Proven strategies and tactics to manage the integration of acquired and/or merged companies
Mergers & Acquisitions Integration Handbook is a comprehensive resource to help companies create a scalable post merger or acquisition integration process and framework that accelerates operating and business benefit goal realization.
* Includes tools, templates, forms, examples and checklists to provide a no nonsense "handbook" style approach to managing an effective integration.
* Helps integration managers quickly get up to speed on various integration challenges, including guidance on developing detailed operational and functional integration plans to support flawless execution.
* Reveals how to avoid integration failure by establishing an in-house integration management office to handle integration projects.
* Includes a sample integration playbook that can be used to create a core competency within companies to support ongoing integration activity.
Botched integration is the number one reason mergers fail. Mergers & Acquisitions Integration Handbook shows you how to develop, execute and implement merger integrations and business strategies to realize your organization's mergers and acquisitions goals.
SCOTT C. WHITAKER, CMC, is President and CEO of Whitaker & Company, an Atlanta-based consulting and project management firm specializing in helping companies to develop, execute, and implement merger integrations and business strategies designed to achieve growth. Since 2005, Whitaker & Company has been involved in merger integration and strategy and operations projects totaling more than $25 billion for both domestic and international companies.
CHAPTER 1 Introduction 1 Who Should Use This Book? 1
How This Book Is Set Up 2
Chapter Summaries 2
AWord to theWise 4
CHAPTER 2 Mergers and Acquisitions 101 and Assessing Integration Complexity and Risk 7
Mergers and Acquisitions 101 7
Determining Post-Acquisition Integration Scope 8
Assessing Integration Complexity and Risk 11
CHAPTER 3 Making the Business Case for Integration 19
How to Improve Performance 19
The Most Complex Areas 21
Making the Business Case for Integration Support 23
The Challenges of Integration 24
Integration Success Factors 29
CHAPTER 4 An Introduction to Integration Planning 31
Integration Activities 32
Integration Timing 32
Integration and Business Planning 33
Integration Support 35
CHAPTER 5 The Pre-Planning Phase 39
Key Activities 39
Reviewing the Planning Documents 40
Assessing Potential Challenge Areas 42
CHAPTER 6 The Importance of Due Diligence 47
Due Diligence Documents Lists 48
A Few Words about IT Due Diligence 59
CHAPTER 7 Establishing an Integration Management Office 61
Setting Up an IMO 63
Determining Functional Resource Commitments 66
Dedicated versus Matrixed Resources 68
Setting Up an Integration Project Charter 69
Setting Up an Integration Governance Structure 72
CHAPTER 8 Executing Your Integration Plan 75
Functional Work-Plan Elements 76
Integration Work Streams 77
Functional Work-Plan Quality 79
Functions Requiring Extra Attention 82
CHAPTER 9 Planning Your Integration's End State 87
How to Know When an Integration Is Finished 88
The Typical Process: Roles, Responsibilities, Tracking, and Finishing Well 88
CHAPTER 10 Effective Communication Planning 95
Communication Planning Objectives 95
Guiding Principles for an Effective Communication Plan 96
Establishing a Communication Matrix 97
A Proper Communication Process 101
CHAPTER 11 Cultural Integration and Assessment 107
Managing Cultural Integration Activities 107
Culture and Change Management 112
CHAPTER 12 The Talent Assessment Process 115
Talent Assessment Guiding Principles 115
Talent Assessment Objectives 116
Evaluation Tools for Assessing Talent 117
Retention and Separation Guidelines and Policies 118
Dependencies for Talent Assessment and Retention and Separation Activities 123
Things to Avoid 125
CHAPTER 13 Synergy Program Management 127
Effectively Managing Synergies 128
The IMO's Role in Managing a Synergy Program 129
A Typical Synergy Plan 130
Best Practices 137
CHAPTER 14 Information Technology Integration 139
IT's Role within an Integration 140
Day One Planning 144
The Three Risks 146
CHAPTER 15 Integration Feedback: Lessons Learned 149
Goals and Tools of Lessons Learned 149
Getting Feedback and Making Adjustments 150
Collecting Post-Integration Feedback 151
Additional Tips 153
CHAPTER 16 Creating an Integration Playbook 157
Playbook Contents 157
Playbook Elements 159
How the Elements Work Together 161
Applying the Playbook 162
About the Author 163
About the Website 165
Praise for Mergers & Acquisitions Integration Handbook
"This book is a valuable guide from someone who has experienced the real-world challenges of mergers and acquisition integrations. Unlike many technical manuals or standard consulting advice, Scott's handbook is the comprehensive 'owner's manual' for any executive charged with getting real value out of an acquisition. It has the basic instructions for executives facing their first integration to more advanced techniques and tips for seasoned executives, and will be valuable to any executive charged with integrating an acquired asset."
-John Hogan, Chairman and CEO, Clear Channel Media and Entertainment
"This book is a 'must have' for any organization implementing an M&A strategy to grow top line revenues, create scale for improved margins, or both. Scott has created a blueprint that ensures newly acquired assets can be seamlessly integrated into existing businesses, and he has done so in a very practical way. While the content of this book centers on M&A integration, the results of leveraging its insights will surely be categorized as 'organizational leadership' by your shareholders."
-Doug Matheson, Vice President, Strategic Marketing, Ericsson, Inc.
"An extensive primer for anyone charged with the intricate task of integrating newly merged corporate entities. A well-structured approach that aptly breaks down the complexities of the integration process in an easy to digest, step-by-step fashion. This handbook takes you from concept to implementation ready."
-Craig J. Tindall, Senior Vice President, Operations and Facilities, Grady Health System
"Without question, a remarkably complete reference guide to merger and acquisitions integration for both newcomers and professional managers. Written by a merger and acquisition practitioner, this handbook walks us through the entire process in the same way an airline pilot goes through the preflight checklist before takeoff. The bottom line is that you have to check all of the boxes to maximize enterprise value."
-David H. Stone, Managing Partner and Principal, New England Consulting Group
"The M&A Integration Handbook is a valuable tool for any individual or team tasked with bringing two entities together. A great equation for performance is 'Performance = Potential - Interference.' This handbook is an excellent tool for minimizing interference and optimizing performance, keeping the focus on task."
-Bob Hellyer, former CEO & president
"The M&A Integration Handbook is an essential resource for those tasked with managing the integration of an organization following a merger or acquisition. Through Scott Whitaker's extensive M&A experience, he provides an in-depth road map to help insure a successful integration and provide a leg up on achieving the vision and goals of the transaction. It's a must-read that provides a comprehensive framework that will prepare you for the task, enhance the process, and insure a better result."
-Bob Owen, President, Broadwell Associates, Marketing & Communication Consulting