"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. — Niccolo Machiavelli
According to a 2006 Economist Intelligence Unit report, 67% of executives cited cultural integration as the most critical success factor in mergers and acquisitions. The problems of customer attrition, productivity declines and a failure to capture cost synergies have also been well documented. In our experience helping companies successfully execute successful M&A strategy we’ve learned that you have to look at the opportunity through multiple lenses to see where the value really is – and how to capture it.
We believe that
- Financial due diligence informs target purchase price but doesn’t predict the probability of long-term success.
- Absolute clarity on the rationale for the deal must be defined in terms of what it does for capabilities, customers, products and employees.
- Most deals succeed or fail in the first 90 days after closing, so you should maximize the value and momentum of post-deal integration activities immediately.
Our Approach
We work with leaders to answer the following questions:
- What did we learn in pre-deal due diligence about targeted synergies?
- Which functions, infrastructure and processes should be integrated and to what degree, and what’s the right sequence?
- Who owns the integration of each key function and what measures will we use to define and assess integration effectiveness?
- How will newly acquired talent be assessed and deployed?
- What level of cultural integration should be targeted to avoid productivity loss, retain talent and ensure realization of anticipated financial benefits?
Benefits
- A detailed plan and metrics to assess integration progress across each capability area and function.
- Greater realization of anticipated financial, operational and customer benefits.
- A systematic approach to talent assessment, deployment and retention.