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Acquisition Integration Team IS YOUR
Throwing the Deal’s Value-Drivers Overboard?
M&A isn't just about capturing market share; it's also a way to secure new capabilities, products, and customers. Whether you achieve these objectives depends on how successfully you integrate with an acquired company.
What is the composition of your integration team? ALL COMPANIES
B-to-B COMPANIES
6%
10%
48%
33%
Other
Ad Hoc Team
Part-Time Team with Supplemental Staff
67%
19% 16%
Full-Time Team with Supplemental Staff
11%
Part-Time Team
11%
Full-Time Team
8%
WBACK DRA
B-to-C COMPANIES
19%
13% 0%
14%
7% 13%
5%
Ad hoc integration teams perform inconsistently and elongate the timelines.
At what stage in the M&A process does your integration team begin integration planning?
MONTH ONE
17%
ALL
Opportunity Analysis
21%
B-to-B
13%
B-to-C
MONTH TWO
MONTH THREE
Due Diligence
MONTH FOUR
Deal Negotiation
MONTH FIVE
MONTH SIX
Deal Finalization and Anouncement
52% 52% 50%
ALL B-to-B B-to-C
14%
ALL
16%
B-to-B B-to-C
12%
ALL
11% 10%
B-to-B B-to-C
13% 6%
ALL
Day One
MONTH SEVEN
B-to-B
0% 12%
B-to-C
0%
BENEFIT
55%
Initiating planning during the due diligence phase keeps the integration plan focused on the deal’s value-drivers and ensures early interaction with the target’s employees—thereby increasing retention of key staff.
Does your integration team manage operational due diligence? ALL COMPANIES
B-to-B COMPANIES
B-to-C COMPANIES
63%
68%
54%
Yes
BENEFIT
Yes
Yes
Having the integration team conduct operational due diligence generates feedback on deal feasibility, scopes resource needs appropriately, and identifies synergies and divergences early on.
Source: "Strategy Implementation and Acquisition Integration: 2012 Global Corporate Strategy and Corporate Development Priorities Survey Results”: http://slidesha.re/JenkRY Definition: “All companies” includes all respondents to the survey, regardless of their business model. Original File: http://bit.ly/MklGl1
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