etc. that may come up during Q&A sessions?
  • Has the facility undergone recent expansion, reductions in force, changes in structure or management?
  • What has morale been like since the deal was announced?

The Master Welcome Week Location List in Smartsheet has your facility contacts and contact information ...
Letter to Employees - Merger or Acquisition Announcement
Letter to Employees - Merger or Acquisition Announcement

Word document for the CEO's merger/acquisition announcement to employees.

Today, we announce exciting news: Company A has completed its acquisition of (merger with) Company B. This is an important day for our organization and one that ensures we remain a highly competitive global company.

We plan to quickly integrate the company and finalize the corporate organization structure within the next 90 days. The success of our integration effort will be driven by how effectively our employees work together to deliver value to our customers and results to our bottom line.

Company leaders will be visiting the new operations over the next few days to talk with employees about what this transaction means and what they can expect going forward.
Acquisition Letter to Customers
Acquisition Letter to Customers

2-page Word document for the CEO's acquisition announcement to customers.

Dear Customer,

Today, we announce exciting news: Company A has completed its acquisition of Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broader our business platform and deliver more value to our customers.

We know our success is dependent on your success, and we are excited about what the new Company AB has to offer:
Company Merger Letter to Vendors
Company Merger Letter to Vendors
  • Word document for the CEO's merger/ announcement to vendors.

Dear Valued Supplier,

Today, we announce exciting news: Company A has completed its acquisition of (merger with) Company B. This combination creates an organization even better able to serve customers and compete in the global marketplace.

Our new name is Company AB and our company's website is now CompanyAB.com. The name change symbolizes our intention to broaden our business platform and deliver more value to our customers.

We are excited about what the new Company AB has to offer: . . .
synergy template
M&A Synergy Template

The M&A Synergy Template captures synergy description, timing, assumptions, risks, cost to achieve, optimistic, conservative, and most likely synergy projections plus actual net synergies achieved.
Strategic Score of Each Integration Initiative
Strategic Score of Each Integration Initiative

A strategic score is assigned to each of 144 workstream initiatives in a cross-border acquisition integration.

Columns on Excel spreadsheet for each Initiative:

Work Stream, Responsible, Execution by Day 1, Urgency: Hi/Medium/Low, Impact: Hi/Medium/Low, Strategic Score, Ranking in Original Top 10, End State, Impacted Countries, Project Structure, Led By Accountable, Reporting to IMO 
Post Merger Integration Compensation, Benefits, and Policy Changes
Post Merger Integration Compensation, Benefits, and Policy Changes

 

Acquiree's Pre-Merger Compensation and Benefits Plan and the Acquirer's Post-Merger Changes in 40 Areas:

  1. Salary Plans
  2. Incentive Plans (Cash)
  3. Restricted Stock
  4. Overtime
  5. Exempt Overtime
  6. Overtime Meals
  7. Call-Out Pay
  8. Shift Differential
  9. Cafeteria Plan ...
M&A Day 1 Onboarding Guide
Day 1 M&A Onboarding Guide

DAY 1 

Today, marks the beginning of our new organization. This Day 1 Onboarding Guide is designed to help you understand changes that are taking place (or will take place) and any actions you may need to take.

The purpose of this guide is to explain:

  • What you need to know now (Now: this week)
  • What you'll need to know and do in the very near future
  • When other changes will take place and when you can expect to hear more about them

You will continue to do your job the same way you did before close. As we continue to integrate our organizations, we will inform you of changes, and if your assistance is needed. This guide covers company-wide information. Your manager will cover information specific to your function.
Acquisition Integration Status Reports by Function
Acquisition Integration Status Reports by Function

Status Reports

Finance
IT
Legal
Manufacturing
HR
Sales
M&A Integration Scorecard
M&A Integration Scorecard Template

Excel Spreadsheets

10 Instructions

  1. The latest version of the Integration Scorecard/Milestones will be sent to you via email each Monday. This version will reflect all updates reported through 5:00 pm (Central) the previous Friday.
  2. Send all weekly updates to Bill Smith at [email protected]
  3. Make your updates directly to the latest version of the Scorecard/Milestones. This allows us to cut and paste. There is no need for you to recreate your milestones elsewhere or retype them each week. Just make the changes you want to make, save the file, and then attach the saved file to an email. Please put your team’s name in the subject line of the email along with the “as of’ date. Example: Engineering Update 12Jun25.
  4. When you submit your updates, please make sure you’ve reviewed all due dates for your team. If you submit an update with past due milestones, those items will be flagged as yellow indicating that they are overdue ...
M&A Cost Synergies Report
Cost Synergies M&A Report

M&A Cost Synergies Excel Template plus Example of Completed Template

Instructions for Cost Synergy Template       

1) Log each integration activity that increases or decreases headcount and/or expenses with projected time frames.   

2) Use "Assumptions and Notes" to describe each integration activity in more detail.

3) Notes regarding general accounting treatment:

  1. Severance for reductions in Acquiree positions are generally capitalized as part of the purchase price (if the reduction is made within one year).
  2. Severance for reductions in Acquirer positions are expensed when employees are notified.
  3. Stay bonuses are expensed over the period teammate is required to work.
  4. Costs related to Acquiree facilities that will no longer be utilized are generally capitalized as part of the purchase price (if the move is made within one year).
  5. Costs related to Acquirer facilities are expensed.
  6. Potential sub-lease income offsets costs recorded ...
M&A Day 1 Answers to Employee Frequently Asked Questions
M&A Day 1 Answers to Employee Frequently Asked Questions

Excerpt from Answers to Employees FAQs

  1. Is the purchase/sale of Acquiree to Acquirer finalized?
    Yes. The U.S. Department of Justice (DOJ) and Acquirer have entered into an agreement which permitted the acquisition to proceed. The Acquirer and Acquiree have both received Board and Shareholder approval and we have officially closed the deal.
     
  2. What Acquiree offices are included in the sale?
    All Acquiree’s operations in North America, Europe, and Asia are included in the deal.
     
  3. Do you anticipate closing any Acquiree or Acquirer Company facilities?  Do you anticipate job losses due to the merger?
    We have formed global integration teams that include members from both Acquirer and Acquiree.  They will look at where functions, resources, and processes can be combined in order to reduce cost, better serve our customers, and ... 
Merger Synergies Cross-Border Deal
Merger Synergies Cross-Border Deal

Synergies for the following work streams:

  • Finance & Corporate Admin Phase One Americas
  • Finance & Corporate Admin Phase 2  EMEA
  • Legal & Risk Management
  • Human Resources
  • Administration
  • Manufacturing Operations
  • Information Technology
  • Customer Support
  • Columns on the Excel Spreadsheet:
Cross-Border Day1 Merger Integration Plan
Cross-Border Day 1 Merger Integration Plan

Excerpt from Day 1 Cross-Border Plan for 5 Cities and 4 Countries

Day -7

Internal Comm: FAQs (IT, Payroll info: semi-monthly to bi-weekly, Cobra, Remote I-9s (notarized), holiday, FICA withholding, insurance deductible)
Full List of Employees (preferred name, email address, cost center, job title)
Establish new vendor as supplier (interim IT support)

Day -3

Internal Comm: ...

 
Post-Merger Integration Dashboard
Post-Merger Integration Dashboard

Post-Merger Integration Status Reported by these Departments: 

  • Corporate Business Development
  • Corporate Communications
  • Tax Products
  • Customer Support
  • Facilities
  • Finance
  • Legal
  • Human Resources
  • Information Technology
  • Marketing
  • Commercial Applications
  • Product Management
  • Production
  • Sales and Alliances
Integration Update 90-Days Post-Close from CEO
Integration Update 90-Days Post-Close from CEO

First Page of 3-Page Merger Integration Update

From: CEO
To: Employees

It’s now been three months since we combined our companies. I’d like to explain what integration challenges lie ahead and how you can continue to help.

First, I thank you all for your cooperation and hard work. Integrating two companies is tough and I recognize that many of you have put in a lot of additional effort to help the two companies begin operating as one. I thank everyone for their patience. During a transition there are always more questions than answers, and I appreciate your ability to stay focused and productive in spite of the inevitable ambiguity and uncertainty that mergers always bring.

We still have a way to go. I’m aware of the differences in the management styles of the two companies and am committed to improving our cultural integration effort. I’m also aware of our failure to communicate as often as people would like. I hope this update is a demonstration of my commitment to improve in that area as well ...

 
Welcome Letter to Employees After an Acquisition
Welcome Letter to Employees After an Acquisition

TO: Acquired Co. and Acquirer Employees

FROM: President

SUBJECT: Acquisition

Today, we have completed the acquisition of Acquired Co. We have the unique opportunity to build upon our complementary portfolio, strong businesses, recognized brands and quality products to become one of the leading companies in our industry. To our newest employees, let me be the first to welcome you to Acquirer.

This acquisition is a game-changer for all of us. We are now a $5.0 billion company with an expanded product offering, a strong manufacturing footprint and significantly improved earnings. All of this makes for a better, stronger Acquirer – which in turn creates a stronger global Acquirer enterprise with the resources and strategic focus to continue investing in our growing business ...

 
Acquisition Announcement Letter to Employees
Acquisition Announcement Letter to Employees

TO: Employees

FROM: CEO

SUBJECT: Acquisition

Today marks a historic and exciting milestone for all of us: the transaction to combine the Acquirer and Acquired Co. is complete. Together, we will form a stronger business, drive further growth and innovation, and create more value for our employees, customers and stakeholders.

Acquirer and Acquired Co. have been on parallel tracks to modernize our industry with revolutionary products. Our future is not very different from what we aimed for as separate businesses, but now we can move forward with more confidence because we are together.

Our combination enhances virtually every element of our business to deliver quality products and services to customers, and optimize investments and costs for strong financial returns and profitable growth ...
How to Communicate a Merger to Customers: Three Examples
How to Communicate a Merger to Customers: Three Examples

Examples of communications to customers from three different acquirers and deals.

Excerpt from first example:

T4 has recently announced its agreement to purchase OCN to become one of the foremost business service providers in North America. This provides our customers the opportunity to access an enhanced service portfolio over a larger geographic area.  T4 is and will remain committed to supporting our customers’ mission critical requirements ... 
Letter to Customers after Acquisition
Letter to Customers After an Acquisition

Excerpt from Announcement Letter to Customers

We have announced exciting news: Acquirer and Acquired Co. have completed the transaction to merge our operations.

This is a game-changing combination which will provide us with the scale, geographic reach, and capabilities to solidify our position as a leading provider of materials in our industry. Going forward, you will receive even more value from our products:

  • We will have a greater portfolio of quality products and a family of brands as well as increased capabilities to innovate superior products and systems 
  • We will tap into Acquired Co.’s industry-leading technology and R&D and achieve more innovations in manufacturing technology, products, and systems.
  • We will have greater reach and capacity to meet customer requirements ...

Step 11: Capture M&A Integration Lessons Learned

Lessons Learned Report
Example of a Lessons Learned Report and Lessons Learned Report Word Template

The two-page document is an example on the data collected by The Steering Committee, Integration Team, and Task Forces about what went well during a merger and what should be changed for the next Integration. The two-page Lessons Learned Word template is also provided.

On chartering the team(s)
Review the Charters semi-monthly to ensure Task Forces are consistently on track

On creating, reviewing, and approving Detailed Project Plans
Include fewer people in the review process (it took too long) ...

 
Post Merger Integration Best Practices Tracking
Lessons Learned: Post-Merger Integration Best Practices Tracking Tool

The Steering Committee, Integration Team, and Task Forces collect information about what went well and what should be changed during the next Integration. This meeting should be conducted before the Integration teams have disbanded. Lessons Learned should be fed back to the next Steering Committee and Integration Team for the next Integration Planning effort.

Two-page example and two-page PDF template.