Creating lasting value from mergers & integrations

Buy and build is increasingly part of growth and value creation strategies for both private equity backed businesses and corporates

This is an attractive strategy for those investing in emerging and high growth markets where competitive advantage can be gained from opening new routes to market through consolidation of fragmented markets or accelerating innovation by acquiring proven technology rather than undertaking in-house R&D.

Although, on paper these deals present clear commercial value, many do not realise their full potential from bringing two or more businesses together

Every deal is unique. Deal rationale as well as internal and external factors impact the levels of complexity and particular areas of focus in an integration. This requires adapting your approach to create lasting value from the deal.

Successful integration starts at due diligence where material issues and opportunities relating to integration of the 2 businesses should be understood.

Integration planning begins pre-close with a roadmap being developed which focusses building on the momentum of the deal through agreeing actions and priorities for the 1st 100 days.

The roadmap needs to focus on value, control and people maintaining a balance between integration and core business performance. ?

What does this mean?

-????????? Stay focussed on value: maximise the value through setting of clear objectives and targets that focus on what can be achieved from cost and revenue synergies alongside alignment of values & ESG priorities.

-????????? Stay in control: have the right data to drive decision making and have tried and tested processes to manage risk, costs, issues, and scope.

-????????? Bring people with you: effectively manage and communicate with employees, customers, and other key trading relationships through the time of uncertainty and change.