Perspective
Key Success Factors through Post-M&A Integrations
Ian Madell, Jordan Shapiro, Michael Carter & Sylvia Palka Melo | April 20, 2022
Meeting the Value Creation Challenge in Post-M&A Integrations
Whenever two or more companies and their brands come
together, a minefield of challenges threaten the success of their
integration. Post-M&A integrations are complex transformation
processes. They involve numerous stakeholders and chase
multiple outcomes. They are demanding on leadership,
unsettling to employees, and confusing to customers and
shareholders. Although the ambition of mergers and
acquisitions is always to create value, the majority of
integrations fail to deliver on the value they promise.
At Level5 Strategy, we have seen these challenges time and
time again when helping clients overcome the obstacles of
successful post-M&A integration. Our secret sauce? We guide
clients to develop their transformation plans through a
customer-centric lens, and with a view that sustainable value
creation results from ‘promises, consistently kept’. In our view,
this idea is the foundation of building valuable brands and
delivering profitable growth.
The notion of Driving Value Creation through Promises Consistently Kept is also critical to delivering
enduring and impactful post-M&A integrations. Every successful integration is based on a clear promise
made to several stakeholders about what the new/combined brand, product, or service experience, and
added shareholder value, will be. This promise is then fulfilled by a well-executed plan to empower change
through the impacted organizations, processes, and experiences.
But what separates the companies who meet or exceed the ambitions of an integration, from those who fail to do so?
In our experience, there are several key success factors that underpin the most successful integrations.
We share them here to offer insight, perspective, and learning to consider as you explore your next
integration or reflect on your last.
Driving Value Creation…
- Define and align around your ‘endgame’ – the expected value you are creating and what you will look like when it’s achieved
- Ensure People & Culture are core to your diligence – don’t forget these, alongside more traditional topics
- Proactively communicate the expected benefits of the integration to your customers, employees, supply partners and shareholders
- Minimize disruption with a distinct integration plan, while adapting your current operating plan(s) to maintain focus on the day-to-day
…through Promises, …
- Define and align around
your ‘endgame’ – the
expected value you are
creating and what you will
look like when it’s achieved - Ensure People & Culture
are core to your diligence –
don’t forget these,
alongside more traditional
topics - Proactively communicate
the expected benefits of
the integration to your
customers, employees,
supply partners and
shareholders - Minimize disruption with a
distinct integration plan,
while adapting your current
operating plan(s) to
maintain focus on the day-
to-day
…Consistently Kept
- Define and align around your ‘endgame’ – the expected value you are creating and what you will look like when it’s achieved
- Ensure People & Culture are core to your diligence – don’t forget these, alongside more traditional topics
- Proactively communicate the expected benefits of the integration to your customers, employees, supply partners and shareholders
- Minimize disruption with a distinct integration plan, while adapting your current operating plan(s) to maintain focus on the day-to-day
SEND US A MESSAGE
© 2023 Level5 Strategy.
All Rights Reserved.
SIGN UP TO RECEIVE UPDATES
