© 2019 RSM US LLP. All rights reserved.
Merger Integration and Optimization
Making sure your deal delivers on its potential
When the transaction finally closes, many people believe that the hard work is done. But in reality, it is just the beginning, and a poorly planned or executed integration will significantly diminish the value that the deal intended to deliver.
At RSM, our team of mergers and acquisitions professionals have significant experience in guiding business leaders throughout the life cycle of a transaction. In particular, when it comes to post-close activities, we ensure there is a keen focus on methodically integrating the organizations with a close eye on deal value maximization for both transition services agreement (TSA) and synergy management. Our team has delivered successful integration services to hundreds of large and middle market companies.
Our collective knowledge and experience is captured in our proven, time-tested framework that helps us anticipate issues and provide effective solutions across the life cycle of a transaction. This includes:
- Early-stage synergy evaluation: In this early stage, our team of professionals will assist you in reviewing the deal thesis in order to provide early council on how to align your acquisition to achieve maximum value and results.
- Pre-acquisition planning: This critical stage involves taking a close, real-world look at the cultural, organizational, financial, operational and technical aspects of each organization respectively. This early review helps us determine the size of the gap as well as the degree of difficulty in closing that gap. These insights allow our team to scope and plan the integration with the necessary levels of precision. The intention is to establish an integration management office (IMO) and team structure in order to deliver maximum results and value with minimal disruption to the business.
- Deal thesis to synergy planning: The deal thesis outlines the objectives of the transaction. In order to meet the synergy targets and capture the intended value, it is critical to focus on those objectives, take planned action and work the roadblocks. RSM’s M&A professionals focus on planning these critical value capture items and offset the risks with advice and risk-based planning to maximize timing and reduce risk impact.
- TSA exit planning: Starting with the end in view is important to minimize ongoing cost and transition to normal operations. Establishing the timeline, identifying long lead items, and focusing on unwinding the entangled elements will allow management to gain overall control as quickly as possible. RSM’s role is to transition all of the business functions, minimize elevated costs of operations and efficiently transfer management control of all of the business functions.
- Post-acquisition and optimization services: After the deal closes, there are a number of critical phases the acquiring entity must successfully navigate if it is going to reach its full potential and meet the financial expectations of the transaction. Our integration methodology contains the necessary steps, tools and accelerators to help business leaders organize and develop an integration road map that supports their day one and business continuity needs. In addition, our methodology outlines the standard approach to structure the interim and longer-term initiatives necessary to support the overall transaction objectives, while realizing and tracking expected synergies, TSA costs and deal value throughout the life cycle.
All too often, deals that make great business and financial sense on paper deliver lackluster results, largely because they were poorly planned and executed. This failure to plan diminishes the opportunity for optimized financial, human capital, operational and technology implementation. By involving RSM in the early stages of your next merger or acquisition, you’ll get straight talk, objective counsel and the confidence of working with professionals with a proven track record of delivering successful integrations with maximum results.
Most Popular Insights
Learn how a manufacturer improved its product line profitability while streamlining the back office.
In this video series, private equity experts share insights and experience on how to plan for a successful post-merger integration.
Increasing the success of an integration requires buyers to start the planning process before the deal is completed.
This briefing recaps the three-part video series, Inside the buy-and-build strategy.
How value is created in a private equity strategy where a platform company is used to make several add-on acquisitions.