The best-case scenario of integration planning start
- This topic has 3 replies, 3 voices, and was last updated 2 months, 3 weeks ago by
.
-
Posts
-
I understand that the best-case scenario for starting integration planning is before the M&A deal is finalized, ideally during the due diligence phase. While I acknowledge that the timing may vary depending on the situation, I would like to learn from those who have firsthand experience, whether through successful strategies or challenging lessons, about the ideal time to discuss and plan the integration process and how best to initiate it.
I understand that the best-case scenario for starting integration planning is before the M&A deal is finalized, ideally during the due diligence phase. While I acknowledge that the timing may vary depending on the situation, I would like to learn from those who have firsthand experience, whether through successful strategies or challenging lessons, about the ideal time to discuss and plan the integration process and how best to initiate it.
Keunyoung, when my firm, a federal contractor, was acquired we had a near miss in that no one thought to include our contracts/subcontracts manager in conversations with the buyer until a week before close. While nothing went awry and the deal went through generally as planned, I have heard horror stories from others who failed to do due diligence and form a strategy around the terms of customer contracts including severability and novation in the case of acquisition before it turned into a dumpster fire. The takeaway for me has been that, among all things to consider before the deal is done, any contracts or purchase agreements that directly impact the revenue forecast must be carefully considered and impacts mitigated during due diligence and before a final purchase price is agreed upon.
We’ve been successful starting integration planning at least 2 months before Close, but it depends on the size and mechanics of the deal. If early signs are positive that the deal will move forward, then you have the luxury to start earlier (with obvious limitations due to confidentiality), but a lot of PMI can be started within AcquireCo side early. Later PMI kick-offs bring more stress to the team, and more pressure on the IMO leader to ensure all aspects of the planning are covered in a very short time.
- You must be logged in to reply to this topic.
