Riding the M&A Wave...
- Tactical Post Merger Integration Consulting Services

M&A Strategic Consulting Services in the Forefront:

With all the Merger & Acquisition (M&A) activity lately, it comes as no surprise to see many consulting firms offering services catering to companies caught up in the frenzy. It seems, however, that everyone involved in M&A deals are preoccupied with the strategic side of the transaction. After all, the strategic vision contemplated by the deal is the glamorous part of the business. For example; merging two competitors in order to expand market share, or having a distributor buy a manufacturer in order to improve development, quality, or the supply chain is what gets investors excited and boosts a company’s value. Consultants who advise their clients regarding who to acquire (or be acquired by), or how much the acquisition is worth, or how to structure the management buyout packages are reaping huge fees.

M&A Tactical Consulting Services are Just as Important:

The tactical part of an M&A transaction is less glamorous. It involves, among other things, the consolidation and elimination of redundant activities, and is usually considered the low hanging fruit in a merger. Back-office functions, such as Administration, Accounting, Human Resources, Payroll, Facilities Management, Procurement, Sales Order Management, and sometimes even Manufacturing and Logistics, are typical targets of tactical integration and consolidation initiatives. These are the areas where the resulting larger, post acquisition, company achieves economies of scale (2 + 1 = 4). And, the sooner this tactical integration and consolidation takes place the sooner the company’s bottom line will improve and the sooner their return on investment can be realized. All too often, however, the task of finding out which business processes are similar, different, and best suited for the merged business, is underestimated by management - who’s primary concern is validating and realizing the strategic objectives of the merger.

Technology’s Role in M&A Tactical Consulting Services:

Nearly all back-office functions are facilitated and supported by business information systems, commonly known as Enterprise Resource Planning (ERP) Systems. These ERP Systems have grown in complexity over the years. They are often customized to meet the specific needs of a particular company, and are linked with other systems to create a complex web of interfaced business applications. As a result, no two companies perform the same business functions the same way, or use the same systems in the same way. A simple example is the difference between the acquiring company’s accounts payable process and systems and that of the acquired company. Merging this should be very easy, except that the accounting software, vendor database, open invoices, payment policies, bank accounts, and electronic banking capabilities all need to be compared, integrated and consolidated - usually by selecting and implementing a best fit solution. And, let’s not forget the task of motivating and training the staff who stays during, and beyond, the consolidation. Multiply this effort across all the functions of a business, and you’ve got a significant project. For another perspective on IT and Post-Merger Integration, see this research document.

Who Provides M&A Tactical Consulting Services:

Finding someone to help with the strategic side of an M&A deal is much different from finding someone to help with the tactical side of an M&A deal. On the strategic side, it is more important to find someone with financial knowledge and connections, and high- level marketing and business development experience. On the tactical side, it is more important to find someone with detailed accounting, operations and technical knowledge and experience, coupled with cross functional project management knowledge and experience. Most companies turn to existing employees, and contract consultants to fill the tactical roles in the post merger integration effort. The employees might have the detailed business process and system knowledge and experience to do the job, but they are usually overextended and preoccupied by the changes being brought about by the merger. They also may be disgruntled and unmotivated to do the job well. And, most employees are inexperienced in the type of cross-functional (and cross-company) project management required by post merger integration. Contract consultants, especially those who have been working with the company for a while, have the detailed business process and system knowledge and experience to do the job, and they may have the cross-functional (and cross-company) project management knowledge and experience.

Some companies recognize that the needs of a well planned, and executed, post merger integration project can only be filled by consultants who specialize in these types of projects. That’s where JEM Consulting and BTAG (Business Technology Alignment Group) come in. Our partners and associates have experience in a wide variety of industries and business functions, including; consulting, technology, consumer products, financial services, insurance, industrial manufacturing, finance, accounting, information systems, sales and marketing, supply chain management, logistics and manufacturing. JEM Consulting and BTAG’s recent post merger integration projects include: LVMH Perfumes & Cosmetics’ acquisition of Fresh, Intelsat’s acquisition of PanAmSat, and British Petroleum’s (BP) acquisition and consolidation of Castrol. We are located in Armonk, NY. For more information, visit our website at www.jemconsult.com, or contact Gary Jacobs at 914-260-2851 or gjacobs@jemconsult.com.

So, if you’re involved an M&A deal and need help with the tactical aspects of your post merger integration project, or if you are an employee or consultant looking to leverage your business process and systems knowledge and experience, M&A Tactical Consulting Services might be your ticket to Ride the M&A Wave.