Merger Integration Planning & Execution
Fast forward to value
Mergers are back in the spotlight. Of course, nobody ever really thought they went away – because inorganic growth will always be a central component of any serious long-term growth strategy. Now that the economy is showing signs of life again, companies are reexamining their ability to get the most value from mergers.
Every deal is different, so it’s difficult to predict in advance what gaps you’ll need to fill on your way to smooth integration. An effective practice is to work with an adviser who brings many different strengths. That’s where we excel. Our firm is widely recognized for our ability to deliver the full range of capabilities needed to help companies in their efforts to meet the challenges of integration, primarily because of our access to resources with experience, knowledge and skills in such areas as integration strategy, synergy estimation and tracking, tax optimization, customer experience, employee experience, technology integration and risk management. All at the scale required by the unique circumstances of each merger. Our teams can make all the difference when it comes to helping you in your efforts to achieve value on schedule, anywhere in the world. Learn more about the market offering.
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How will you be judged?
There’s not a lot of middle ground when it comes to merger integration. Transactions either create or destroy value. And when things go wrong, it’s usually for predictable but avoidable reasons such as inconsistent operating models, incoherent organizations, inefficient processes and incompatible technologies.
That makes it easy to adopt a bunker mentality when facing integration – just get through it now, and we can worry about value realization later. But there’s a better way, starting well before a deal is even inked. In fact, companies that are the most successful at merger integration start mapping the path to value during due diligence. Risk management, business continuity, stability – all are fundamental to successful integration and all can lead to an issue-free Day One. How quickly can the two organizations start capturing value as one? That’s how merger integrations are judged today.
How we can help
Every deal is different, so it’s difficult to predict in advance what gaps you’ll need to fill on your way to smooth integration. An effective practice is to work with an adviser who brings many different strengths. That’s where we excel. Our firm is widely recognized for our ability to deliver the full range of capabilities needed to help companies in their efforts to meet the challenges of integration, primarily because of our access to resources with experience, knowledge and skills in such areas as Integration Strategy, Synergy Estimation and Tracking, Tax Optimization, Customer Experience, Employee Experience, Technology Integration and Risk Management. All at the scale required by the unique circumstances of each merger. Our teams can make all the difference when it comes to helping you in your efforts to achieve value on schedule, anywhere in the world.
In addition, our comprehensive methodology is designed to help companies put merger integration initiatives on the fast track. We have identified a standard sequence of activities and milestones that must be reached in each merger integration and have developed specific tools to help companies in their efforts to achieve them. Results databases, accelerators, sample deliverables, checklists – there’s no need to reinvent the wheel when you’re working with a team who’s been there and helped companies get it done.
Deloitte’s merger integration services are designed to help companies in their efforts to:
- Exceed synergy targets using a methodical top-down and bottom-up approach
- Drive discipline in execution by establishing early credibility and quick victories
- Integrate diverse systems and processes using rigorous integration toolsets
- Speed integration by focusing on people and change management
- Avoid business disruption by holding people accountable for established targets
Six ways to get more value now
We’ve helped hundreds of companies around the world in their efforts to get through some of their toughest merger integrations. Here are a few lessons we’ve learned along the way.
- Put first things first. A successful merger integration is achieved in stages, with each victory building on the next. Identify the systems and processes that need to be in place on Day One and do whatever it takes to get them done. Then move on to the next set of critical tasks.
- Show results quickly. Deliver tangible results as quickly as possible. Develop your merger integration plan to deliver benefits early — favoring projects that can generate value quickly.
- Be precise. Many merger integration benefits get lost in the shuffle — never to be found. Develop detailed synergy targets, working from the top down and from the bottom up. Hold people accountable for meeting them.
- Use the right tools. A rigorous merger integration toolset can help you stay in control when things get crazy. It takes time and effort to get the right tools in place, but a small investment can pay big dividends over the course of the merger.
- See the big picture. Although short-term goals will command most of your attention, don’t lose sight of the big picture. Define a clear end-state vision for the merger integration and develop a long-term migration plan to get there.
- Don’t forget your employees. A corporate merger is a big deal — especially for your employees. It will occupy their minds, keep them awake at night and drive them to distraction. The only way to address the problem is to tackle it head-on. Make HR, cultural issues and communications a top priority.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.