Mergers & Acquisitions

Planning and execution leadership in M&A integrations and carve-outs. Ensuring business continuity and the realisation of business benefits.

CFOs, CIOs, and business leaders turn to Midagon, when they require deep, yet practical expertise in M&A implementation. We combine hands-on experience of planning and executing numerous integrations and carveouts in both global and local companies with deep understanding of the most critical business domains – supply chain, finance and ICT. Our competence covers the target operating model and architecture design and program management experience based on proven methods and concepts. Our first priority is to protect and secure business continuity in these transactions. 

Midagon is the choice for the toughest M&As and carveouts 

Mergers & Acquisitions is a special service for Midagon. Our first large scale M&A project was the Nokia - Alcatel Lucent integration, which Kauppalehti wrote about in 2016. Today, we continuously have a high volume of M&A projects. Other prominent, large scale M&A cases include: 

  • YIT paving business carveout to Peab 

  • Neles carveout from Metso 

  • Incorporation of L&T to multiple legal entities 

  • F-Secure's acquisition of MWR Infosecurity

  • Veikkaus-RAY-Fintoto merger

  • Indoor Group's carve-out from Kesko

We are independent and objective, with no ties to solution or service providers. We are experienced in multi-vendor management, and focus on the deal vision and business benefits realization. 

Our Mergers & Acquisitions service in brief 

  • A leading consultancy in the execution of M&A integrations and carveouts.  

  • Strong hands-on know-how and proven methods for different phases of M&As. 

  • More than 20 skilled M&A consultants.

  • 10–15 ongoing M&A projects.

  • The size of the projects varies from large scale mergers to small divestments and acquisitions. 

Typical roles in M&A integration and carveout projects 

  • PMO lead 

  • Program manager 

  • Finance track lead 

  • ICT track lead 

  • Supply chain track lead 

  • Lead architect 

  • Cutover manager 

Midagon's Approach on M&A Execution

The biggest challenges in M&A projects are typically about how to define the target state and scope of the project, how to prioritize the tasks and how to resource the work. At the same time, business continuity must be ensured. 

The top priority task is typically “coordination and control”, meaning common management structure, common business/finance reporting and communication infrastructure. The next steps vary case by case, but quite often then next one is the creation of a unified customer interface for the merged company, followed by system landscape harmonization. Product and service harmonization are typically a very complex and even a political battlefield. Therefore, they are often left for last. The deal logic is, in many cases, based on synergies, when priorities will be driven by the biggest synergy potential search. 

Business does not stop during the M&A projects.

M&A Services

M&A PMO Management

Midagon has experience and a proven methodology to manage the M&A PMO over the whole project lifecycle, from planning and implementation to cutover war rooms and hypercare. Our skilled consultants can prevent and prepare for many of the typical problems of M&A projects, which speeds up the implementation and reduces the risk of failure. Our templates and checklist rapidly create a structure for the project and reduce the risk of missing some crucial aspects. 

A typical M&A project has following tracks, which need to be synchronized in the M&A PMO: 

  • Finance 

  • HR 

  • Sales and supply chain (incl. Products and Services, Pricing, Account Management, Stocks and Inventories, Sourcing) 

  • ICT 

  • Legal 

  • Marketing and communications 

  • Facilities 

The tracks have complex and deep dependencies, which means that they cannot make siloed decisions.  

ICT Track Lead

60-80% of the M&A implementation costs come from ICT, while more than half of the synergies available in a merger are strongly related to ICT. Therefore, the success of any merger, acquisition or divestment depends almost entirely on a practical and well-planned implementation. 

One of the biggest challenges during ICT integration is to reach strategic business objectives quickly while making sure that day-to-day operations continue uninterrupted. 

Because ICT is business-critical and the most time- and effort-consuming part in M&A implementation, we often manage the ICT stream in these programs. The primary aim typically is to create an 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. 

Many of Midagon’s M&A consultants have a history of holding a position either as a CIO or ICT PMO leads, which means that we understand the full stack of ICT services and solutions, the dependencies between business and ICT and the new possibilities to tackle the problem areas.  

Finance Track Lead

Finance is a key track in M&A projects. It is crucial for business continuity and management. There are also many regulatory requirements, which need to be continuously complied with. For example, any changes in finance have potential tax implications and in publicly listed companies can easily affect the stock price. 

Many of us have worked as CFOs or in other key roles in finance and have experience in divestments and mergers. We know how to reorganize and manage finance structures in M&A projects. Good examples are complex country legal mergers, which require a good understanding of multiple local accounting and tax practices. 

M&A Playbook

Some of our clients divest and/or acquire businesses on a regular basis. In that case, it makes sense to “industrialize” the M&A process and set a template for future M&A projects. This is often called an M&A Playbook. 

We have helped our customers in M&A Playbook formulation. In these projects, we typically merge existing customer M&A know-how and the Midagon methodology. The M&A Playbook is then jointly tested and piloted in the following M&A project and adjusted, as needed. 

Midagon Mergers and Acquisitions service

M&A Project Phases

The typical M&A deal flow consists of Strategy, Transaction and Implementation phases that relate to integration or separation strategy, planning and execution.

Strategy

A clear vision of strategic goals and deal value is the critical starting point for a successful transaction. We can support our clients to define their M&A strategy and approach for implementation. Our strong points are the definition of integration or separation management approach, maturity assessments, and ICT due diligence.  

Transaction

Implementation planning should start latest when a letter of intent is signed and weeks before the deal is even announced.  

Creating the target operating model with the key capabilities to be realized and structuring the long-term implementation plan 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 will be aligned to achieve the goals of the deal.  

We help our clients to set targets for the implementation programs, select the integration or separation approach, define the future operating model and architecture, and identify, initiate, and manage implementation program and related projects. 

Integration or separation management office setup is a critical step, where the implementation program is mobilized. We advise our clients on program and project management best practices and optimal setup for their implementation. 

Implementation

Up to 70% of all M&A programs - mergers, acquisitions, or divestments - fail to realize the expected business benefits. The most important factor in achieving a successful M&A transaction is effective implementation.  

We take hands-on responsibility for running implementation programs and projects, so that client management can focus on their critical leadership tasks. We help to ensure that, when difficult decisions must be made, they are made based on facts and experience. We encourage client management to show visible support to the implementation program and to focus on leading people and culture so that key stakeholders are kept on board and daily operations can continue without distraction. 

Midagon's approach to M&A implementation is directed at realizing the deal targets and business benefits. We help our clients to keep the focus clear and have the patience to complete the implementation program and projects, while ensuring business continuity.

Contact for more information

Ilkka von Schulman Midagon Oy

Taru Weckroth

Senior Managing Consultant, M&A Community Lead

+358 40 510 1918