Connecting the Dots – Part 4

Connecting the Dots – Part 4

Successful M&A secrets; mergers and acquisitions

PART FOUR – FINAL PART

This is the concluding part of a series of articles by BTD Founding and Managing Partner Carlos Keener

Study after study still puts the failure rate of mergers and acquisitions somewhere between 70% and 90%. Some however have managed to turn acquisition and integration into a true competitive differentiator. What makes these firms consistently successful at M&A, and what can the occasional acquirer learn from them?

In conclusion, here’s a quick checklist:

ACQUISITION & INTEGRATION FOR THE POST-CRUNCH ECONOMY: A CONNECTED APPROACH

Develop post-close objectives alongside acquisition goals.

  1. Develop your post-close Business Model & Integration/Improvement Plan iteratively during due diligence.
  2. Engage line management early in the process as designers of the future, not just as advisers or implementers.
  3. Use Due Diligence to test these objectives and plans – can you deliver post-close?
  4. Include detailed integration & improvement assumptions into your valuation model – synergy scale, timing, likelihood.
  5. Build and follow an objective pre-deal review process to encourage objectivity and avoid deal momentum.
  6. Shape and prioritise your post-close programme to focus on acquisition goals.
  7. Incentivise your leaders to take accountability for delivering acquisition, integration and improvement targets.
  8. Assign experienced people to co-ordinate integration, and give them time and space to be effective.

Carlos Keener, December 17, 2012

The full article Connecting the Dots can be downloaded as a pdf by clicking here.