In corporate practice, mergers and acquisitions (M&A) are commonly chosen as a way to overcome the limits of organic growth, to enter new markets or increase the depth of value added.
The success of M&A projects often becomes apparent only after the transaction. The first hurdle to overcome is integration, a key factor for enabling the expected synergies. From the company’s perspective, the real work starts only after contract signing, when post-merger integration begins. Often the focus lies on value-adding business processes and units at first. Unfortunately, many projects neglect to give sufficient consideration to the fact that a consistent management approach which matches the business profile is a key success factor for companies – and their mergers.
The finance department not only plays a central role in negotiations and financing; after the transaction is concluded it finds itself confronted with a changed situation in the organisation. On the one hand, the CFO – as a business partner to management – makes a significant contribution to the success of the acquisition and the realisation of potential synergies. On the other hand, his or her own finance organisation has to adapt in order to provide the newly-formed company with optimal support.
The following items should be on every post-merger integration checklist:
Successful financial integration gives management the tools it needs to manage the new business and therefore represents an important success factor for overall post-merger integration. The tasks involved depend on the degree of integration and can be executed in a zipper-like fashion, allowing each phase of integration to build on the preceding ones.
Based on many years of experience and state-of-the-art know-how, CTcon offers customised integration solutions, partnering with you in design, transformation and change management. We will guide you reliably through the complex integration process and participate in operational integration activities.