Post Merger Integration
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This document discusses post-merger integration and outlines a Six Sigma driven process for rapid integration. It notes that value is created after an acquisition when the merging organizations collaborate. However, many acquisitions fail to meet expectations due to poor integration processes. The document then introduces an adaptive Six Sigma integration process built on best practices that can help transform an organization within one year of an acquisition with precision. It also notes that the company providing this process can help organizations lacking integration capabilities.
Post Merger Integration
- 1. Copyright © J. Anthony & Company LLC Six Sigma Driven Post Merger Integration Focus on Value Realization Integration Mission Strategic acquisitions are justified on the potential value The mission of post merger integration is to transform they are anticipated to create. Many acquisitions look the organizations with the least amount of destruction great on paper. Yet no matter how attractive the (loss of key people and capabilities, interruption of opportunity, value is not created to the buyer until after customer services, and supplier unrest) which results in the acquisition, when people from the two organizations the new entity performing better than the two did collaborate to create the expected benefits. This separately. To achieve expected results, integration collaboration relies not only on the will and ability of actions begin immediately at closing when decisions people in the merging organizations to work together, should be made on important issues such as people, but on them having a formalized road map to measurements, strategies, and resources. Making these accomplish the integration successfully. However, decisions requires management techniques different acquisitions are notorious for not meeting expectations from those of running day-to-day operations. Successful due to poor post merger integration processes resulting implementation requires transformation practices and in performance drifting, roadblocks, unclear skills specific to the management of the integration expectations, politics, and failures to execute the plan. process. Based on best practices in Post Merger work and Total Quality, we have developed a robust modular integration process derived from Six Sigma Adaptive Six Sigma Process for Rapid methodology that will help you transform your organization. Integration The Challenge Speed and control are critical to successful integration and they can only be achieved through a coordinated Ideally, the acquiring organization takes the lead in integration process. Our modular process is adapted to guiding post merger integration decisions and actions the specific requirements of each merger serving as a through its proven successful integration management guide and yardstick to organizations without their own process. Frequent acquirers have such frameworks and proven integration procedures. This process is built on procedures to integrate an acquisition. However, many our experience with Total Quality, Six Sigma, Cycle organizations do not make enough acquisitions to Time Reduction (Lean), and the best practices of develop a pattern. As such, most executives do not get frequent acquirers. This experience enables our clients an opportunity to form an integration methodology for to complete their integration in ONE year with Six others to follow. Hence, when acquisitions occur, most Sigma precision. (It’s modular so that it can be most organizations treat post merger integration not as a adaptive to meet your needs and to compliment your repeatable process but as hurdles to overcome, so strengths.) everyone can get back to business as usual. Perhaps this is why surveys indicate that about 50% of acquisitions destroy value and an additional 25% do not meet pre Who We Are merger plans. How will your acquisition beat these odds? In addition to providing adaptive process, we can help your people where and when they need additional “Speed and control are critical to capabilities. You can draw from our extensive successful integration and they can only experience in corporate operations and Total Quality. Our seasoned associates with experience in a broad be achieved through a coordinated spectrum of industries and disciplines can serve as your integration process.” facilitators. Phone: 973.370.0884 Fax: 973.665.2397 www.janthonyandco.com