The Obelisk & Shadow Model: Capitalize on M&A Value-Inflection Points

BTD's Value-Inflection Point methodology allows M&A executives to predict the critical events and junctures in the merger and acquisition process. It builds on an expert-practice database. It captures the expertise of seasoned M&A veterans.

The M&A-VIP approach gives less experienced team members access to this accumulated knowledge in an easy-to-use format.

With this, the M&A executives can plan a more thoughtful integration process with a much higher likelihood of success. They anticipate and avoid pitfalls. They focus attention and energy on things that really matter, not simply reacting to events.

BTD's clients experience fewer unpleasant surprises. They develop a greater capacity to react effectively to surprises that do occur. They capitalize on value-creating opportunities that others miss.

Once an M&A team identifies the M&A-VIPs, it must address them. This is complicated by the “human factor” – people are involved. Some of those people are obvious, but many are not. Companies unfamiliar with each other invariably present surprises. The complex interplay of persons and groups is daunting. As each company has evolved its own idiosyncratic ways (called "culture" by some), understanding how a situation will play out is fraught.

Each company's people neither fully know nor understand the other. In the stressful cauldron of an M&A integration, unintentional missteps become evidence of malign intent.

The Obelisk & Shadow Model (OSM) assists savvy executives to identify individuals and groups impacted by M&A-VIPs. It answers the "Who?" and "How?" questions once the VIP has answered the "What?"

M&A success requires prioritization and laser-focus. Integration compresses an extraordinary amount of work into intense periods. Many key players will be inexperienced in integration – learning on the job. Many of them are working together for the first time. Important activities often involve people far from the actual integration team. These include mid- and lower-level employees in HR, Finance, IT and cybersecurity, and operations.

The OSM provides action-focused analysis of each VIP. It drives advanced planning to avoid or capitalize on each situation. Using the OSM in conjunction with VIPs, executives move from reaction to planned management. They create value thoughtfully. They avoid problems and seize opportunities.

The OSM also helps M&A practitioners better to understand and use their understanding of culture – the target's culture and their own. By knowing what needs to happen and who will be involved, their questions become more practical. Cultural assessment moves from the theoretical to the practical.

BTD clients experience a dramatic shift of their time towards systematic management and away from firefighting. This ramps up their effectiveness and allows them to manage a broader portfolio of activity.

The OSM is the critical next step that takes M&A-VIPs from planning to action. Clients move from "What challenges will we face?" to "What must we do?"

BTD is hosting a free virtual round table on this topic at 4pm UK time on Wednesday, June, 26th.  Click here to register your interest.

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