Merger and Acquisition Integration
In a recent study by Spencer Stuart the rate of successful integration and the realization of expected return for most mergers and acquisitions was only 17%. The key drivers of this poor value attainment have historically been, and remain, a failure to understand the critical cultural, business acumen, and investment alignment issues that drive successful integration of operational AND strategic business practices.
Mergers and acquisitions are complex transactions, both financially and organizationally. Requiring enormous due diligence, complex negotiations, and significant capital there is tremendous risk. Typically in acquisitions parties seek to evaluate market alignment, strategic fit, and proper valuation. At The Walton Group, we believe that there is another more critical component, Business Acumen, that has a more comprehensive impact on the success of a transaction than any other component. The ability to measure the alignment of an organizations propensity to consume resources and create long term value effectively manages the most critical risk areas from a transaction and ensures that the desired value creation continues long after initial consolidation efficiencies have been realized.
- Executive assessment and review
- Birkman Executive Assessment
- Judgment Index
- Functional process mapping
- Assignment of accountability review
- Journey mapping for complex change and integration
- Business analysis to support post transaction organic growth
- Understand the true valuation "trajectory" of the company
- Evaluate the match between the identified valuation outcome of the company and the leadership of the organization
- Identify mismatches between key team members and probable financial outcomes
- Increase company valuation through the realignment of non-value creating activities
- Optimize the utilization of resources to maximize value creation