Mergers can make sense to be on the winning side of industry rationalization or as an effective way for two organizations to gain economies of scale and achieve a boost in performance. A merger can achieve these outcomes with minimal need for bank debt or investor funds.

However mergers have their own particular challenges and need adroit management to achieve a successful outcome.

We have initiated and project managed a number of mergers.

Typical Issues

  • Keeping good communication to address many of the key issues below
  • Gaining agreement on the key management positions
  • Gaining agreement on board positions
  • Gaining agreement on the process used to determine relative enterprise values and the result
  • Agreeing the structure
  • Agreeing the name of the entity
  • Agreeing the key location and having all comfortable that an objective process will be used to determine this
  • Being “real” about he benefits and doing the merger for the right reasons
  • Managing egos and maintaining trust
  • Understanding funding requirements, current and future
  • Merger plan – roles and responsibilities

Our process includes the following stages

    • Planning
      • Strategic Planning
      • Market Study
      • Candidate criteria
      • Preliminary pricing matrix
      • Options and risks
    • Self / Inter-organizational assessment
      • Identification/ Qualification
      • Solicitation/ Positional agreement
      • Self/ Inter assessment
      • Synergy identification
    • Execution
      • Financial modelling
      • Form of relationship/ Transaction structuring
      • Due diligence, including synergies
      • Negotiation and contracts
      • Settlement
    • Post-acquisition
      • Tactical objectives/ integration
      • Best practices (e.g. Peer groups)
      • Synergies First 100 days
      • Synergies  – 100 days+
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