Post on 26-Jun-2018
transcript
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MergerandAcquisitionPost-TransactionIntegrationServices
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BestPracticesForPost—TransactionIntegration
Preparation
• Definesuccess• Developandadheretoanintegrationframework
• Don’tmakeDay1biggerthanitneedstobe
• Developatime-based,goal-centricintegrationplan
• Ifandwhenanorganizationalalignmentoccurs,communicateandsticktoit
• Identifyyourkeyplayers• Planandprovisionforculturalresistance• DeveloprealisticinternalITtimelineandbudget,butholdpartnersaccountablefortheirtimelineandbudget
• Geteveryonespeakingthesamelanguage
Execution
• Integrationisafull-timejobrequiringadedicatedprojectmanager
• Inspiteofpreparation,thingswillgowrong...it’showyoureactthatmatters
•Over-communicate,andthencommunicatesomemore
•Measuresuccessagainstprojectmilestonesandsynergygoal
Improvement
• Transitionfull-timeintegrationprojectmanagementtovariousowners
• Don’tlosesightoflongertermintegrationmilestones
• Continuetomeasuresuccessthroughmanagementdashboards/reports
BeginsPrior toAcquisitionClose 30-100Days 180+Days
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DevelopYour100DayPlan•UnderstandBuyerandAcquisitionandDealSynergies•DefineSuccess•ConfirmLeadershipCommitment
AlignStrategy
•AssessCulturalDifferences• Identify“Keeps”and“Gives”forBothOrganizationsIdentify Culture
•CreateA+TeamstoLeadIntegrationInitiatives•AgreeRoles&Responsibilities;TietoStrategy•MeasureTeamPerformanceandTaskCompletion
DedicateResources
•DefineandPrioritizeInitiatives•DevelopDetailedActionPlansforAchievingSynergies
DevelopActionPlans
•DefineDesiredEndState• SetMetricsandMonitorTeamProgress•TransitiontoOperations
Execute
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AligningStrategy
Define Short,MidandLong-Term
Success
• People- Integration,Training,Hiring,Exits,Comp,Performance Goals,MeasurementandReview• Process- Normalization/Standardization,Documentation,TrainingandReporting(Admin,Operations,Marketing,Sales,ServiceDelivery)
• Product,ServiceandSolution– SalesGrowthTargets• CostSavingSynergies– HardandSoftSavings(ProfessionalFees,Insurance,Procurement, etc.)
DevelopIntegrationFramework
•People•Processes•Systems•Portfolio•Customers•Suppliers
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Don’tMakeDay1BiggerThanItNeedsToBe
FocusArea Acquisition Buyer
ReportingStructure NoChange NoChange
Employees Nochange;keepcurrentbenefitplanthrough (TBD)
NoChange
BaseRevenue CreditedtoAcquisition CreditedtoBuyer
JointSynergyBuyer Single revenuegoalbasedoncross-selling;50/50splitbetweenAcquisition andBuyer
Single revenuegoalbasedoncross-selling;50/50splitbetweenAcquisition andBuyer
CommissionStructure AtAcquisition’s Discretion AtBuyer’sDiscretion
Customers Current;determineanyoverlapandstrategy toaddressit
Current;determineanyoverlapandstrategy toaddressit
Branding CurrentBrandingwithInputfromAcquisition andBuyer
NoChange
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DevelopaTime-Based,Goal-CentricIntegrationPlanDay1 Day30 Day90 Day180
Operations • Customerand Supplier OverlapAnalysis
• Technical, OperationalandAdministrativeResourceOverlapAnalysis
• SynergyIdentification
• OverlappingCustomerCoverage
• SalesForceTraining• ContractPrioritization• ContractRoadmap• SalesPlanDevelopment
• SingleCommissionStructure
Accounting • Acquisition HardClose• Create‘NewCo’• CheckSigningAuthority/Printing• Vendor Comparison &Upload• Acquisition Budget
• PurchasePriceAllocation• EquityCalculations&Entry• InterimMonth-end Close• Reviewof SupplierSpend
Reports
• Accounting SystemMigration • BankAccountConsolidation• CorpCC/Travel&Expense
Migration
IT • MembershipScrub• MemberListDistribution
• IT&SecurityAssessment • LOBandSalesCRMMigration• PSAandRMMTool Migration
• Laptops,Desktops, Infrastructure
HR • I-9Verification • EmployeeBadge-over, Onboarding• Acquisition Compensation Adj.• 401KOwnershipTransfer• Acquisition BenefitsEnrollment• PayrollMigration
Communications • PressRelease• InternalBuyerComms• Acquisition SupplierComms• BuyerCustomerComms
• Acquisition WelcomeMeeting
• Quarterly/Annual Kickoff • Branding
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Between30-100Days
FocusArea Acquisition Buyer
OrganizationStructure Consolidated
Employees Consolidatedback-office;singlebenefitsplan;PotentiallySeparateSalesteamsbasedonspecialization
Revenue Sales PlanasDetermined Sales PlanasDetermined
CommissionStructure AtAcquisition’s Discretion AtBuyer’sDiscretion
Customers As determinedbygrowthstrategyandSalesPlan
As determinedbygrowthstrategyandSalesPlan
Branding TBD TBD
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ThePeoplePartistheMostChallenging
• Whenorganizationalalignmentoccurs,communicateandsticktoit• MayormaynotbeonDay1• Avoidundefinedfuturestateorgchartsortransitionalorgcharts
• UseDISCBehavioralProfiling,RoleSurveysandLeadershipSelf-Assessments• UnderstandhowbesttocommunicateandconnectwithAcquisitionresources• Understandwheretheyseethemselvesintheorganization– leader,followerorneither• Identifydissatisfactionearlyanddevelopandimplementstrategiestodealwithit
• Identifyyourkeyplayers• Employeestendtoaskquestionof“whatdoesthismeanforme?”• Clearlydefine“thisiswhereweareandthisiswherewearegoing.”• Helpstoavoidunnecessaryattrition
• Planandprovisionforculturalresistance• Longestelementofoverallchange• Pickyourbattles
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AccelerateSpeakingtheSameLanguage-Reporting
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AccelerateSpeakingtheSameLanguage–ChartofAccountsMapping/Normalization
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ExecuteRigorously
• IntegrationManagementisaFullTimeJob• Developintegrationplanandtimelines• Alignresources• Overallprojectlead;assimilateinformation• Identifyandescalateearlywarningsigns• Statusupdates• Measuresuccess• OwntheIntegrationProject
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DetailedProjectPlans
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GanttCharts
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ExecutiveDashboards
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WhenThingsGoWrong…AndTheyWill
• Evaluate• Understandcause• Understandandidentifykeyplayers• Understanddownstreamimpact
• Mitigate• Developaplantoaddressthesituation
• TakeActionandCommunicate• Notifykeyplayersofactionplan,theirrolesinresolution,andexecute• Alertleadershipofsituationandbepreparedtodiscussactionplanandtimelinetoresolution• Informallimpactedpartiesofplanandanychangestheyshouldbeawareof
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MeasureSuccess
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ContinuetheMomentum– 90Days
• TransitionProjectManagementToVariousOwners• Armnewownerswithallofthenecessarytools• Projectplans• Communicationsplans• Trainingmaterials
• Listofinternalandexternalresources• Keepprojectstatusupdateswithexecutivemanagementinplaceuntilentireprojectiscomplete
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Don’tLoseSightofLonger-TermMilestonesDay1 Day30 Day90 Day180
Operations • CustomerOverlapAnalysis• SynergyIdentification
• OverlappingCustomerCoverage
• SalesForceTraining• ContractPrioritization• ContractRoadmap• SalesPlanDevelopment
• SingleCommissionStructure
Accounting • Acquisition HardClose• Create‘NewCo’• CheckSigningAuthority/Printing• Vendor Comparison &Upload• Acquisition Budget
• PurchasePriceAllocation• EquityCalculations&Entry• InterimMonth-end Close• Reviewof SupplierSpend
Reports
• Accounting SystemMigration • BankAccountConsolidation• CorpCC/Travel&Expense
Migration
IT • MembershipScrub• MemberListDistribution
• IT&SecurityAssessment • LOBandSalesCRMMigration• PSAandRMMTool Migration
• Laptops,Desktops, Infrastructure
HR • I-9Verification • EmployeeBadge-over, Onboarding• Acquisition Compensation Adj.• 401KOwnershipTransfer• Acquisition BenefitsEnrollment• PayrollMigration
Communications • PressRelease• InternalBuyerComms• Acquisition SupplierComms• BuyerCustomerComms
• Acquisition WelcomeMeeting
• Quarterly/Annual Kickoff • Branding
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