When to conduct M&A Business Change
- Pre - merger when the deal is being arranged - this is the time to assess organisation and cultural compatibilities and plan the merger. It will demonstrate to staff and external stakeholders that you are assiduous in making this work for all aspects of the business. Only in this way will you realise synergies.
- During transition - time for core implementation and programme management to deliver balanced change - commercial, organisation / people, systems and processes
- Post merger - consolidating the organisation, realising performance, potential and delivering synergies.
Mergers and Acquisitions
Opportunity
The rapid rise in mergers and acquisitions in the buoyant economy is marred by an increasing number of failures. Synergies aren't realised and value is eventually destroyed, rather than created.
A finance and legal framework are not sufficient to create a lasting deal. The merging companies need to be merged organisationally and culturally.
Benefits
- Combination of business and organisation change consolidates the merger, ensuring long term success and realisation of synergies
- Change interventions are clearly phased. Client is able to see discrete deliverables, progress and value
- Change process and good communications ensures clarity, staff engagement and motivation
- Opportunity to rebrand reaffirms core values, establishing clear identity for the future
Labovitch Approach
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The merger of organisations is a business change initiative. We use the High Impact Change model as our strategic change methodology and associated toolkit to create a well integrated joined organisation.
The output is a merger built on firm foundations.
| M&A Stage | Approach and Tools |
| Pre - deal understanding and Management Assessment | |
| Operational due diligence | Review of organisation (in the context of people, processes and systems) and management structure to deliver business plan. Brand, culture, assessing staff resistance, sponsorship, reward structure and training. |
| Synergy analysis and review | Review and recommendations for organisation and operations to deliver synergies. |
| Taking control | |
| Transition planning | Business and change plan, 100 and 50 day plans, resourcing, engaging staff to build platform for change (particularly programme, portfolio management, benefits and risks). |
| Accelerating change | |
| Synergy delivery | Engaging staff, implementing and achieving synergies - managing resistance, establishing new organisation, integration of systems and processes, communications, competence development, training. |
| Profit Improvement | |
| Operational review | Benefits realisation, quantifying synergies - e.g. profit, cost reduction, market share, brand, culture, morale. |
Programme Plan for M&A Change
- Blueprint for Success
- Culture, Organisation Design, Brand
- HR
- Communications
- Risk Management
- Performance management for business
- Business systems
- Business processes
- Facilities
- Benefits realisation
