2. Pre-Planning Realities
Deal may still be in flux, lots of unknowns, timing and close date a
moving target
Inability to speak with subject matter experts for critical integration
workstreams
Level of integration support required still TBD
3. M&A Trouble Spots
People ExecutionPreparation
• Cultural conflict
• Key talent loss
• Lack of attention to
people issues during
implementation
• Competing priorities
• Lack of senior mgmt
commitment
• Lack of integration pre-
planning
• Overpayment for
acquisitions
• Weak due diligence on
people and operations
• Overestimated
synergies
• Lack of shared
vision/strategic
direction
• Low/no integration
budget
• No integration playbook
or consistent approach
• Lack of Integration
Management Office of
team (or poorly
resourced team)
• Ineffective technology
integration
• Slow pace of
integration
• No end state planning
• Scope creep
4. Pre-Planning Objectives & Rationale
Identify value drivers
Pre-Planning Objectives
Information can help confirm high priority
workstreams, functional subject matter expertise
needs, financial reporting requirements and
cross functional dependencies
Rationale
Determine Integration Objectives
Information can dictate Integration Management
Office (IMO) structure and support needs, as
well as timing parameters, critical deliverables
etc.
Risk Assessment
Identify areas of potential risk and develop
mitigation plans
5. Identifying Value Drivers
Delivering value is the most critical deliverable of any integration.
• Delivery and implementation of the business plan: Are you establishing an
integration plan that aligns with the operating plans of the new organization?
• Identification and delivery of synergy plan: Have you created or are you
supporting synergy tracking and benefits realization as part of your integration plan?
• Attainment of “quick win” cost reduction and revenue enhancement
initiatives: Have you singled out areas where cost savings and other business
benefits can be quickly realized as a result of expedient and sound integration
planning and execution?
• Framework for benefit tracking: Do you have the tools set up to accurately track
and manage the integration synergy plan?
• Key Employee and Customer Retention Plans: Do you have plans to retain
critical employees and proactively “lock down” critical customers/clients?
6. Determine Integration Objectives
M&A Rationale
• Economy of Scale
• Cross-Selling
• Economy of Scope
• Geographical or
Other Diversification
• Vertical Integration
Priorities
• Business models
• Value Drivers
• Business
Environment
• Risk Areas
• Culture Issues
• Management
Priorities
Absorption
Acquired company
conforms to parent
Transformation
Both companies find new
ways of operating
Best of Both
Additive from both sides
Autonomy
Acquired company retains
its independence
Reverse Merger
Acquired company dictates
terms to parent
Integration objectives & priorities should cascade off
of M&A rationale and integration strategy
7. Risk Assessment
Integration leaders should factor assessment learnings into workstream planning
Universal Risk
Assessment
Operating Style
Assessment
HR
Assessment
Stakeholder
Input
Integration Planning Impact
• Workstream prioritization and timing
• Overall integration timeline impacts
• Critical dependencies
• Cultural integration challenges
• Communication planning priorities
• Employee satisfaction/morale issues
• Organization planning challenges
Factoring assessment learnings into your integration plans will enable
you to proactively address potential hotspots and issues.
8. Whitaker & Company Overview
Whitaker & Company is an Atlanta-based consulting firm
specializing in post merger & acquisition integration.
Since 2005, Whitaker and & Company has been involved in
merger integration engagements totaling over more than $25
billion for both domestic and international companies. We help
companies realize the full value of their mergers and
acquisitions via a full array of solutions and services
Whitaker & Company President Scott C. Whitaker is an
accomplished executive with expertise in corporate strategy
and operations with Fortune 500 companies, and is the author
of Mergers & Acquisitions Integration Handbook: Helping
Companies Realize The Full Value of Acquisitions, a
comprehensive resource to help companies create a scalable
post merger or acquisition integration process that accelerates
operating and business benefit goal realization.
For more information contact info@whitakercompany.com
