Post-Merger Intergation

• At the stage before concluding a transaction to acquire a company - assisting the buyer in assessing the risks and prospects of the transaction, timely adjustment of the existing integration plan and, if necessary, the terms/parameters of the transaction, assessing the resource required for integration;
• Unification, adjustment of business processes to prevent a failure in the operating indicators of both companies during their merger;
• Ensuring the achievement of qualitative and quantitative targets that justify the capital invested in the transaction.
• Maintaining the long-term synergy effect inherent in the transaction

The reason for unsuccessful mergers is that management fails to realize the synergy effect, or even maintain the value of the companies at the basic level. Common reasons for this:

• The terms of merging the operating activities of the companies turn out to be longer than planned. Numerous discrepancies between the expected and actual picture that are revealed do not allow for the effective implementation of the initially prepared integration plan;
• As a result, the cost of the merger is higher than planned;
• The operating indicators of both companies fall due to the additional burden on personnel and the loss of independence by the companies. The actual financial result does not reflect the planned one;

Tasks

• At the stage before concluding a deal to acquire a company - to help the buyer assess all the risks and prospects of the deal and promptly adjust their integration plan, and, possibly, the terms/parameters of the deal itself, to assess their own resources required for integration;
• unify, adjust business processes and prevent a failure in the operational indicators of both companies during their merger;
• ensure the achievement of qualitative and quantitative targets that justify the capital invested in the deal.
• maintain the long-term synergy effect included in the deal;

Effect for the customer

• Coordinated actions of the management and departments of the merging companies to achieve the KPIs of the integration plan;
• Timely implementation of benefits from the deal;
• Eetention of key talents and qualifications in the merged company.
• Enhanced control over integration risks;
• Minimization of disruption to business operations and loss of critical operational elements;
• Rapid stabilization and integration;
• Coordinated communications with all groups involved in the integration.

Approximate scope of work

• Conducting management diagnostics of the companies to be merged (see scope of work above);
• Analysis of the existing integration plan for its compliance with the goals and objectives of the merger, and the results of the diagnostics;
• Updating, or developing, the target and transition operating models of both companies;
• Conducting a series of interviews with key participants in the transaction to identify the vision and requirements for integration;
• Preparing proposals for adjusting the plan, or preparing a new consolidated plan that is convenient for monitoring and use;
• Creating working groups. Conducting an introductory meeting for key participants in the integration, indicating deadlines and those responsible;
• Organizing the work of functional groups, harmonizing the work of the companies' employees involved in the project with their main work;
• Regular monitoring of program implementation and control over decisions made;
• Conducting weekly status meetings with working groups;
• Tracking risks, emerging problems and delays in decision-making;
• Timely detection of the most critical delays and problems, and submitting them for consideration by the Customer;
• Control over budget expenditure on integration
• Maintenance of project documentation (plans, budgets, registers, etc.), providing management with up-to-date information on the progress of the project;
• Monitoring the status of task completion and achievement of key plan steps;
• Collection, analysis and escalation of requests for plan changes from working groups;
• Accounting for the effect of changes made on the plans of other working groups, tracking the critical path of integration;
• Updating the integration plan (at all levels);
• Generating periodic reports on achieving target indicators;
• Analysis of the impact of deviations from the plan
• Supporting working groups in identifying additional effects;
• Updating the synergetic model.

Term and cost of work
The nature of this service implies not a one-time, but an ongoing format of its implementation, with an estimated time frame from 6 to 12 months, and a cost depending on the complexity of the project.

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