Post Merger Integration...
When most firms refer to M&A work, they think about structuring, funding, and closing a deal. The real challenge is ensuring that you recognize the potential synergies.
It is incredibly difficult to take two or more business units with different business cultures, processes, systems and reporting structures, and merge them into a single harmonious, productive entity. It is even more challenging to accomplish the feat quickly and efficiently. Faster integration means earlier productivity and an acceleration of financial results.
“Do you have the ‘hands-on experience' in-house who would be 100% available for this unique post merger synergy / consolidation work? ”
Seventy percent of companies that are acquired / merged never realized 60% their envisioned synergies. The #2 issue that limited the cost efficiencies, after corporate culture, is infrastructure.
Most mergers have utilized “an army of attorneys and financial analyst” in the determination of the future possibilities / opportunities. Now the challenge is generating synergies and optimizing the “best of breed” of processes, information, culture, and infrastructure.
Our work included senior executive involvement in the combinations (Mergers and Acquisitions) of two $4 billion companies, three $100 million companies, an $8 million and a $38 million dollar acquisition. Obviously each project has its own challenges – but getting rapid synergies through infrastructure, finance and working capital is paramount.
Like a first impression, you get only one “shot at the opportunity to optimize the merger synergies” so you want to make certain that it is organizationally sound with the right team, infrastructure and financial reporting processes.