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“I evaluate an acquisition using three criteria: strategic fit, acquisition price and post deal implementation plan ...” Richard Allely, PMP Group Chief Executive “... and the third of these is the hardest to get right.”
Many studies have shown that mergers and acquisitions rarely meet the expectations of the purchaser: most people agree that it is in the post deal phase that things go wrong when the greatest effort is needed, however the level of available resource is normally at its lowest.
A structured and focused approach is needed in order to co-ordinate the many tasks that are needed to do at or around Completion and in the first 100 days thereafter.
The integration plan requires co-ordination and balance to ensure that the various work streams are operating in a synchronised manner. Without a clear communications strategy sending consistent messages to the relevant stakeholders the plan is likely to fail. Many clients benefit from having dedicated (often independent) resource to assist in the development of the integration and communications plan and subsequent tracking and reporting progress.
A T Consulting can work alongside management teams in order to provided the necessary structure and focus; and with experience of over 100 deals and many post deal implementations can provide expert input into the plans and can access complementary functional legal, HR, IT and strategy expertise as well as A T Consulting’s own core financial and finance function expertise.
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Attributes of a successful integration
• No surprises. • Consistent and proactive communications to all stakeholders.
• Get the Completion actions (e.g. renew insurance, change passwords) out of the way as quickly as possible – they add no value but can quickly destroy value.
• Take control of cash - working capital; control expenditure; review authorisation levels.
• Keep it simple and focus on the key value realisation actions that drive the greatest benefit.
• Ensure that there is an appropriate integration governance structure so that the Board and management are able to take action quickly.
• Get the right management team in place with the right incentives.
• Measure the right things.
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