Post-merger Integration Post-merger Integration

Post-Merger Integration

You’re probably aware of the statistics around failed M&As. Often, finalising the deal is the easy part – achieving the planned synergies from the merged entity is harder.

The essence of our approach

The CXOs and the CEO become the project stream leads, assisted by their subordinates

A Benefits Case Scorecard is created from the goals of the M&A, and we orient the project around achieving the most critical targets on each of the Financials / Internal Processes / Staff / Customers perspectives

Company Vision is positive and clear, and progress towards achieving it is communicated frequently to staff

We focus the business (and our Change Management approach) on a positive view of the future, rather than allowing an excessive discussion about the (inevitable) short-term discomfort

Also as part of the Change process, we help staff to understand the cycle they will (naturally) go through, emphasising that this is a natural part of moving towards something new

Keeping the project on-track and achieving deliverables on time is critical to the success of the M&A, and we encourage quick and decisive action against anyone attempting to be obstructive

Our approach

Our approach has been shown to provide the Client with valuable benefits, including:

Very low staff churn

Minimal disruption to the business – for example, a client was actually able to grow Revenue and Profitability during an Integration

Management own the work that's delivered – it’s not just imposed on them by a large consulting team

The merged organisation is given a strong platform for future growth

Case Study

We achieved revenue and profitability growth as well as low staff churn during a large integration, despite a global recession and a deflationary sector environment

Client: One of South Africa’s Top 3 B2B Internet Service Providers (ISP)
Industry: ISP

Challenge

The acquisition had already happened by the time our engagement began. The two companies (annual turnover of about R1.2Bn) needed to be integrated quickly – that involved restructuring the management team, getting management and staff to work together, moving the whole firm to new offices, systems integration and creating a new Value Proposition and cascading it throughout the organisation.

Solution

The CXOs and other senior management became the project stream leads with overall delivery and reporting to the holding co managed by the consultant and the CEO.

Other consultants (e.g. for Systems Integration) were brought in as required.

Approach

Working with the CEO, our approach was to speed the company up through the integration, not slow it down. Creating lots of energy in an integration is key to getting staff motivated about how good the end result will be for them. There is no reason why 'job security' and 'company growth' cannot be believable if the message is authentic and properly communicated.

Result

The company grew Revenue and Profitability, despite a deflationary business environment (data) and a global recession (2009 / 10).

Staff Churn through the integration was below 5%.

During our project the ISP won its most valuable client – an internet network (using a terrestrial and VSAT solution) in 16 African countries for a South African-based multinational bank. We assisted by providing the Project Director for the network roll-out.