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Mergers &
Acquisitions
Professionals in
Mergers & Acquisitions generally agree that 50-75% of
all deals never provide the benefits they promised when
they were originally presented, or take too long to
produce them. In addition Management generally feels
that only 40% are successful.
KPMG confirms that 80%
of all mergers fail because of Cultural issues. This is why
we focus on Cultural Due Diligence during the post merger
integration process.
Failures in M&A are traceable to:
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Growth targets for growth sake
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“Ego” gets in the way of rationale
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Insufficient homework
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Incomplete due diligence
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Unrelated diversification
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The most common reason:
Poor integration and
“business as usual”
At Paul Bergé
International we believe that mergers have the greatest
chance of being successful if:
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The strategy is based on filling gaps through
acquisitions.
-
Dedicated teams are created to manage well-tuned
Integration processes.
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All the facts are on the table.
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Plans are developed for people retention.
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There is a shared vision between acquirer and target.
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Short-term wins for acquired employees can be
demonstrated.
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Long-term wins for all are planned for and produced.
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There are similarities in chemistry and culture.
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Integration plans are implemented rapidly so as to
restore stability ASAP.
-
One doesn’t try to please everyone.
We are specialists in managing the M&A process from
start to finish. Our main focus is on post-merger
integration as this is the area that is most often
ignored or where the acquirer does not want to rock the
boat.
When working with a client we start by jointly defining
the M&A drivers:
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Access
to new Geographies
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Increase
the Customer base
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Access to new Technologies, Products, Processes, IP
and Skills
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Diversification of Product / Service offering
-
Cash flow
We then develop Goals for Successful M&A. This is then
followed by the following detailed steps keeping in mind
that we are not a law firm nor an accounting firm but
M&A specialists:
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Get understanding of the industry and market place
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Get participation and buy-in from critical employees
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Define success factors and metrics
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Align M&A strategy with corporate strategy
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Define communications needs
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Evaluate target selection criteria
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Define potential targets and how they
fit the strategy
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Approach short-listed targets
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Select the ideal target
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Apply criteria and valuation methods
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Reach agreement in principle with target through
submission of Letter of Intent (LOI)
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Provide Guidance for and support of the Due
Diligence process
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Manage Outsourced due diligence activities
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Review Due Diligence Progress Reporting on Regular
Basis
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Create Integration Team if different from due
diligence team (generally not recommended)
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Activate the integration teams:
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First
day plan
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Execute communication plans
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Corporate registrations
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Monitor integration activities and progress
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Take
corrective actions where required
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Conflict Resolution
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Corporate culture
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Evaluate feedback
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Manage transitions:
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Employees
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Suppliers
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Customers
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Customer Service
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Service providers
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Operations and programs
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IT, email addresses, networks and systems
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Corporate identity on stationary, buildings,
uniforms, vehicles, marketing materials
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Measure success and take corrective action:
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Adjust M&A strategies if required
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Transfer experience to next project
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Organize regular employee meetings for feedback
Call us to see how
we can help your organization.
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