Post Merger Integration

Post Merger Integration

Umbrex is pleased to welcome Florian Heitzenberger.  Florian has a BCG background, worked as Manager Corporate Business Development/Strategy for a global industrial goods company and has been running his own consulting firm focused on strategy, business model innovation, post merger integration and start-ups since 2018. Florian lives in Vienna (Austria) and is happy to collaborate on projects in Europe.

 

From David Burnie’s company blog, a ten-point checklist that can help make a post-merger integration successful.

 

For most companies, mergers do not occur regularly or recurringly, bringing with them a host of uncertainty and doubt. When two companies merge, it is a unique experience for both companies requiring a particular course of action, capabilities, and skills.

The Burnie Group team has supported numerous post merger integrations from $10M up to $1B across various industries, including insurance and financial services, professional services, pharma, beauty and cosmetics, software and technology, and senior living, to name a few.

Here are ten critical things to get right in every post-merger integration (PMI), no matter the merger type, size, or industry.

  1. Use the time leading up to the closing day wisely

The pre-closing period begins as soon as the due diligence is complete and both sides negotiate and agree upon the terms. Though this period may range from a couple of weeks to several months, we found that a typical pre-closing interval is between four and eight weeks. The pre-closing period is driven by the need to get all Day 1/Closing Day checkmarks in place, such as legal aspects, permits, financing, etc.

Knowing how much time is available before Closing Day will dictate the scope of work that can be realistically completed. From our experience, it takes at least a few days to get an integration project management office (PMO) and integration workstreams set up, including governance with roles and responsibilities.

Suppose you have only a couple of weeks. In that case, the scope of your pre-closing integration topics should focus on must-do legal aspects, financing, clear communication, and most urgent people-related topics.

If you have four to six weeks, a more detailed integration plan can be developed involving all relevant workstreams (e.g., technology, operations, sales and distribution, etc.)

If you have six to eight weeks, you will have the luxury of approaching Day 1/Closing Day in a very planned fashion. In addition to completing all of the above tasks, you can develop the target operating model for the integrated companies.

It is worth keeping in mind that the further out the Day 1/Closing Day, the more likely the merger news will slip through. Thus, the communication workstream should closely manage internal and external communication.

 

Key points include:

  • Friendly vs. hostile takeover
  • Human resource topics
  • The target operating model for the PMI

 

Read the full post, 10 Things You Must Know to Make Your Post Merger Integration a Success, on theburniegroup.com. 

 

Umbrex is pleased to welcome Paul Browne with Lexington. Paul is combines a wealth of experience in international blue-chip companies with an intellectual drive, curiosity for data, and experience in helping high-performing complex executives get outstanding results. He has lived and worked extensively across Asia, Africa, Europe and the Middle East. He lives with his author wife, (N.M. Browne) in Richmond-on-Thames, UK – useful for Heathrow.

Paul is an Associate at the Møller Institute at the University of Cambridge and also operates as an independent strategy consultant. Following a highly successful career within consulting then banking, he served in various law firm CEO and finance roles, and now focusses on consultancy to professional service firms.

After starting his strategy career with Bain & Company, Paul spent a decade in senior positions with Standard Chartered where he led the Board recommendation in the early 90s to exit the UK, US and Continental office network to focus on the fast growing markets of Asia Pacific and South Asia- a strategy that was not only ahead of its time, but resulted on SCB being the best performing FTSE 100 share in the year following the strategy’s announcement. He also led a global crisis team centred on India as well as being Regional Head, Sub-Saharan Africa. He then moved to Barclays Bank as Director for Group Strategy.

Paul completed his MBA jointly from Manchester Business School and HEC, Paris, also attending an executive programme at Harvard Business School which entailed study at Harvard, in China, and in Singapore as well as analyzing opportunities in India. His undergraduate degree was in Politics, Philosophy and Economics at Trinity College, Oxford. In addition, he also has a first class Oxford University degree equivalent in Archaeology.

Paul takes a data-driven approach to solving problems, informed by his wide experience and a strong thirst for new insights and approaches to analysing and solving business and people challenges.

Umbrex is pleased to welcome Jeremy Muench with Infinity Growth Partners.  Jeremy Muench has worked the last ~20 years in the B2B software space and most recently with Vista Equity Partners (leading private equity software investor) as a Managing Director and member of Vista’s internal operating team (Vista Consulting Group). Prior to Vista, he worked at a Vista portfolio company as COO and at McKesson Corporation and General Electric in several operating roles (Lean Six Sigma, post-merger integration, corporate development and strategy, system implementation, go-to-market effectiveness). Earlier in his career, he was a Bain consultant.

Umbrex is pleased to welcome Duncan Mitchell with OCC Business Services.  Duncan Mitchell spent over 6 years at McKinsey focused on the Energy practice. He specialises in transformation/turnaround and has been running his own consulting firm since 2016. Duncan has broad experience, first as a Chemical Engineer at the leading petroleum technology licensor, UOP and also in operations improvement at Arcelor Mittal – the world’s largest steel company. Functionally Duncan specialises in post-merger integration, performance measurement and management and strategic transformation through acquisition or restructuring.

He lives in Chicago IL by the airport and is happy to travel as necessary to serve clients.

Umbrex is pleased to welcome Amit Bhagat. Amit Bhagat brings together a combination of corporate and consulting experience.  In the corporate world, he was General Manager of a $300M business unit of a public consumer goods company.  In addition, he was Head of Strategy and M&A. Within his portfolio of responsibility, Amit led teams in each of corporate strategy; M&A and post-merger integration, business insights and analytics; and transformation.  In the consulting world, Amit was Managing Director at PwC Strategy& focusing largely on M&A related engagements – post-merger integration planning and execution as well as post-merger growth strategy. Amit is based in Toronto.

 

David Burnie’s company blog provides a plan for post-merger integration to help ensure a smoother process.

 

A post-merger integration or PMI is what happens following a merger or acquisition. PMIs are the complex process of combining and rearranging the merged businesses to find efficiencies and create synergies.

 

Points included in the article:

 

1: What makes a good PMI plan?

2: An example PMI plan

3: Common mistakes in a Post Merger Integration plan

 

Read the full copy of the Post Merger Integration Plan from the Post Merger Integration Knowledge Hub on The Burnie Group’s website.