We actively guide you through complex integrations
Each transaction is unique, as is each decision to acquire a business. As anyone who’s been through an integration knows, one size does not fit all.
Whether you’re acquiring new capabilities or technologies, bringing two operations together to create a more valuable business, or consolidating market assets, we use our proprietary Integration360°© methodology to actively guide you and your teams. We will help you to create a customized plan that will deliver a consolidated entity that is greater than the sum of its parts, as quickly as possible, and with no organizational stress or loss of productivity in the interim.
An Operational Perspective During Negotiations
An M&A deal is exciting for everyone involved. Initial discussions usually revolve around legal and financial deal-sheets and, as negotiations draw to a close, everyone is laser-focused on crossing the finish line. However, no one has an incentive to bring up operational sticking points.
Skipping over some of those difficult operational conversations before close is often why integrations are stressful for the everyone involved, and a significant factor in why more than 70% of mergers fail.
To ensure that you avoid this, we start supporting you during the final stages of deal negotiation. We help you identify operational considerations that may have a significant impact on your ability to integrate, or to realize the upside in your business case.
Additionally, we help you deliver the right messages, in the right way—to both organizations—from the moment you announce, and throughout the lifetime of the integration.
In short, we help you build a strong foundation for a successful integration.
A Bespoke Integration Approach Post-Closing
Beyond the spreadsheets and term sheets, beyond trendlines and product lines, each company has its own distinct operational ecosystem. Processes and workflows, policies and procedures, talent and culture all blend to form the DNA that makes your organization distinct. So, it’s no surprise that a lot can happen when bringing two organizations together.
Through the powerful combination of our Integration360°© methodology, our Transformation-from-Within© approach, and a full-time embedded senior partner, we quarterback your integration journey from A to Z. That includes everything from helping the leadership team determine which aspects of the business to integrate, which to protect, and which to redesign altogether, to helping each function draft and execute its integration plan—from growth strategies to systems integration, office relocation, or deciphering what happens to everyone’s 401k.
The result is a consolidated, streamlined and efficient company that embodies the best of both worlds. All on time, on budget, with no stress and minimal exodus of desired talent.
In short, while traditional consulting firms might deliver a great plan, we deliver a great company.
Integration360° Methodology
Our Integration360°© methodology is a comprehensive guide to successful mergers
Often times the decision to merge two businesses or acquire a company is viewed exclusively through a financial lens without much attention being paid to the operational aspects of making the investment bear fruit. Initial strategies often look good on paper, but successfully completing large integrations and managing disruptive changes within complex ecosystems requires a hands-on approach.
We use our Integration360°© methodology to address every facet of the integration process from pre-transaction planning to change management, and augment this with our Transformation-from-Within© approach which ensures that we create the organizational readiness necessary to drive change with speed, agility and proficiency.
We actively work with key stakeholders to drive alignment upfront on operational parameters that are often sidestepped during the due diligence and negotiation stages, but that strongly influence how the transaction is operationalized - What should be integrated and what should be left alone? How do you do it, and when? Most importantly, what is the “secret sauce” of each company and how do you make sure you don’t lose that while integrating.
Open, transparent communication can make the difference between a workforce that is excited about the future and one that is distracted and looking for the exits. We work closely with you to develop and deliver the appropriate messages that set the right expectations within the workforce - from the initial deal announcement to positioning every change along the journey.
One of the most frequently overlooked – yet most critical aspects dictating the success or failure of an M&A deal – is the impact to corporate culture. We use a combination of cultural diagnostic tools and cutting-edge “behavioral change” experts to influence both individual and team behavior on the job, thus making culture a driver of motivation and effectiveness, and not just a “feel-good” gimmick.
To drive the core of integration work, we create a workstreams for each function, and identify individuals within both companies who can serve as thought leaders and champions of collaboration. We guide these team to use best practices to analyze data, and make the right strategic decisions for the future of the business, then we support them through executing their plan on time and on budget.
There’s no better opportunity than an integration to take a diagnostic look at your business and optimize its operations. Integrations, by default, require the dissection of every aspect of the business to define how the new company fits in, which is enhanced when the team is already thinking analytically about how the enterprise operates.
Transitioning from “integration mode” to “business-as-usual mode” is a challenge for any traditional integration. Our Transformation-from-Within© approach is designed to mitigate this. Throughout the integration, we coach your team on how to approach operational challenges, and deal with conflict. As a result, when previously undiscovered issues arise, the team is well prepared to address them collaboratively.
Blueprinting
Any M&A deal begins with a vision for a brighter future. But, typically, deal work is focused on legal and financial aspects and, unfortunately, omits building clear consensus on the tactical operational changes needed to make this vision a reality. This is why most integrations start with discourse, and evolve into stress, talent exodus and reduced productivity.
Our blueprinting phase corrects for this. We actively work with key stakeholders to drive alignment on key operational parameters (brand changes, staff redeployment, office moves, etc.) that are often sidestepped during the due diligence and negotiation stages, but will strongly influence how the transaction is operationalized.
During this phase, we also work with the leadership team to determine which aspects of the business to integrate, which to keep separate and nurture, and which require various degrees of redesign.
In short, we help you pre-emptively avoid challenges that aren’t addressed during typical negotiations.
Communication
Open, transparent communication can make the difference between a workforce that’s excited about the future and one that’s distracted and looking for the exits.
That’s why we work closely with you to develop and deliver the appropriate messages that set the right expectations within the workforce—from the initial deal announcement to positioning every change along the journey.
This exercise of optimizing internal communication is vital to minimizing “water cooler” gossip, and eliminating the exodus of desirable top talent, who typically don’t feel they should have to put up with instability when they have better options.
As a result, we create an environment where employees at all levels not only feel optimistic about the future created by the merger, but are also motivated to participate in the required change effort.
In short, by ensuring you have a stable, motivated workforce, we help you avoid the loss of productivity that is typically experienced during integrations.
CULTURE
One of the most frequently overlooked aspects of an integration is the impact of corporate culture—despite extensive evidence that cultural challenges are a key reason why so many M&As fail. Even more challenging is the misperception that cultural issues can be fixed by team trust exercises and off-site socialization.
Alas, impacting corporate culture in an authentic manner that can pragmatically raise productivity and efficiency is far more complex. This is why we dedicate an entire workstream to addressing corporate culture head-on.
We use a combination of cultural diagnostic tools and cutting-edge “behaviour change” experts to influence both individual and team behaviour on the job, thus making culture a driver of motivation and effectiveness, and not just a “feel-good” gimmick.
Furthermore, because we operate from within your organization, we have a unique opportunity to observe and influence the behavioural dynamics resident within both teams.
In short, we provide an “early warning system” that identifies and proactively addresses concerns before they escalate into roadblocks.
Workstreaming
Integration is usually a long journey, with many challenges and obstacles to overcome. To stay on track and keep the integration moving at a brisk pace, we establish a set of workstreams to govern and manage the process.
We create a workstream for each function or activity of strategic importance, and identify individuals within both merging companies who can serve as thought leaders and champions of collaboration and change.
We guide the selected team on how to use best practices to analyse data, and make the right strategic decisions for the future of the business. We then support them through the plan’s execution—on time and on budget.
During this phase, we also identify C-suite sponsors for each workstream who can eliminate stubborn obstacles and ensure that strategic decisions can be made in a timely manner.
As a result, each corner of the business is addressed, and the future of the consolidated company is authored and owned by its full operating team.
Optimization
There’s no better opportunity than an integration to take a diagnostic look at your business and optimize its operations.
Integrations, by default, require the dissection of every aspect of the business to define how the new company fits in, which is enhanced when the team is already thinking analytically about how the enterprise operates.
During this phase, we guide your team through a deep dive into all key aspects of the operation, identifying what’s working and where there may be room for improvement. We then help protect the strengths and address any weak spots – a task made easier when each enterprise brings a different set of strengths to the table.
This is a particularly important step when one of the companies was acquired for a “secret sauce” worth protecting – whether that’s an innovative team, an exceptional approach to creation, or a magic touch that draws in a following of loyal customers.
As a result, you not only protect the value of the asset you purchased, but you also have a new consolidated company that is greater than the sum of its parts, and a cohesive team with a sense of shared ownership.
Stabilization
A final challenge for merging companies that use a traditional approach is how to transition from “integration mode” to “business-as-usual mode”. In other words, from a stage with full-time traditional consultants running the show and senior executives making all the decisions, to a time when they have to figure it out for themselves.
Our Transformation-from-Within© approach mitigates for this.
Throughout the integration journey, we coach your team on new ways to approach operational challenges and deal with conflict. As a result, when market conditions change, or previously undiscovered issues arise, the team is well prepared, having had a lot of experience making adjustments collaboratively, without requiring consultants to do it for them, or needing executives to intervene.
By the end of our engagement, you’ll have a fully integrated company, and a highly functioning team that’s capable of addressing the challenges that come their way.