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Peter Baynham's overview presentation where he addresses what happens in a Merger and Acquisition process. Slides used at an event hosted by Ellwood Atfield. 12-06-2013
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M&A Integration
Why does it so often fail?
M&A IntegrationAgenda
• What happens in an M&A Process?• Why do they succeed? Or, more usually fail?• What should happen?• Examples—Good and Bad• Top Tips to make it work
The M&A Process
Essentially six major steps1. Formulate2. Locate3. Investigate
4. Negotiate5. Integrate6. Long Term Development
(Merger repair?)
Why do so many M&As fail?
Paper by Havard Business School– Two fundamental reasons to acquire– Boost current performance– Redirect the company
Why do so many M&As fail?
“Success or failure of an acquisition lies in the nuts and bolts of integration”
What should happen: 1?
• Look at the last deal done and learn from what went well and what was a problem—ask the people on the shop floor
• Plan integration early and ensure deal team have skin in the game
• Take communication very seriously and not just as an add on
• Analyse the cultural fit
What should happen: 2?
• Have a board that isn’t afraid to pull the deal
• Use the people that “know” for the integration---bring both companies together
• Be clear about outcomes and a timetable
• Manage the integration like any other project
Examples
• Good
– Standard Chartered Bank– Drinks company HQ in UK
• Bad
– HP/Autonomy– Daimler/Chrysler
Five key tips for success
1. Determine the required or desirable level of integration
2. Select a highly respected and capable integration leader
3. Select dedicated, knowledgeable, capable people for integration team
4. Speed up decisions rather than focus on precision
5. Provide continuous communication and feedback
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