M&A Integration Efficiencies
- 1. M&A Integration Efficiency www.ddavisconsulting.com ©2017DDConsulting DD Consulting M&A Integration and Carve out
- 2. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 2 DD Consulting Integration Overview Governance Functions: HR, IT, Finance, Procurement, …. Efficiency Integration Management Office Integration Strategy Day 1 Synergy Growth: Sales & Marketing Communications Due Diligence Sign Close Interim State End State Valuation & DCF Playbook / Methodology / Tools / 6,000 line checklist
- 3. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 3 DD Consulting Managing Partner: Danny A.Davis Integration Director on small to large deals, from 2 days to 3 years Training: teaching you how to integrate Coaching: helping you through Consulting: planning and delivery along side you Integration Director or sitting on the steering committee Deals: $6bn, $3.75bn, 100,000 people, 30 countries, Speaking: Many of the worlds top business schools Author of “M&A Integration: how to do it: planning and delivery” Articles with Finance Director Europe (FDE), The Chartered Institute of Management Accountants (CIMA) , The British Compute Society (BCS) Developing HR Strategy, Journal of Brand Management, Corporate Financier, The Treasurer. Sits of the CMI experts panel
- 4. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 4 DD Consulting We Wrote the Book: M&A Integration – How to do it "An outstanding book for anyone involved in mergers and acquisitions. If you are in going to buy a company, you should read it." Jeffrey A. Krug, Professor of Strategic Management & Chair in International Business, Loyola University New Orleans "This book gives comprehensive overview to the topic providing a pragmatic and practice orientated guide" Bernhard Falk, Head of Practice Group PMI Excellence, BASF “Davis is the maestro of M&A, his book walks you through path of what to expect, brining clarity to the topic. Nice work.” Brent Peterson, HR Director, Preanalytical Systems Division, Becton Dickinson "Davis draws on his extensive experience to provide a useful roadmap of issues to consider. This book will help managers face the complexities of post-merger integration with confidence and insight." Phanish Puranam, Professor Strategy, London Business School “One of the most comprehensive and straightforward guides to M&A's I have read.“ Richard Beaven, Customer Service Director, Insurance Division - Lloyds Banking Group "The right balance of an academic foundation and the tinge of pragmatism that's needed to make it a tool/guideline people will work with." Andreas Joehle, CEO, Paul Hartmann AG “Danny has used his extensive experience to provide not just a superb set of recommendations but also a helpful discussion of the issues a company faces when merging or acquiring.” Professor Scott Moeller, M&A, Cass “Easy to read, a good reference book and well organized.” Agustin Diaz-Sanchez, Director M&A Amadeus “A great source for the how to accomplish this important aspect of M&A successfully". Frank Rydzewski, Professor, University of South Carolina
- 5. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 5 DD Consulting Our Approach to Consulting Page 5 • Become part of your team • Build in-house knowledge and integration capability • Focus on results • Provide quality independent advice • Quickly move to programme execution • Flexibly cover the needs of the business and organizational gaps • Work collaboratively with internal client teams and 3rd parties • Communicate frequently and transparently
- 6. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 6 DD ConsultingWhy are we different ? Vision & Strategy • All partners share a common vision of Post Merger Integration excellence • Partners selected based on past achievements • Make things happen, not reports. Analysis to support actions. Time to actual delivery is critical. Value Add • No Juniors. We provide services that we have done before with success, as senior advisers • We price you for what you will see on projects. Not for our infrastructure • Effective management of Internal resources. Value and grow client competencies Team Spirit • Partners have worked in multiple countries and understand business cultures • A highly cooperative partner culture. • We take pleasure in sharing and working together Independence • We are not constrained by utilisation rates of our teams. No juniors. • We have no internal conflicts of interest in terms of IT, audit, or strategy services. No bias in our advice. Technical Expertise • Consulting, corporate and academic capabilities at the highest level. • Functional, operational integration experiences and general management perspective. • Strategic, M&A and transformation expertise. We optimise transactions
- 7. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 7 DD Consulting M&A Integration Training: Overview Governance Functions: HR, IT, Finance, Procurement, …. Efficiency Integration Management Office Integration Strategy Day 1 Synergy Growth: Sales & Marketing Communications Due Diligence Sign Close Interim State End State Valuation & DCF Playbook / Methodology / Tools / 6,000 line checklist
- 8. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 8 DD Consulting Efficiency: Check List Overlap & Duplication BottlenecksStandardisation Waste Cuts due to strategic change
- 9. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 9 DD Consulting Top lessons learnt • Set up integration structure early, roll out checklists, tools and template early. Help get the integration running faster. • IMO should focus on the inter-dependencies between individuals and workstreams to ensure nothing falls down the gaps • Ensure good fast decision making, good governance - avoid waiting for the “Rolls Royce” solution – decide when 80% sure • Focus on growth fast, the sooner we start selling more, the better - avoid the dip, business continuity comes first • Use experienced line managers where possible, backfill with interims or consultants • Explore further value and synergies in a Business Development project 6-9 months after closing • Ensure continuity between strategy and Integration approach • If you are going to cut, do it as soon as possible and with respect for the individual • Lookout for misinformation and political manoeuvring – change curve • Ensure integration resources are prioritized in the right areas – leadership, IT, Sales HR • Don’t wait until you know everything before you start executing quick wins • Understand the business/PMI complexity of the acquired business early Action 4 Our experience of acquisition integration is that there are recurring risks which, without identification and mitigation, can de-rail large programmes © 2017 DD Consulting. All rights reserved © 2017 DD Consulting. All rights reserved © 2017 DD Consulting. All rights reserved
- 10. © 2017 DD Consulting | www.ddavisconsulting.com | danny.davis@ddavisconsulting.com Page 10 DD Consulting Other M&A Integration Topics you should be thinking about HR M&A Integration training Course Improve Decision Making 100 Day Planning or Functional Planning Do you fully understand Technology Finance Procurement Sales & MarketingOperations FacilitiesCommunications Playbook Integration Management Office (IMO) Integration governance Culture Assessment Day 1 Executive Alignment Synergies Integration Efficiencies Integration Strategy Coaching your deal Risk Workshop Knowledge Management
- 11. www.ddavisconsulting.com ©2017DDConsulting Our Partners Danny A. Davis Ian Nelson +44 (0) 77 99 678 088 +44 (0) 7803 888 585 danny.davis@ddavisconsulting.com Ian.Nelson@ddavisconsulting.com Derek Ingle Calum Byers +44 (0) 7776 171 440 +44 (0) 7740 533 007 Derek.ingle@ddavisconsulting.com Calum.byers@ddavisconsulting.com DD Consulting M&A Integration and Carve out