Post-Merger Integration: The Intelligent Approach

Mergers and acquisitions can deliver outstanding returns but they are not without risk. Effective post-merger integration is the key to optimising financial returns and mitigating risk.

Recent research by AT Kearney shows that the execution of post-merger integration, Calibre's areas of speciality, is critical to the success of any merger or acquisition.

Effective Post-Merger Integration starts with Goodwill

In an acquisition the purchase price that you have paid has two main components, the value of the physical assets you have acquired and goodwill.

Goodwill is usually the larger of these two components, with the opportunity for you to leverage the greatest returns. The assets that underpin Goodwill are your Employees, Customers, Brand and Intellectual Property.

In a merger there is no goodwill for accounting purposes but the principle is still the same - Employees, Customers, Brand and Intellectual Property are the cornerstones to optimising returns.Imagine the financial returns you can gain from an aligned culture with motivated, dedicated employees, strong brand positioning, and ensuring that you retain your best people and customers, rather than losing them to your competitors. This is the power of your Goodwill assets in post-merger integration.

The Essential Ingredient of Goodwill is People

Calibre's approach to post-merger integration ensures quality of results through Culture, Leadership and Communication. These three elements are essential in ensuring seamless and successful integration and they are all about people.

During the integration we will seek to align organisation culture, provide effective leadership and ensure timely and consistent communications. We will engage and motivate your employees in the integration project giving them the opportunity to participate in driving results and to contribute to the end result. Results driven by people.

Furthermore, let's revisit the asset that underpin Goodwill. Your Employees are people. Your Customers are people. Their collective loyalty and alignment to your Brands affects the value of your Brands. Your Intellectual Property is created by the applies intelligence of your Employees. Again, the key to success is all about People.

Having motivated, loyal employees will ensure that you do not lose your key talent to your competitors potentially allowing intellectual property to walk out of the door with them. Your employees will also provide exemplary customer service ensuring that you do not also lose customers to your competitors. Loyal employees and customers will then in-turn contribute to the reputation and strength of your brand.

There is no doubt. The people aspect of your post-merger integration right and everything else falls into place, giving you optimal returns from your investment.

Delivering Optimal Financial Returns for You

At Calibre Business Integration we provide you with an intelligent approach to post-merger integration that delivers not only the integration project to scope, deadline and budget, but will also identify and deliver all measurable financial returns for you.

Our innovative post-merger integration approach includes:

• Cultural alignment;
• Brand alignment and positioning;
• Protection of intellectual property;
• Customer retention;
• Seamless integration of systems and operations;
• Internal and external communications strategies;
• Effective change management;
• Identification of financial returns and how they can be captured.

Successful Outcomes

In addition to ensuring your post-merger integration is a financial success, you will also have the benefits of:

• Retention of key talent;
• High morale and a sense of shared values among employees;
• Motivated, productive employees;
• Retention of loyal customers;
• Improved customer service levels;
• Strong brand positioning and reputation.