17 Dec Connecting the Dots – Part 4
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.
- Develop your post-close Business Model & Integration/Improvement Plan iteratively during due diligence.
- Engage line management early in the process as designers of the future, not just as advisers or implementers.
- Use Due Diligence to test these objectives and plans – can you deliver post-close?
- Include detailed integration & improvement assumptions into your valuation model – synergy scale, timing, likelihood.
- Build and follow an objective pre-deal review process to encourage objectivity and avoid deal momentum.
- Shape and prioritise your post-close programme to focus on acquisition goals.
- Incentivise your leaders to take accountability for delivering acquisition, integration and improvement targets.
- 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.