Mergers & Acquisitions Consulting
Post-merger and integration projects are critical for enabling almost every merger, acquisition, divestment or joint venture. Based on years of practical, hands-on experience, AXIA has developed the Value Integration Method TM a program structure and methodology to enable a company to quickly execute a merger or divestiture.
- Strategic Alignment – There are different ways to execute post-merger IT integration projects. Each alternative is based on the risks, capabilities and the strategic intent of the M&A activity. During the Strategic Alignment step, IT determines the right scope, approach and organizational structure for the project.
- Pre Day 1 Activities – Before any merger, acquisition, divestment or joint-venture, there are extremely important steps that must be executed before “Day 1”. Having a structured, fast-paced, experienced organization execute the Pre Day 1 activities will be critical for your organization’s success.
- Stabilize & Retain – During the first 30 to 90 days after Day 1, most organizations will focus on value retention, stabilization and potentially a few low-hanging synergies.
- Achieve Synergies – Once the organization has stabilized, IT is often called upon to help the business achieve the benefits that drove the M&A activity. Projects typically include cost reductions, new product & services, CRM integration, supply chain integration, procurement optimization, etc. IT specific projects are also often launched to achieve synergies. These projects include application rationalization, infrastructure integration, IT process improvement and other activities to integrate and optimize IT.
Successful post-merger IT integration projects have the following key success factors in common:
- Realistic and Understood Goals – The IT project needs to be aligned with the reasons for the M&A activity. Running a post-merger IT integration project for a company that may sell off assets is different than running a project for a company that needs supply chain integration. Having a clear understanding of the true business goals will give your effort a laser focus.
- Fast-Paced Organizational Structure – All post-merger IT integration projects are dynamic, fast paced efforts that need flexibility and rapid response. Implementing both cross functional reporting and a can-do management structure will be critical for your success.
- Focused Program Management – A Transition Program Office (TPO) structure is needed to keep the project on track. Each area needs to have clear assignment of responsibility and clear reporting requirements that are effective and reasonable.
- Key Leadership Access and Support – You need both the support of the key business leaders and access to them so you can get key issues resolved. Nothing will sink efforts faster than a program without access to the key decision makers.
- Experienced Team Members – Post-merger IT integration projects are not like typical IT projects. Seed your team with experienced IT professionals who have executed these type of projects in the past.