M&A Integration: How To Do It. Planning and delivering M&A integration for business success

Everything you will need to enable you to plan and deliver agood integration.  From strategic theory to real lifepractice, numerous examples, tools, issues that pop up and how tosolve them.  Together with checklists for the large deliveryareas.  This is your handbook and guide throughintegration.

PREFACE xi

ABOUT THE AUTHOR xv

INTRODUCTION xvii

PART I THE STRATEGIC DRIVERS 1

1 M&A OVERVIEW 3

Chapter summary 3

What types of M&A are there? 3

How much should we pay? 5

Most mergers fail 7

Dene success 10

The M&A process 10

Strategic M&A process 14

Strategy: linking pre–deal and post–deal strategy 15

2 INTEGRATION OVERVIEW 19

Chapter summary 19

Integration objective 20

What is integration? 21

Integration strategies 22

Reason for success 23

Will we succeed? 27

Learning from mergers 28

Different mergers at different stages of the company life cycle33

What should we expect during the integration? 34

Transforming the business 36

3 PLANNING FOR INTEGRATION 39

Chapter summary 39

Model for integration planning 40

Integration checklist 44

What is 100 day planning? 45

Day 1 58

Information 61

Bringing the companies together 63

Planning for the dip in productivity and service64

Review integration readiness 67

4 INTEGRATION DRIVERS 71

Chapter summary 71

What a re synergies? 72

How deep to cut 74

The principles of integration 75

Budget for integration 83

Integration tracking 85

2nd wave integration 86

5 INTEGRATION GOVERNANCE OR STRUCTURE 89

Chapter summary 89

Put people in place 90

Responsibility and accountability 93

Controls in place at different levels 94

Board tracking of integration 94

Agree reporting requirements 95

Teaching integration in our company 98

Integration standards, tool kits, process 99

Risk workshop and risk management 100

Track progress 104

6 DELIVERY INTEGRATION MANAGEMENT 109

Chapter summary 109

Mobilize a merger team 110

Strategic delivery of integration 110

Roll out new procedures for managing projects 111

Integration Management O= ce 113

Integration management 115

Strategic plans, parallel planning process, detailed plans120

PART II THE FUNCTIONS 125

7 FINANCE 127

Chapter summary 127

Links with other parts of the integration 128

Finance readiness review 130

Financial integration strategies 132

Learning points for " nance 136

Outsourcing 137

Financial basics 141

Financial risk management 144

Benchmarks, key performance indicators 144

What infrastructure is needed? 145

Finance organization people 146

Processes and IT 146

8 IT 151

Chapter summary 151

IT perspective day 1 152

Assess readiness for integration 152

IT and integration strategy 154

Reasons for change in IT during a merger 156

Level of integration 157

Links with other parts of the integration 158

Issues during an integration 162

Do the basics 168

Integrate or consolidate systems 172

IT integration success 173

IT integration checklist 177

9 HUMAN RESOURCES 179

Chapter summary 179

HR for the integration (outside HR) 180

HR checklist 199

HR for the HR integration 200

10 COMMUNICATIONS 205

Chapter summary 205

Management communications 208

Communications overview 210

Communications for the whole integration 214

Communications perspective day 1 219

The integration of communications 220

11 SALES AND MARKETING 223

Chapter summary 223

Links with other parts of the integration 226

Sales and marketing overview 227

Brand 235

Culture of sales and marketing 239

Communication planning 240

Integration of sales 241

Integration of marketing 243

Customer perspective day 1 244

Revenue generation 245

12 SUPPLY CHAIN 249

Chapter summary 249

Supply chain perspective day 1 250

Level of integration how far to integrate 250

Links with other parts of the integration 250

Operating synergies 254

Process review 256

Management controls 257

Supply chain overview 258

Revenue 264

13 HEAD OFFICE AND PROPERTY 267

Chapter summary 267

Head once consolidation 268

Property, level of integration how far to integrate269

Property integration 270

14 PROCUREMENT, R&D, LEGAL, HSSE 273

Chapter summary 273

Procurement 273

R&D 277

Legal 280

HSSE (Health, Safety, Security, Environment) 281

15 BOOK SUMMARY 283

Tying it all together 283

The chain of events 283

Could we be better prepared for our integration? 284

The killer insights for integration 284

APPENDICES 293

APPENDIX 1 INTEGRATION TRAINING 295

APPENDIX 2 CULTURE DIFFERENCE

ASSESSMENT 297

APPENDIX 3 PEOPLE IN THE BOOK 299

INDEX 301

Danny A. Davis is a guest speaker at a number of theworld s top business schools on strategy and M&A and is aProgramme Director at Henley Business School for M&A. He bringsa unique background that combines experience as an internationalsportsman, sales and marketing in large corporate, a strategyconsultant and has been involved with integration for two decades.This background means he understands the theory but combines thiswith a proven ability to deliver M&A integration and largetransformations in highly complex organizations.

Danny has worked on deals from small to large, with a 100 mancompany taking over a 25 man, through to $6bn and $16bndeals.  His work includes 1–2 days with a client to set up theintegration, mobilization workshops and 100 day plans. Through to the actually planning and running of a $6bn deal across30 countries for 3 years.  He also helped manage one of thelargest HR transformations on the planet, showing his level ofpeople understanding.

Danny has just stepped down from being the youngest ever trustee(Non–Executive Director) on the board of the Chartered ManagementInstitute, also chairing the Marketing and Policy Committee, hecurrently sits on there Experts Panel .

He speaks at numerous conferences and recently chaired theM&A integration conference in Europe. He has written articlesfor Henley Business School, British Computer Society, CFO Europe,Developing HR Strategy, and had a 3 page profile written on him byCIMA magazine for leaders.

He brings a blend of strategic theory, practical experience andreal life war stories that makes him unique in this field.

Danny A. Davis, (MBA Bsc (Hons) DipM MCIM MCMI Cmgr CharteredMarketer) is a partner with DD Consulting, Henley BusinessSchool s Programme Director M&A and helps a largeinvestment fund.