Is Your Acquisition Integration Team Throwing the Deal's Value-Drivers Overboard?

IS YOUR Acquisition Integration Team Throwing the Deal's Value-Drivers Overboard? M&A isn't just about capturing market share; it's also a way to secure new capabilities, products, and customers. Whether you achieve these objectives depends on how Successfully you integrate with an acquired company. What is the composition of your integration team? ALL COMPANIES B-to-B COMPANIES B-to-C COMPANIES 6% Other 10% 48% 33% 67% Ad Hoc Team 19% Part-Time Team with Supplemental Staff 16% Full-Time Team with 19% 13% Supplemental Staff 11% 0% 7% Part-Time Team 11% 14% 13% Full-Time Team 8% DRAWBACK Ad hoc integration teams perform inconsistently and elongate the timelines. At what stage in the M&A process does your integration team begin integration planning? MONTH ALL 17% ONE 21% Opportunity Analysis B-to-B 13% B-to-C MONTH TWO MONTH THREE 52% ]52% 50% ALL Due B-to-B Diligence MONTH FOUR B-to-C ALL 14% Deal Negotiation 16% B-to-B MONTH FIVE 12% B-to-C Deal ALL 11% MONTH Finalization and B-to-B 10% SIX Anouncement B-to-C 13% ALL 6% Day One MONTH SEVEN B-to-B 0% B-to-C 12% 0% 55% Initiating planning during the due diligence phase keeps the integration plan focused on the deal's value-drivers and ensures early interaction with the target's employees-thereby increasing retention of key staff. BENEFIT Does your integration team manage operational due diligence? B-to-B COMPANIES ALL B-to-C COMPANIES COMPANIES 63% 68%) 54% Yes Yes Yes Having the integration team conduct operational due diligence generates feedback on deal feasibility, scopes resource needs appropriately, and identifies synergies and divergences early on. BENEFIT Source: "Strategy Implementation and Acquisition Integration: 2012 Global Corporate Strategy and Corporate Development Priorities Survey Results": http://slidesha.re/JenkRY Definition: "All companies" includes all respondents to the survey, regardless of their business model. Original File: http://bit.ly/MKIGII Growth Team MembershipTM (GTM) is a premier, subscription-based best practices organization affiliated with Frost & Sullivan M [email protected] O www.gtm.frost.com @Frost_GTM FROST O SU LLIVA N Copyright ©2012 Frost & Sullivan