The key to effectively executing acquisition integration is to integrate where it matters. AaronRichards works alongside clients to make deals pay off.
Experience and research demonstrates that the majority of mergers do not create shareholder returns and several do not work at all. In many cases the challenges faced by merged companies relate to difficulties in the merger-integration process, rather than to the underlying strategic rationale.
AaronRichards' merger integration service offering is anchored in the depth and breadth of experience our consultants have gained over the years. Our work provides a comprehensive but flexible integration framework.
Integration Management Office
We begin by establishing a small and flexible integration management office (IMO) where a centralized program management team made up of AaronRichards experts and staff from the merging companies supports the pre-close planning and post-close implementation. Modular teams are then deployed as needed to support the different functional areas. These teams take advantage of AaronRichards' deep expertise and latest thinking in business strategy, operations, supply chain, back-office operations, information technology, and change management. The IMO supports the teams in making the countless and often complex decisions necessary to achieve joint objectives. In essence, all teams—AaronRichards, client, and target—work together to achieve overall merger objective
From the IMO, our work is geared toward achieving three main objectives:
1. Achieving a smooth Day 1 transition with no business disruptions
2. Accelerating the process of identifying and capturing synergies
3. Integrating the businesses into the future-state organization
Achieving a Smooth Day 1 Transition
The foundation of a successful integration is a rigorously planned, monitored, and managed process. AaronRichards consultants have extensive experience in managing large multinational organizational transformations such as a merger. With proven program management tools for handling all aspects of the integration, the IMO supports all planning and tracking activities in order to create a seamless Day 1 transition for all functions, business units, and regions.
A centralized program office allows for continual communication among all parties and clear management of the integration. From the program office, the integration team has a clear view of the merger’s progress—from opportunities for capturing value to potential threats that could jeopardize the deal. The IMO is best positioned to apply risk-mitigation measures to catch the problems early before any damage is done.
Accelerating Synergy Capture
Using AaronRichards's proven Merger Integration approach, we maximize synergy capture by quickly identifying available sources of value and laying the foundation for a speedy execution following the close; speed is essential in demonstrating to investors the merits of the merger. We often use a clean team at this point. The team is made up of AaronRichards consultants who receive and analyze strategically sensitive data from both parties and report the contents (in the aggregate) to better inform decisions that can accelerate value capture. In the event the deal does not close, all data is disposed of safely, ensuring neither party (buyer, target, or consultant) is tainted by confidential information.
Our first focus is to limit any negative impact on customers, employees, and other key stakeholders immediately after close. We then leverage our expertise to improve cost synergies in areas of highest priority, including manufacturing, sales, procurement, supply chain, and back-office processes. At the same time, we apply our industry knowledge to launch revenue and growth strategies for the combined entity. AaronRichards' deep functional knowledge ensures value capture as well as risk mitigation during implementation.
Integrating the Businesses
The goal of every merger integration is to combine two organizations into one as quickly and seamlessly as practical. AaronRichards' approach draws on change management and transformation experience—launching retention strategies to keep key people, addressing cultural differences between the two companies, and developing the future organizational structure and operating models. Combining IT systems is also a challenge. Here, we provide business process redesign, technology strategy, technology portfolio, and IT generational upgrades to combine two IT organizations into one that is able to support the company’s future business requirements.