Overview

The Merger or Acquisition (M&A) Lifecycle framework focuses executives' attention on all key issues that must be addressed in each phase, not solely those involved in getting the deal done. In this way, the needs of important constituencies – such as owners and other stakeholders, customers, employees, suppliers, and regulators – are more likely to be met, and the merger or acquisition to achieve its intended value.

While successfully navigating each phase of the lifecycle is vital, the "first 100 days" immediately following deal announcement are truly a critical time period for post-merger integration efforts. Often the success or failure of the entire merger or acquisition rests on the leadership, accountability and key decisions of those initial critical weeks. Having a decisive plan for these first 100 days, and for the key decisions and activities which must be accomplished during this timeframe, goes a long way toward increasing odds of success.

Manage Deal

• Develop Strategy
  An organisation evaluating mergers or acquisitions as growth options establishes its position.
  • Develop corporate strategies
  • Identify and assess M&A options
  • Develop acquisition rationale and intent
  • Agree on acquisition strategy

• Analyse Target
  The organisation assesses potential targets.
  • Determine acquisition criteria
  • Screen and prioritise candidates
  • Prepare preliminary deal shapes
  • Select target(s)
  • Agree on an initial target approach strategy

• Structure Deal
  The acquirer approaches the target and begins, and hopefully concludes, the acquisition.
  • Form the deal team
  • Conduct due diligence
  • Prepare bid tactics and strategy
  • Finalise the deal shape
  • Prepare offer documents
  • Approve the bid
  • Conduct final negotiations and bid conclusion
    
  • Begin mobilisation activities (such as appointing integration director, and preparing initial public relations plan and deal announcement)

Manage Transition

• Mobilise Effort
  The organisation establishes the methods and resources required to communicate the deal and conduct the integration.
  
  • Identify organisation and integration team leadership
  • Make initial strategic decisions
  • Build the integration framework
  • Set up a stabilisation program
  • Launch communications, including announcement of the deal

• Define Migration
  The organisation defines the integrated environment and how the organisation will migrate to it.
  • Map and analyse current environments to determine target environment
  • Estimate overall work effort and budget required
  • Establish integration sequence and timeline
  • Determine high-level approaches for human resources, customers, lines of business and technology

• Execute Integration
  The organisation conducts the migration to the integrated environment.
  • Perform detailed design, development and testing of the target environment
  • Communicate the target environment to employees and conducting training
  • Communicate to impacted customer segments
  • Convert to the target environment
  • Prepare for post-implementation stabilisation and support

Convergence