Case Studies

Acquisition due diligence

Finding a Needle in a Haystack
Growth through acquisition can be a very opportunistic strategy to take advantage of a depressed market. If implemented correctly, it can lead to an increase in market share, profits, as well as competitive advantage... Read more

Recipe for Success
Post Merger Integration

Buy-side advisory

When combining ingredients in a recipe, execution is key to producing a delicious product and avoiding something inedible. Similarities can be made when moving through the process of combining two companies. Careful planning and a well-executed post-merger-integration (PMI) strategy can avoid a recipe for disaster and produce a desired outcome.

While M&A activity continues to increase, the odds of success continue to be the major challenge as a high percentage of mergers don’t produce the anticipated return. It is not enough to choose the right partner that will align culturally, organizationally and strategically, but it is equally important to have a well-planned PMI process that can manage the strategic, operational and financial objectives behind the transaction as well. The ingredients can’t necessarily be changed once the deal is signed, but by following the proper recipe instructions and executing well, you can achieve a pretty tasty outcome.

Genoa recently completed a PMI project for a large international med-tech company with operations all around the globe. Our client closed on an acquisition of one of their main global competitors. With a newly purchased company under their wing, they wanted to realize the full benefit of combining the two companies into one.

Genoa began the process by working with the client to set targets upfront on what the headcount synergies and non-staff cost savings would be. These targets provided an ending goal to work towards as the companies transitioned. Our team assisted in developing a clear strategy, a timeline and activity checklists to accomplish these goals and to ensure that all parties involved were on the same page.

Not all of the focus is on cost synergies. Information systems integration is usually what ties everything together and can be a very painful process. Through coordinated communication and clarity of duties, ERP and CRM systems were successfully assimilated without any negative effects becoming visible to the customer.

Genoa also helped in the transition of leadership at the target company. Since the two companies had different fiscal year-ends, it was important to have a transition plan with interim sales incentives in place to maintain performance and retain key talent until the companies were in sync. By retaining and motivating key talent, our client was able to make the transition and hit the ground running with minimal loss in momentum.

A common mistake is that companies become engrossed in integration and lose sight of the customer. The customer plays an integral role in realizing opportunity synergies. With this in mind, we consciously delayed the integration of the sales and customer facing activities until we were comfortable that this integration would be seamless and unnoticed by the customer. An extended time frame allowed the two sales cultures to mesh while receiving proper cross-sales training of each company’s products. Integrating at a proper pace and in the proper order minimized the potential for sales force and customer dissatisfaction.

When it was all said and done, Genoa proved to be instrumental in helping the client achieve cost savings and synergies of over several million dollars. On top of this, our client is well positioned to realize opportunity synergies going forward. With Genoa’s PMI recipe, the client was able to gain the tasty outcome they were looking for.