“Most acquirers are repeat offenders, not because they enjoy pain, but because they are under tremendous pressure to grow. Done right, growth by acquisition beats the pants off growth by any other means.”
Five Frogs on a Log, PricewaterhouseCoopers, 1999
Impact42 has assisted numerous organizations develop and implement winning business strategies through a series of strategic competencies:
- Acquisition Strategy
- Deal Evaluation
- Deal Execution
- Merger Integration
- Value Sustainment
- Risk Management
What is eMergent Change?
A recent study focusing on leveraged buy-outs, mergers, and takeovers discovered:
- 70 % failed to improve shareholder value
- 50% did not achieve the stated objectives
- Many did not even record objectives
Emergent Change unlocks the benefits in mergers and acquisitions by identifying existing and future value, as well as the changes needed to sustain and achieve that value. Emergent Change accelerates the critical transition period while helping executive teams avoid the pitfalls comm only associated with failed M&A activity. Emergent Change further defines a process to sustain and build momentum throughout the first year of the integration through a tailored integration program.
When Does a Company Need eMergent Change?
“Lawyers do deals. Leaders grow businesses”.
This statement may be true, but leaders will continue to be forced to seek value and growth t hrough acquisitions. The accelerated pace of M&A activity is due to the increased pressure to grow (size and shareholder value). Successful mergers begin during the pre-due diligence phase, when organizations set their strategic intent for acquisition activities. Leading successful mergers requires continual focus on preparing the two organizations for a major cultural and operational transition. The general principals of transition management apply, but the issues facing the transition team can be mitigated through good pre-planning and through the application of an integra- tion process that relates change to corporate value drivers and value preservation.
Our eMergent Change practitioners are experienced, senior leaders who have led or have structured integration and acquisitions programs. Based on this knowledge, our practitioners can be proactive in assisting you with your acquisition strategies and integration opportunities. Consider an eMergent Change engagement if you are….
- Lacking a formal acquisition strategy, or do not feel your existing strategies are sound, compelling, or being executed throughout the process
- Seeking outside validation or evaluation of a deal or business opportunity
- Looking for a strategic framework for evaluating the commercial value of an acquisition
- Launching an integration program and want to apply proven tools, templates and procedures for executing the change
- Experiencing delay or are becoming bogged down in an integration program.
- Needing to evaluate, develop and grow leaders and personnel who are responsible for the integration
eMergent Change Services
Impact42 has assisted numerous organizations develop and implement winning business strategies through a series of strategic competencies.
Deal Evaluation ~ A framework for linking operational and financial due diligence with analysis of opera- tional improvement and cost reduction opportunities to estimate deal value.
Corporate Integration Assessment ~ Explores and assesses the non-financial readiness of both organiza- tions for successful business integration. During the process we identify key integration issues, barriers and opportunities, bring focus to critical integration areas, assess the potential value-at-risk, and ulti- mately prioritize the integration quick-start activities.
Value Integration ~ This lifecycle approach to executing post-merger integration activities focuses on value sustainment, value realization, and value creation. Lifecycle activities include: implementing op- erational improvements and cost reduction initiatives; establishing an integration management office, tools and procedures; developing the new organization; resolving IT and process issues; and implementing decision support ( e.g. employee benefits, compensation and rewards programs and measurement systems).
eMergent Change Core Competencies
Corporate Integration Assessment ~ The CIA explores and assesses the non-financial readiness of both or- ganizations for successful business integration. During the assessment we identify key integration issues, barriers and opportunities, bring focus to critical integration areas, assess the potential value-at-risk, and ultimately prioritize the integration jump-start activities.
Pre-close Executive Workshops ~ We facilitate this workshop environment to assemble the collective knowledge about the strengths and weakness of the two organizations from selected business executives. The workshops help resolve potential misalignment concerning acquisition objectives, and help mobilize the leadership team around a commonly defined integration strategy and plan.
Enterprise Architecture Design ~ Facilitated workshops to design the blueprint for building an enter- prise-wide system that optimizes business performance. EAD encompasses the key foundational ele- ments of an integrated business: business model, strategy, organizational capabilities, process and tech- nology competencies.
Pre-close Quick Start ~ Stabilizes business value with pre-planned initiatives to stop the erosion of critical business value, employee turnover, customer loss, sales slippage, productivity decreases and synergy loss through establishing integration governance and a 100 day plan.
Integration Management Office ~ Establishes the integration program governance and infrastructure. Provides a “toolkit” of trained staff, tested tools, templates, methodologies and to-do lists to accelerate the integration.
Service Level Agreements ~ Reviewing and resetting user/ provider service quality and performance ex- pectations to levels appropriate for an effective shared services organization.
Risk Management ~ Framework for integrating the management of risk into the integration strategy, structure and processes to optimize the achievement of business objectives and stakeholder value.
Benefits
eMergent Change helps companies with their merger and acquisition programs in several ways:
- practical integration experience to integration assessment and value perspective.
- Increases and accelerates the benefits achievable to rapidly increase shareholder value.
- Reduces the risks of failure.
- Enables control to be gained quickly by preparin g the integration and value preservation activities prior to day one.
- Provides thorough integration management to stay on track and deliver the benefits.
- Integration experts who have done it before.
- Proven change accelerators allow faster project completion and better deployment of your resources while maintaining the focus of the project on its stated business objectives.