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Mergers, Acquisitions and Integrations

We ran the carve out and integration for Private Equity backed Legal Services business, involving people, processes, systems and property as part of the buy and build strategy. The commercials were already signed when we were engaged for post-acquisition integration, yet we managed to bring about a re-negotiation on enhanced terms after unearthing some significant risks for customers and for the operational elements of the business. 

The Approach

Often, activity from mergers, acquisitions, carve outs and integrations is seen through a commercial and legal lens, with the operational and people change management regarded as a next step. In our experience, whilst this is possible and indeed common, it isn’t optimal or advisable.

There’s a reason so many Change initiatives over-run, over-spend and under-deliver. They’re not properly scoped and understood, then several other decisions are taken with incorrect or incomplete information. M&A projects are no different.

The purpose of M&A activity, perhaps as a single substantial project or perhaps as part of a buy and build strategy, is usually to create enhanced value. Value for customers, employees and shareholders. Working back from that aim, certain assumptions are made. There may be some economies of scale. There may be some complimentary propositions, and so on. Any assumption has some risk attached. It’s looking in detail at these and other risks, through the lens of experience, that can help inform the business case and perhaps challenge the returns or even feasibility of the transaction.

  • Started out with The Reality Check® to review needs, strategy & approach.
  • Identified a number of significant operational, customer and colleague risks.
  • Developed 2 strategies & plans for the carve out – preferred and fall back.
  • Sought, and found cause to re-negotiate deal with counter-party (well known Bank).
  • Delivered change, including all agreed Transitional Service Agreements (TSAs).

The Outcome

Renegotiation saved 40% on the consideration, whilst also requiring the counterparty to provide systems and warranty support to soften the cutover and reduce risks to customers and transitioning colleagues.

Further Mergers, Acquisitions and Post-Acquisition Integration experience spans a range of sectors and client sizes, from lower mid-market Private Equity to FTSE 100 and Multi-National, and includes end-to-end delivery, recovery of challenged Programmes and putting in M&A platforms.

Our approach to M&A activity is very similar to our broader ranging Private Equity Change experience. We invest time with the leadership, management and wider organisations of the businesses to agree outcomes and develop strategies and plans which protect the value of acquired assets whilst also delivering revenue, service and cost benefits. We also cover the ground that would have been covered had we been engaged to provide Change due diligence support, so that we can identify any potential risks and issues, and act on them.

It’s the way that we work that also appeals to clients. Whether we’re supporting a carve out, change due diligence or post-acquisition integration, we work collaboratively with the team and always look to transfer knowledge, skills, expertise and confidence so that we can leave behind a legacy in the form of an M&A platform. Why? Simply because we believe that in the 21st Century, being able to change a business is as crucial as being able to run a business. Mergers and acquisitions are such a key part of many investment cases that we want our clients to be able to repeat what we’ve done with them, only contacting us for new requests rather than a repeat of what we have already done for them.

We have a tookit which client teams like, which allows cross-functional teams in Private Equity Portfolio Businesses to easily contribute and to visualise their activities in easy to use dashboards. Why should busy people spend time searching for information when we can bring it to them?

  • Saved 40% on deal price
  • Enhanced & de-risked integration

“Engaging our team around a vision together with strong leadership enabled us to be successful, head off issues and seize opportunities”

We help with mergers, acquisitions, carve outs, post-acquisition integration as part of a buy and build strategy for Private Equity backed Portfolio Businesses. Does Change feature in your due diligence? Should it? If due diligence doesn’t include Change, then what’s your confidence level about the costs and complexity involved in delivering the investment case? The devil is always in the detail, and that’s why our collaborative approach with cross-functional teams allows for a thorough review of the elements which are most likely to cause costs to spiral and value to be eroded.

Why not have a read of some of our Insights, or browse our Case Studies?

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