The success of a merger or acquisition depends on the acquiring company’s ability to capture cost-saving and growth synergies and ensure business continuity throughout the post-merger integration. Our work typically starts when the acquiring company is in the due diligence phase and getting ready to sign the agreement.
Integration and carveout
The success of any merger depends almost entirely on a practical and well-planned integration. Creating the target operating model and long-term integration plan to reach the target is one of the most challenging parts of the overall M&A process.
An M&A program and project plans outline precisely how and when significant people and technology resources, assets and processes of the acquiring and acquired companies will be combined to achieve the goals of the deal.
We help our customers to set targets for the integrations, select the integration approach, define the future operating model and architecture, identify and kick-off implementation projects and manage integration program and related projects, before and after the Day 1.
When companies divest parts of their business, we also help in planning and executing carveouts and enabling carved-out businesses to continue as independent entities.
Focus on ICT
Research shows that 60-80% of the integration costs come from ICT. One of the biggest challenges during ICT integration is to reach strategic business objectives quickly while making sure that both companies’ day-to-day operations continue uninterrupted.
Because ICT is business-critical and most time-consuming part in integration, we often manage the ICT integration programs. Typically, the primary aim is to create an integrated ICT architecture that ensures business continuity. Another aim is to identify opportunities to standardize, consolidate, optimize applications and infrastructure, and to evaluate and streamline partner and vendor ecosystem.
Since ICT affects all areas of a company’s operations, excellent planning and management of ICT integration are central for the overall success of the integration. It also enables the business to achieve its targets.
Start early
Integration planning should start latest when a letter of intent is signed and weeks before the deal is even announced.
Our consultants have extensive experience in challenging M&A integrations and we offer a rigorous and systematic approach to effective M&A integration for all sizes of integrations and carveouts.
Our guidelines
- Clear vision of the M&A outcome is the basis for integration
- Visible management support is essential for success
- Integration cannot be done and business benefits cannot be realized without readiness to make difficult decisions
- Focusing on people and culture is critical to keep the employees and make the company work as one
- Hands-on execution makes the integration happen
- Without the patience to complete the integration expected business benefits will not be reached
Readings
ICT Integration in Mergers & Acquisitions ICT M&A White Paper