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The Perreault Birmingham Group LLC, San Francisco
Value Added Merger & Acquisition Services
Page: Post M&A Integration, Planning and Implementation
URL: http://www.thepbgrp.com/merger-acquisition-services/post.html

Post M&A Integration Planning and Implementation

Need/Opportunity

The key to a successful M&A transaction is effective integration of two companies into a single business unit, capable of achieving the benefits intended. It is at the integration stage immediately following closing that many well-conceived transactions fail. Although often overlooked in the rush of events that typically precede the closing of the transaction, it is the integration of two entities that results from careful planning and execution which, in the end, is essential to a successful transaction.

To achieve this outcome, companies which are combining must first jointly create and then follow an operational integration plan that results in an effective merger of the organizations. This is a two-stage process: (i) following the signing of a term sheet or merger agreement, the parties should develop detailed plans for integration of the two organizations; and (ii) following the closing of the transaction, the new entity needs to implement this plan effectively.

A well-thought-out, detailed implementation schedule is required to transition responsibilities to new business entities without impairing business performance, employee morale or customer experience. In particular, the acquiring organization needs to take special steps to ensure it makes sound operational decisions, no matter which side's people, processes, or products are affected. In many circumstance using independent, external resources to advise or lead integration team efforts may better serve the combined entity since they can overcome institutional biases and attachments on either side to make decisions that are in the best interests of the combined entity.

The PBGroup Post M&A Integration Planning and Implementation Services

The Perreault Birmingham Group's principals have deep integration experience and can advise, develop and lead a business Integration process involving either a single integration team or multiple teams from a core integration team and business integration teams for each major functional area. They can provide project management support and establish a process for reporting and resolving key integration issues with the executive management team of the combined organization.

Service Process

Steps in our Post M&A Integration Planning and Implementation Services process:

  1. Integration Planning Phase
    1. Identify Core Team and Business Process team leaders from both entities
    2. Create a Customized Integration Plan (or Roadmap)
    3. Communicate Integration Roadmap to team leaders and participants in the Integration Planning and Implementation Process
  2. Integration Implementation Phase
    1. Project Management (Top - Level) across functional teams
    2. Report results, progress, and risks to Executive Team to expedite decision
      - making and implementation of risk mitigation plans
    3. Continue to identify cross-functional dependencies, monitor to closure
    4. Provide interim management, where necessary, until permanent candidates can be hired

Deliverables and Milestones

A successful integration creates a single well-organized and fully integrated entity able to achieve the objectives of the transaction. A successful integration process involves a continuous stream of discovery, decision analysis, monitoring, and risk management throughout the engagement, at multiple levels of the organization.  Key deliverables include:

  • Identify, measure, and monitor Integration Critical Success Factors
  • Develop functional 30, 60, and 90 day plans
  • Provide independent advice to executive management on difficult integration issues and decisions as they arise
  • Identify milestones/accomplishments
  • Provide expanded operational expertise and capacity during a period of elevated activity levels, often where inside participants are unable to reduce day-to-day responsibilities.

Post M&A Integration Planning and Implementation Experience

The principals of PBG have over 20 years of experience in helping companies successfully execute mergers, acquisitions and divestitures.  This following are some of the companies and transaction in which The PBG principals have been involved.  For a more detailed list of companies and transactions, please click here.