Managing multiple mergers at a time - ingredients for success

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MA leads are

• PROFESSIONAL,
• RELAXED,
• SUCCESSFUL.

Doesnt resonate with you? Lets see what we can
do about it
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Rule 1 Look in the mirror not the rear view
mirror

• What?
• Analyze and adapt your capability maturity to
  integrate successfully
• Why?
• Buyer company and manager abilities to integrate
  are mission critical
• How do we manage it?
• Select integration managers carefully
• Secure enough capacity for integration work

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Capability maturity problems
MA experience

MA experience gap


Resource gaps
People in corporate functions to care for
acquisition integration
Dedicated MA resources
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Rule 2 Shake and bake approach for acquisitions

• What?
• Structure and tailor the integration approach in
  due diligence
• Why?
• It is hard to drive a car while you are building
  it
• How do we manage it?
• Make use of predefined work catalogues,
  integration and management approaches, but tailor
  them to the specific case

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Rule 3 Minimize process risk

• What?
• A structured due diligence and integration
  process is mission critical
• Why?
• You dont have time to discuss process during
  integration
• How do we manage it?
• Define processes based on work catalogues

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Rule 4 Let others go through hell for you

• What?
• WYSIATI what you see is all there is
• you dont foresee what you dont know
• Why?
• Avoid disaster
• How do we manage it?
• Read the bookDeals from hell by Robert F.
  Bruner

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Rule 5 Appreciate the work. Dont underestimate
it.

• What?
• Complexity and effort of merger integrations are
  often ignored or guessed to be too low
• Why?
• Complexity models are not used
• How do we manage it?
• Leverage complexity models, see next slide

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Complexity and Effort of integrations
Volume
Restructuring
Structural complexity
Source Prof. Lucks, Siemens
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Rule 6 Fail early in due diligence

• What?
• There is nothing worse than a bad deal.
• Why?
• Dramatic cost of fixing things late in the
  process
• Failure is no fun
• How do we manage it?
• Let failure in due diligence be a viable option
• Drive for failure in DD, then for success

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Rule 7 Maximize the likelihood for success

• What?
• Define and plan for success
• Why?
• Reasons and prerequisites as well as the way to
  success is mission critical
• How do we manage it?
• Name and monitor success factors
• Let everybody know the way to success

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Rule 8 Make your day. Blueprint!

• What?
• On day one you need to execute the integration
  plan.
• Why?
• Flawless execution is key.
• How do we manage it?
• Define a detailed integration plan, together with
  the target. Before closing!

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Results Ingredients for success

• Analyze and adapt your capability maturity to
  integrate successfully
• Structure and tailor integration approach and MA
  process
• Avoid deals from hell
• Manage complexity and effort
• Drive for failure, then for success in due
  diligence
• Blueprint

http//www.mergerduediligence.com
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Please find more information here http//www.merg
erduediligence.com http//www.drkarlpopp.com