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- The U.S. Horizontal Merger Guidelines After One Half Century: Three Steps Forward and One Step Back.
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- The U.S. Horizontal Merger Guidelines After One Half Century: Three Steps Forward and One Step Back!
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Post Merger Control - an examination of tools for success measurement
Related topics Transaction advisory services Mergers and Acquisitions. Link copied.
Show resources Does your merger and acquisition integration playbook need updating cfo. Download KB. Download 1 MB. Download 2 MB. Read more. Can you cope with convergence? Are revenue synergies a must-have or nice to have? Do you have the talent and tools to integrate with maximum speed and minimal error? How can you avoid a culture clash during a deal?
Chapter breaker. Chapter 1 Advanced manufacturing Ahead of the pack or playing catch-up?
Indonesia Merger Control – Getting The Deal Through – GTDT
Prepare for a service-based future. Identify, quantify and execute revenue synergies. Asset-intensive manufacturing businesses tend to focus on cost synergies in potential deals, but the sector needs to shift its mindset to focus on substantial revenue synergies, too, if deals are to create value. Expanding the product portfolio or capturing more of the value chain such as the after-market business are two examples. What is the target doing that should be adopted to create an operating model fit for the future?
Prioritize people as much as processes and products.
Embrace new skills or risk hemorrhaging value. In acquisitions predicated on new capabilities, businesses need to connect with key talent to avoid losing their skills and knowledge. For manufacturers acquiring a tech company, are the coders the key? Do the salespeople have important relationships? Are the founders the key, and do you need to structure the deal to keep them engaged? Concentrate on cultural fit in cross-sector deals. Strategies that we have seen implemented include deploying a formal culture and change management road map, utilizing culture survey tools for employees, and a change action plan and regular monitoring of the culture change.
If a company is buying a business to build a solution in which its products are just one part, it needs to consider how its own sales teams will need to be trained and whether sales incentives need to be adjusted. Deal appetite across the banking sector remains strong. As deals are realized, it is critical to understand which synergy and integration strategies offer buyers the most value for their money. Focus on speed to value.
Steps to achieve the greatest value as efficiently as possible. Separate growth and synergy plans. Banks may not want to give up personnel, facilities and other capacity only to have to re-acquire them as they grow. But branch consolidations and divesting of assets and businesses are essential parts of a robust cost takeout program.
Skilled teams should deal with these and be held accountable for the results. Renegotiate to achieve economies of scale. Scrutinize contracts to determine whether they should be re-negotiated. For example, banks may use the same vendor for comparable services. Post-acquisition, one of those contracts may be shut down but additional negotiation can ensue when volumes are expanded. Set an aggressive timeframe and invest to meet the schedule. Introduce a centralized control hub of program management to drive everything forward, using people with proven skills.
This can break down barriers, help decisions get made, control risk, address problems quickly and drive the schedule, with transparent reporting. Keep the customer at the heart of the deal and identify potential complications. Establish a customer experience team across integration work streams to engage with key stakeholders and personalize customer experience, minimize customer attrition and offset that with new growth.
Preserve value by mitigating risk. Identify opportunities and vulnerabilities in your target operating model. Consolidate risk governance frameworks, recalibrate compliance and risk management functions, and align the finance function and oversight in the combined organization. Evaluate the business value chain, target operating model, and the markets where the combined business wants to operate. Invest appropriate resources in the design of the target operating model to realize synergies without risking the strategy of the combined firm. Establish a dedicated synergies team that can cope with the scale.
Identify the team responsible for synergy definition and tracking, and have them engage early with key departments. Create a formal communications program for cross-team collaboration as well as processes for documenting and distributing outcomes from key work sessions and decisions. Provide adequate coverage of foundational integration risks. Successful acquirers maintain an objective view of program issues and risks; and set a culture of transparency and openness so that program execution teams are empowered and encouraged to present factual information in a timely manner.
Mind the integration culture gap. Value is lost when staff in a newly acquired company loses morale. Sit down with major players on both sides, appoint culture champions and recognize the role played by informal leaders. Chapter 3 Consumer products and retail Different playbooks for different goals. Transformative consumer products and retail deals focused on allowing a smaller asset to grow require different integration plans.
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