Ec
on
om
ic
ch
an
ge
s
th
ro
ws
po
tl
ig
ht
on
po
st
-d
ea
li
nt
eg
ra
ti
on
While
good
deals
ar
e
still
being
complet
ed
,
acquir
ers
must
fo
cus
on
int
eg
ration
if
the
ya
re
to
truly
bene64257t
fr
om
the
transac
tion.
Po
st
-d
eal
contr
ol
is
fundamental
in
mak
ing
sur
et
hat
deal
value
is
not
lost,
sa
ys
An
dy
Arg
yle,h
ead
of
KP
MG
8217s
Tr
ansac
tion
Se
rv
ices
te
am
in
the
Mi
dlands
Despite
the
changes
in
the
global
financial
markets
impacting
upon
the
number
of
transactions
being
completed,
there
are
still
deals
being
done.
And
for
those
deals,
making
sure
they
provide
the
value
that
is
in
line
with
the
purchase
price
will
be
escalating
up
the
agenda.
Wi
nning
the
deal
is
only
half
the
job.
Delivering
the
value
promises
made
during
the
deal
process
is
critical
.
There
is
ad
elicate
balance
between
try-
ing
to
realise
the
value
in
the
quickest
pos-
sible
times
cales
and
minimising
disruption
to
the
two
underlying
business
es.
The
importance
of
pre-deal
planni
ng
is
frequently
underestimated.
As
ar
esult,
business
es
looking
at
trans-
actions,
especially
in
today8217
se
nvironment,
must
start
planning
early
and
if
possible,
get
ad
edicated
team
on
the
case
to
create
a
smooth
integration
process.
It8217
sc
ritical
the
leadership
team
responsi-
ble
for
managing
the
new
business
is
identi
-
fied
and
operational
soon
after
Day
One,
as
they
must
be
(and
be
seen
to
be)
actively
involved
in
the
integration.
Assigning
syner
gy
tar
gets
to
each
direc-
tor
is
ag
ood
way
of
securing
the
required
buy-in,
although
linking
syner
gy
tar
gets
to
remuneration/
bonus
payments
is
ab
et-
ter
way
to
obtain
their
complete
focus
and
commitment.
Post-deal
control
is
fundamental
in
en-
suring
deal
value
is
not
lost.
Business
integrati
on
creates
ac
omplex
business
environment
where
there
is
an
eed
to
manag
eg
roups
of
inter
-related
projects
as
part
of
ab
roader
programme
of
change.
However
,i
ssues
surroundi
ng
the
cult
ural
dif
ferenc
es
betwee
nt
wo
or
ganisa
tions
are
not
usuall
yd
ealt
with
ef
fectively
8211m
uch
to
the
regret
of
the
acquirer
.
How
quickly
ab
usiness
integrates
will
also
be
crucial
inl
imiting
value
leakage.
KPMG
research
has
shown
that
on
average,
it
took
nine
months
for
companies
tof
eel
they
had
control
of
the
significant
issues
facing
the
business
post-deal.
According
to
research
carried
out
by
KPMG
,t
he
transactions
which
are
more
successful
in
quickly
gaining
control
and
creating
value
are
where:
n
There
is
ar
obust
and
well-managed
governance
process
n
Priorities
are
allocate
dt
ot
he
activiti
es
to
be
carried
out
n
Clear
decisions
are
taken
about
how
and
by
whom
the
activiti
es
should
be
handled.
While
traditional
project
management
techniques
will
help
to
control
time,
cost
and
quality
integration
programmesd
e-
mand
ab
roader
,c
o-ordinated
benefit-driven
approach
reflecting
their
far
higher
strategic
and
financial
risk.
Integrating
successfully
at
this
level
is
fundamental
in
gaining
the
support
of
em-
ployees.
Experience
shows
us
that
in
today8217
se
nvi-
ronment,
the
honeymoon
period
for
compa-
nies
post
mer
ger
is
100
days,
with
employ-
ees
expecting
answers
as
soon
as
the
deal
is
closed.
If
employees
are
not
satisfied,
they
will
vote
with
their
feet.
Confusion,
uncertainty
and
poor
morale
really
do
matter
8212a
nd
it
can
have
as
ig-
nificant
impact
upon
the
post-deal
value
realisation.
In
today8217
sfi
nancial
and
economic
cli-
mate,
what
an
acquirer
does
post
deal
will
define
success
or
failure.
The
deal
does
not
in
itself
create
value,
rather
it
gives
management
the
opportunity
to
deliver
the
upside
post
deal.Te
nt
ips
to
mitigate
buy
ers8217
morning-after
feeling
1
Pe
rf
or
mr
obust
analy
sis
to
iden
tify
syner
gi
es
and
per
fo
rm
anc
et
ar
gets
,a
nd
plan
to
ex
ce
ed
the
or
ig
inal
syner
gy
and
per
fo
rm
anc
ei
mpr
ov
emen
tt
ar
gets
2
Iden
tify
and
in
ve
stiga
te
post
-d
eal
issues
pr
ior
to
co
mpletion
8211s
ome
of
these
issues
co
uld
be
so
sig
nifican
t
tha
tt
hey
co
uld
br
eak
the
deal
3
Us
et
he
re
gula
to
ry
per
iod
8211s
tar
tp
ost
-d
eal
managemen
tw
or
kp
ri
or
to
co
mpletion
4
Se
tu
pad
edica
te
dt
eam
to
manage
the
post
-d
eal
wo
rk
5
Obtain
co
nt
ro
lo
ve
rt
he
financ
ea
nd
re
por
ting
sy
st
ems
as
ear
ly
as
possible
af
te
rc
lose
6
Iden
tify
the
cultur
ed
iff
er
enc
es
ear
ly
and
plan
ho
wt
oo
ve
rc
ome
them
7
Ant
icipa
te
and
plan
fo
rm
anagemen
ta
nd
leadership
issues
ear
ly
,t
hen
monit
or
them
closely
af
te
rc
ompletion
8
Balanc
ef
ocus
on
deliv
er
ing
incr
emen
tal
va
lue
with
the
need
to
keep
an
ey
eo
nt
he
da
y-
to
-d
ay
business
per
fo
rm
anc
e
9
Tr
ack
the
va
lue
deliv
er
ed
fr
om
the
deal
and
honestly
assess
the
suc
ce
ss
or
other
wise
of
the
post
-d
eal
wo
rk
10
De
ve
lop
ap
ost
-Da
yO
ne
co
mmunica
tion
plan
to
ensur
es
har
eholders
,e
mplo
ye
es
,c
ust
omers
and
suppliers
ar
ek
ept
appr
opr
ia
te
ly
inf
or
med
Exper
ience
sho
ws
us
that
in
to
da
y8217
s
en
vir
onment,
the
hone
ymoon
per
iod
fo
rc
ompanies
post
mer
ger
is
100
da
ys
,
with
emplo
ye
es
expec
ting
answ
ers
as
soon
as
the
deal
is
closed
.
If
emplo
ye
es
ar
en
ot
satis64257ed
,t
he
yw
ill
vo
te
with
their
fe
et82208
WEST
MIDL
ANDS
CO
MP
AN
YG
UIDE
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