Professional Documents
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Making Mergers Work
Making Mergers Work
work
The following is a summary of information collected through our research and consulting
experience working with a variety of organizations during a merger and acquisition period. Our
perspective is drawn from both sides of the deal with a variety of clients representing a broad
cross-section of industries, including: Compaq (technology and manufacturing), Black
Entertainment Television (BET), AECOM (professional services), GE Capital (finance.) We also
draw on our direct experience with successful merger of our distance learning business,
Generation21 and the failed merger of our consulting business with Linkage.
3. Successful Mergers
Our experience and research done over the past decade points to six key reasons for
successful mergers:
1. Leadership – Decisive and visible
2. Communication – Well planned and coordinated throughout the deal process
3. Attention to Employee Issues – Early management of “What will happen to me?”
employee questions and concerns
Work Systems Affiliates International . 7 Mid State Drive . Suite 202 . Auburn, MA 01501
Phone: 781- 343-4000 . Fax: 781-343-4044 . Email: consulting@wsa-intl.com . Web: www.wsa-intl.com
4. Expedient Integration – Speedy decisions about organizational structure, such as:
♦ Leadership appointments
♦ Old and new customer requirements
♦ Merged product/services mapping
♦ Retention and attraction of key talent
♦ Fast implementation of infrastructure systems and procedures.
5. Culture – Identification of cultural compatibility as well as conflicts and potential
unintended consequences, with a plan developed to bridge the identified gaps.
6. Action Plan – Alignment of the path forward by senior leadership.
Prior to and during a merger or acquisition is typically when value is identified and agreed on,
but “post-deal” is where most of the value is actually created.
Integration – We view the process of integration as a framework through which the activities
that establish a successful merger are systematically identified and implemented. This process is
about exciting customers and employees to work together by having a clear vision and a focus on
tangible results. Integration is intended to create a detailed workplan of business practices,
aligned or new processes, behaviors towards customers and other employees, that effectively
build the foundation to run the new, modified business.
1. Goals of Integration
♦ Achieve strategic synergies in finance, markets and product/service
♦ Modify the business model to reveal the strategy in implementation
♦ Retain and re-motivate the people
♦ Innovate and grow quickly
♦ Become a new team.
Work Systems Affiliates International . 7 Mid State Drive . Suite 202 . Auburn, MA 01501
Phone: 781- 343-4000 . Fax: 781-343-4044 . Email: consulting@wsa-intl.com . Web: www.wsa-intl.com
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III. M&A Integration Support: Work Systems Affiliates’ Approach
Work Systems Affiliates International . 7 Mid State Drive . Suite 202 . Auburn, MA 01501
Phone: 781- 343-4000 . Fax: 781-343-4044 . Email: consulting@wsa-intl.com . Web: www.wsa-intl.com
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♦ Initiate a “management and technical exchange” with the acquiring company, in
selected areas based on specific needs
♦ Interface and coordinate activities with appropriate personnel, task teams, functional
groups, etc.
We recommend the Integration Team and/or key members of both organizations participate
in a 2-day Systems Thinking program to facilitate the development of a systems approach
to the M&A process.
Work Systems Affiliates International . 7 Mid State Drive . Suite 202 . Auburn, MA 01501
Phone: 781- 343-4000 . Fax: 781-343-4044 . Email: consulting@wsa-intl.com . Web: www.wsa-intl.com
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