PMIA works with our client's team to identify and manage the numerous tasks that must be addressed across the organization to be ready for Day 1.
Sample Tasks in Preparation for Day 1
The PMIA Preflight Integration Checklist 500™, which includes over 500 post merger integration tasks, has a subset of Day 1 preparation tasks. This checklist has been developed from involvement in a number of transactions, as well as information assembled from our subject matter experts and other sources. Using the PMIA methodology our client can significantly reduce the risks associated with overlooked or neglected tasks.
- Develop a high-level view of the integration strategy & roadmap that will be adopted post-close.
- Ensure that the integration team and senior management are confident of the key messages to be communicated to staff.
- Communicate the acquisition & integration objectives for the combined entity across the integration team.
- Ensure Day 1 communications address customers and key suppliers.
- Establish Day 1 governance and ground rules, and ensure they are well-understood by the acquiring company's management.
- Be prepared to address Day 1 decisions on branding, logos, email addresses, websites and use of business names.
- Double check that Day 1 plans consider business security/continuity and external access to sensitive data.
- Identify potential critical staff (top talent) of both organizations, who may be at risk of early departure, and meet them during the first few days post-close.
- Identify priority legal and compliance tasks.
Typical M&A Deal Drivers
- To create and exploit synergies (the primary motivation)
- To increase market share
- To acquire talent that is not available within the organization
- To acquire products and/or technologies
- To strengthen the core business by expanding in areas of greatest competence
- To gain footholds in other domestic or international geographic areas
- To achieve critical mass or competitive size
In general, most businesses rely on the chain of command to flow down communication through the organization, but in this case, it is crucial that teams get information unfiltered from the top. When two companies begin the process to merge operations, communication is key.
Successful M&A isn’t just about having a strong operational post merger integration plan. In order for the transition to be smooth, a well thought out M&A communication plan, to be developed especially for the announcement and deal close periods, is a vital component.
PMIA can provide suggested communication templates for the various stakeholders that reduce the risks. Executing a strong and clear communication strategy on Day 1 is crucial to successful integration.
Effective communication is often overlooked or underestimated in the flurry of activity surrounding a deal closing. PMIA can provide communication templates that reduce these communications risks.