The drivers for M&A integration and divestiture/ carve-out separation performance improvement will vary, but typically involves a need for:
Higher level of confidence in synergy value targets, costs and timescales;
Lower transaction consumption of business bandwidth;
Reduce dependencies on transaction partners;
Faster and smoother transitions;
Greater transparency of transaction performance;
Leveraging M&A for growth and as a source of competitive advantage;
Increased ability to preserve and create sustained value;
Others include a substantial reduction in corporate risk, a greater awareness of the internal capacity and ability to rapidly adapt and execute corporate initiatives.
Our approach to performance improvement is highly practical, accelerated and hugely impactful. It commences with the surfacing of specific and critical vulnerabilities, deficiencies and problems involving people, process and tools. Often these evade the ‘internal radar’, whilst others may be far more visible, but highly challenging to resolve internally.
The following vulnerabilities, deficiencies and problems are far too common examples:
Fundamental gaps in the approach to integration or separation;
Structural integrity flaws in planning, including an underassessment of integration or separation complexities;
Insufficient support and quality of service from existing transaction partners;
Excessive integration or separation costs;
Inability to structure and align cross-functionally teams;
Internal competency and/or skill gaps;
Quality issues with templates and completed deliverables;
Fuzzy role definitions, project structure;
Low visibility of resource overloading and actual business capacity;
Late surfacing of local compliance, regulatory and legal requirements;
‘Thrashing’ caused by an inability to control and appropriately encapsulate complexity;
We will then propose a roadmap for improvement, including ‘quick wins’ and immediate priorities. Its speed of implementation, along with the business case and return on investment will be agreed before any implementation begins.