Successful Deal Integration

Course Overview:

A key part of any acquisition has always been the integration of the target’s business with that of the acquiror. However, in the past many deals that have initially been praised for their strategy and execution have foundered on their poorly planned and/or executed post-acquisition integration process.

Recently this area – not regarded as particularly “glamorous” or exciting by both principals and advisers – has received renewed attention, with many different theories and practices being put forward. But which are the best practices to follow? And how to avoid the pitfalls?

This programme is aimed at both principal and advisers, particularly those with a working knowledge of the M&A process. It begins with a consideration of the key reasons why buyers enter into acquisitions, and shows how the focus on increasing shareholder value should guide the integration process from the start and throughout.

The course then moves onto a detailed consideration of the specific areas in which integration can occur in any particular transaction, in every case tying in with the acquiror’s overall purpose of safeguarding and/or increasing revenues while also maximising operational cost synergies. The course is purposely designed to be extremely practical and will work off real transaction case studies.

Course Content:

Introduction to SDI

• Remembering the purpose of the deal – “Value creation”
• Shape and identity of the post-deal firm
• Linking pre-deal strategy to post-deal integration
•  ‘Survivor’s syndrome’
• Doing the Deal, Planning for SDI
• Identification of synergies
• Identification of key “value” points
• Role of due diligence
• Management of the combined group

Key Decisions for the SDI Process

• Speed – two approaches
  • Rapid (Anglo-Saxon) – The “Hundred Days”
  • Measured (Continental European)
  • Balance of pace and risk
• Planning and risk management:
  • Establishing integration objectives
  • Integration governance and structure
  • Establishing timeline, speed, cost and control
• The SDI Executive Team:
  • Composition
  • Culture awareness and management style
  • Reporting and planning
  • Authority and decision making
  • Overall control – “The Guiding Brain”
• Publicity and communication strategy:
  • Internal
  • External
  • Different audiences

SDI for Revenue Synergies – specific areas

• Sales and marketing
• Distribution
• Manufacturing
• Research and development
• Advertising

SDI for Cost Synergies -specific areas

• Central overhead
• Procurement
• Human resource (including management)
• Legal and intellectual property
• IT and systems

Summary

• General Principles
• Golden Rules

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.