||March 31, 2014
Guide to Mergers and Acquisitions FAQ: Table of Contents
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The Mergers and Acquisitions Process
Key Phases of M&A Transactions
- What drives the need for companies to consider mergers and acquisitions?
- When is the best time to do a transaction?
- What are the key risk areas in an M&A transaction?
- What common mistakes do companies make during a transaction?
- What types of resources are needed to complete a transaction?
- What are the regulatory and tax considerations of a transaction?
- What is the board’s role in a transaction?
- What are the key phases of a transaction?
- Why focus on due diligence?
- What should be the focus of due diligence efforts?
- What is the difference in these types of targeted values?
- Based on the above, what are some due diligence best practices to consider?
- Who should be part of the due diligence team?
- Are checklists helpful during due diligence?
- What is a typical deliverable of the due diligence process?
- Can information be shared between companies before the deal closes?
- What are key considerations during this phase?
- How should we structure the integration team?
- Who should be on the PMO and functional teams?
- What is the best governance model for the integration teams?
- How do we define the scope of our integration team?
- What is the significance of the drivers of value during integration?
- What approach should be taken for integrating back-office functions?
- What approach should be taken for integrating IT systems?
- How should integration plans be structured?
- What are the key components of a Day 1 plan?
- What are the key components of a 100-day plan?
- How detailed should Day 1 and 100-day plans be?
- What is the role of a Transition Service Agreement (TSA)?
- What functions/systems are commonly subject to TSAs?
- How long should TSAs last?
- Managing risk: What are the key types of risk in most integrations?
- How can the risk of losing customers and/or orders to competitors during integration be controlled?
- What can be done to reduce the risk of losing essential talent?
- How can companies prepare for and deal with the loss of key employees?
- Capturing synergies: How can realistic synergy targets be set?
- How deep in the organization should synergy targets be pushed for PMO monitoring?
- What are best practices for developing and maintaining integration project plans? Should functional teams and cross-functional sub-teams be held to standards/templates for project planning?
- What project management software (if any) should we use?
- How often should the PMO’s master project plan be updated?
- How often should functional team plans be updated?
Key Functional Integration Areas
- Why do many integration efforts fail to reach the desired synergies?
- What role can HR play in the change management effort?
- How can organizations better enable their employees to manage through a merger or acquisition?
- What are some change management leading practices?
- How important is effective communication and what are some leading practices in this area?
Information Technology (IT)
- What are some of the unique issues related to integrating finance organizations?
- What key risks should finance executives consider in the planning of the integration?
- What are some key Day 1 planning items on which to focus?
- Beyond Day 1 to 100, what are the key considerations from a finance organization perspective that need to be addressed to enhance the transition?
- What should the finance organization plan for beyond Day 100?
- What are some of the unique issues related to integrating IT organizations?
- How does a chief information office (CIO) manage competing priorities?
- What is the best approach to managing the integration process?
- What key risks should IT leadership consider in the planning of the integration?
- How do organizations manage all competing IT initiatives?
Marketing and Sales
- What are the key issues in integrating the procurement function?
- What is the best approach to managing this type of multipronged effort?
- How should teams best organize to achieve these objectives?
- Isn’t most of an organization’s data around its vendors and supply chain proprietary and confidential?
- Where do savings typically come from in the procurement/supply chain functions?
- Are there other sources of value within supply chain/procurement?
Internal Audit/Risk and Compliance Functions
- What types of issues can impact the marketing and sales organization during an M&A transaction?
- What are leading practices to address some of these key issues?
- How can internal audit assist an organization during the M&A process?
- How can internal audit add value during due diligence?
- Can internal audit be involved in integration planning and execution?
- What is a post-acquisition audit?
- What typically keeps internal audit from being more involved in M&A efforts?