A major global biopharmaceutical organization realized the need to improve the value obtained from their annual strategic-planning process. As part...
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Creating Strategic Value from Merger and Integration Program
Successful Merger and Integration programs deliver value through a tailored approach that elevates organizational and operational structures, optimizes the overall organization’s governance, and boosts new ways of working together. Mergers are highly analytical and high-risk events that require continuous executive alignment, coordination on performance, constant focus on expected value benefits, and mitigating risks during the Integration.
Programs involving Mergers and Integrations regularly become complicated because of the many interdependencies for the new organization. A successful Integration will require the right resources and skills built in the organization’s core operating model. Furthermore, leaders need to be equipped to continuously maximize transformation and value – not only for the first months after the merger is announced but for years to come.
In this high-stakes environment, program leaders must have the ability to make decisions that meet the high acquisition expectations, help the organization gain a strategic advantage, and expand opportunities to transform and grow.
Most executives and their teams do not have sufficient experience or available time resources to coordinate large and complex mergers. So it is essential to enhance their capabilities to realize the significant value drivers while executing an already ambitious integration plan successfully. A well-developed Merger and Integration approach can speed up any program and enable careful implementation progress of all aspects of the defined strategy under the expected goals.
mergers and integrations
If your organization is preparing to integrate newly acquired companies, it will be vital to have a working and proven playbook that optimizes the execution and improves the integration activities. A well-developed playbook is one of the most effective tools that an organization can establish in advance of a merger to relieve some of the high-pressure integration moments and keep the integration team concentrating on the important activities while following a structured and tested approach. The playbook aims to help organizations quickly adapt standardized processes and tools and leverage past Integration learnings. At Aurynion, we help organizations build their individualized Integration Playbook to establish the key standards for execution, consistency of approach, performance, and accountability.
In a post-merger execution, the first 100 days of operation significantly impact the overall success of a merger and achieve the anticipated value increase. The first goal is to ensure business continuation for either party, gain quick-wins and momentum, and decide on the first steps towards a new operating model while providing straightforward guidance on mitigating and avoiding integration risks. Implementing the core components of the 100-day-plan will require the Integration team to breakdown a high-level plan and strategy established during the acquisition into detailed action plans for each business function, defining key activities and deliverables that will meet the strategic and operational milestones. Our expertise helps organizations increase the probability of success for the initial days of an Integration.
Most people would easily point out that an unrealistic vision, too ambitious synergies, or a premium price are the main reason for the failure to deliver value in a merger situation. While these factors certainly play an important role in the success or failure, even the best merger vision will be heavily harmed by poor execution of a post-merger integration.
When an Integration is well organized and executed efficiently, it can directly deliver higher value to the organization. Target milestones are achieved, and key processes are successfully executed under the operating model. A well-developed framework combined with a well-managed key milestones plan will leverage existing structures with best practices from both organizations. In the end, that is what you paid for when buying a company or business unit.
We support organizations to enable the expected value and bring an extra bandwidth during a Merger and Integration program to leverage synergies, support the integration plan and focus on core processes and key success factors that establish the foundation for the future organization.
The Importance of
Merger Integration Management
An upcoming Integration project suddenly becomes the key initiative of an organization among all existing projects and initiatives and requires intensive change and operational management. The objective is to enable both organizations with real transformative possibilities while delivering on the current business opportunities, aligning the new strategy, setting up the new organization in place, and promptly gaining immediate synergies. As a result of this, some common standards and starting points are vital:
- Building the blocks for change management as a key element of the Integration
- Understanding the value of human capital for the Integrating value
- Involving the executive team in the foundation of the change management plan (“One Voice” is important)
- Driving coordinated communication of the integration progress and cascading throughout the organization periodically
- Monitoring the communication process and assessing risks
Opportunities in the Integration Process present themselves often suddenly, and being prepared for them is critical. Having a set of standard operating procedures and actions will enable teams to address any eventuality and react quickly.
Expertise in
Mergers and Integrations
Mergers and Integrations
Creating strategic value from a Merger and Integration program is not an easy task and requires adequate resources and approaches. Our expertise helps organizations increase the probability of success from the initial days around completing an acquisition and the ongoing integration efforts.
Implementing a program management process to monitor progress against key milestones, raise and resolve issues, quickly and efficiently address risks, and accelerate cross-functional decisions in regular steering reviews is crucial for the success of the integration process. Our methodology equips organizations to manage the integration process’s direction and continuity to maximize transaction value and optimize work efforts.
We support organizations to enable the expected value and bring an extra bandwidth during a Merger and Integration program to leverage synergies, support the integration plan and focus on core processes and key success factors that establish the foundation for the future organization.
To discover more about our Merger and Integration support,
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Our Case Studies
Our Merger and Integration services offer essential
support to maximize integration benefits.
support to maximize integration benefits.
