We first understand, then design and develop plans for combined organizations.
We service three types of healthcare firms when it comes to post-merger integration. The first are those completing deals within the same sector from which the acquirer boosts their portfolio, pipeline or technological capabilities within a core market. The second is a “vertical” integration, where the acquirer adds a new business unit to its operational (supply) chain enhancing its capabilities. Less common, but equally challenging post-merger, would be the integration of assets or a business unit into a firm following a “congeneric” deal where an acquirer gains something “new” outside of its core focus. Perhaps obviously, the first two type of clients are the most common (which is in-line with increasing industry specialization), while the latter type involves larger firms looking to diversify.
We follow a rigorous framework for post deal implementation & integration to protect customers from disruption (allowing managers to grow the business), using process discipline that emphasizes simplicity while optimizing for speed. We establish a process for defining, managing and executing. This begins with helping the acquirer’s senior management establish a set of M&A integration principles that will help direct the actions of integration teams. Explicit guidance on M&A integration fundamentals gives people a collective sense of purpose and priorities. If teams are left to figure things out on their own by inference or conjecture, they are more likely to veer off target, pursue conflicting agendas, and delay or make poor decisions.
Defining the integration strategy – including governance – is next and a key part of our offering. Just as people can be challenged to perform better when they are confronted with more demanding expectations, they also are motivated to upgrade performance when they are given a clear sense of direction. Those who structure integration goals provide a focus for organizational resources. Many of the conventional problems associated with M&A are a derivative of people doing tangential work, blindly, or not doing work at all for fear of doing the wrong thing (in the absence of guidance).
Road-mapping is essential. Organizations need well-charted routes and specific destinations. As always, where there is much to be gained, there is also downside risk. Integration matters more in some types of mergers than others, and it matters more in some functions than others, depending on the rationale behind the deal. At least two months before the deal closes, the integration strategy, processes, and structure should be determined.
Our Post-Merger Integration involves:
- Synergy Levers. We pull on three levers – speed to realize savings quickly, mix to increase percentage of savings from headcount reductions, and depth to increase total cost reductions.
- Ownership. We define goals, shape visions, approve plans and make trade-off decisions.
- Coordinate. We plan, track, provide guidance and specialized support to resolve interdependencies and rapidly escalate issues.
- Integration. We ensure Day 1 readiness, through detailed workplans, delivering cost and revenue synergies.
Our team of M&A advisors start working on contingencies early and do not avoid discussions about potential post-merger problems. Unfortunately, one plus one sometimes equals less than two. Every merger will have some negative synergies such as turnover of key talent, sales losses, incompatible systems, productivity declines, or something else. We exercise inspired leadership while maintaining full transparency in an environment of controlled chaos. Our collaborative approach to integration with the target’s leadership team is the key to unlocking – and preserving – not only value in the assets required but also the capabilities systemic within the firm.
We provide the service to a broad range of firms and are not constrained by a company’s domicile.
It is difficult to be over-prepared. We think ahead, identify major risks, determine their likelihood, and develop plans to eliminate or mitigate them. We integrate flawlessly achieving milestones on time and on budget. However, we do not only measure success – mistakes should be identified and documented so they are not repeated in the future.
We follow a rigorous framework following an integration to protect customers from disruption and grow the business, using process discipline that emphasizes simplicity while optimizing for speed. We establish a process for defining, managing and executing. This 2-minute survey will help us understand where you are in your process, and to what extent our Post-Merger Integration offering is right for you.