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Ephor Group has identified a proven set of standard best practices that ensure the
acquisition will be one of the 30 percent of acquisitions that adds shareholder value and
not one of the 70 percent that erodes stakeholder value.
GrowthMAP™:
Successful acquirers realize that successful acquisitions require When proper planning is completed, hidden
effective management of the acquisition process as well as gems such as assets and capability gaps are
post transaction operations to achieve the desired results. uncovered, revenue opportunities are
Therefore embedding a strong operational perspective in the highlighted and most importantly people
transaction process is critical to achieving desired results. empowerment is made easier.
By employing specific tactics and practices that mitigate both While successful acquisitions typically
investment and execution risks, the stated transaction target achieving scale economies,
objectives have an increasing probability of success. improving capabilities and acquiring some
unique combination of resources. Winners
The following acquisition and integration (A&I) best practices ensure that that objectives are clear and
presented are proven to provide near and long-term results. At the proper process and resources are
the highest level successful A&I is not all about winning the deployed to achieve the desired results.
negotiation around valuation or price1. A&I is about effective
integration practices aligned and executed timely to achieve The winners essentially design their
the desired business objectives. integration activities to support the
intended result at all levels, from all
required functions and then deliver the
resources and activities to garner success.
1
Bain Consulting Group 2010 M&A finding: statistically there is no correlation between deal premium and success, indicating that in the deal,
marketplace prices on average are fair.
2
Ephor Group | 1-800-379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056
GrowthMAP™:
1. MAPPING℠: is all about proper planning, preparation and prioritization that results
in the desired outcomes. MAPPING includes defining and mapping all of the following:
o Defining Key Success Factors.
o Defining Values & Principles.
o Defining MAT (milestones, assumptions, and tasks).
o MAPPING Operational Excellence.
o MAPPING Product Leadership, Portfolio Management, and Customer Lifecycle.
What is the price and margin and share of each product versus target market?
What is the portfolio offering? Gaps?
Where is each client?
o MAPPING Assets: Brand, Franchise Equities, Star Performers, etc..
o MAPPING People, Process, & Systems.
2. Alignment: Constituency alignment ensures that all constituents are engaged, incented
and working together in pursuit of a common set of outcomes. This can be achieved by
both creating a broad sense of purpose and also showing team members how the
transaction benefits them individually.
4. Prepare for contingencies. Know what you can and cannot do and contingency plan
and prepare for things which could go wrong. In one management consulting survey of
acquirers, we found about 80% of successful transactions were based on a clear
investment thesis and objective; for failed transactions, the proportion was about 40%.
5. Intelligence. Acquisitions all too often neglect revenue growth to focus almost
exclusively on cost synergies. The most successful transactions are treated holistically
and not on a functional basis.
6. Navigator. Having a champion, or sponsor, that provides advice and counsel to the
project manager, integration team, and key employees is critical to ensure the
transaction strategy becomes real. Any integration will face hurdles and obstacles and
lose momentum over time, therefore this role ensures priorities and objectives are
properly communicated, achieved, and that throughout the process the right quality of
skills are married with the right quantity of skills in order to deliver the transaction
stated objectives.
7. Group Effort. Involve operations and be sure to create advocates at all levels. Allowing
or encouraging functional leaders’ absence from acquisitions is a most common
mistake. Advocates by nature are respectful and identify with the need for effective
integration planning and execution.
Ephor Group | 1-800-379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056
GrowthMAP™:
The outcome of this “work session” is to establish the concept and understanding of a “Holistic
Organizational Perspective”, while “MAPPING” the key functional areas that need to be involved, and
identify the key advocates or sponsors who are required to achieve the desired results.
Ephor Group | 1-800-379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056
GrowthMAP™:
Conclusion
Strategic transactions all too often fail to perform to financial expectations because operating and people
issues are not mapped and aligned.
While numerous research studies have found that financial performance is on average 200% higher with
effective integration and change management practices companies: organizations continue to go execute
acquisitions without appropriate integration planning and project management support.
The business climate today is less forgiving, more tightly regulated, and more risk averse. Therefore the
concept of a “holistic approach” to Post Transaction Integration Services cannot be underestimated or over
deployed.
Contact us for more precise details on: Post Transaction Best Practice and Processes to
achieve effective integration activities.
Ephor Group | 1-800-379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056
GrowthMAP™:
Ephor Group | 1-800-379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056