We Begin by Facilitating the Development of an Integration Project "Flight Plan"
with an Executive Team Integration Strategy Briefing
Generally, senior company executives underestimate both the skills and the costs (5% to 10% of the deal value) required to integrate two businesses. While they may spend significant fees on deal advisers, they often then take the post-deal work in-house. They ask their management teams, inexperienced in M&A and who also have full-time daily responsibilities, to "just integrate" the two companies.
Post Merger Integration Rule 1:
Minimize Disruption to the Existing Business.
Why Recommend or Hire PMI Advisors (PMIA)?
- Why Sellers Hire PMIA - M&A transactions seldom result in all-cash deals due to various types of escrow, earn-out, contingency or claw-back provisions. By including PMIA's services in the transaction costs, sellers are assuring the probability of the receipt of future payments as a result of a successful integration. See "$25k - Future Payment Assurance Package" below.
- Why Buyers Hire PMIA - PMIA's Project:100 Days™ consulting methodology helps both private and public mid-market companies that don't have the tools, procedures, checklists and resources in place to manage this project, since they may not be serial acquirers.
- Why PE Firms and Family Offices Hire PMIA- As these organizations pursue bolt-on acquisitions for their portfolio companies, the management of the portfolio companies often need PMIA's assistance in the merger integration.
- Why M&A Advisors, Attorneys, and Accountants Recommend PMIA - On the sell-side, even though these parties typically withdraw from the picture upon deal-closing, no one wants to be associated with "deals that go bad". On the buy-side, because of the on-going nature of the relationship with the acquiring companies, these parties are invested in the long-term success of their clients and work diligently for the success of their clients M&A deals.
Project:100 Days™ - Project Management Methodology
Start with an Onsite Executive Team Strategy Briefing for the development of the transition roadmap which is key to achieving the full value from the pending acquisition. We provide organizational structure during this transitional period. When a client calls in PMI Advisors, the integration staff is supplemented with the tools, checklists, templates and resources that allow the team to get the integration project done without interrupting the everyday work of the company.
Our Project: 100 Days™ methodology is based upon the proven project management approach of identification, assignment, and coordination. Additionally, our Preflight Integration Checklist 500™ is a comprehensive task listing developed from involvement in numerous M&A transactions. We review each activity with the integration team to ensure that all relevant tasks are identified and critical items are not overlooked.
ROI - Pricing - Fixed Price or Flexible Support
Companies often underestimate the management time, effort and energy required for the post merger integration project, resulting in a significant toll on management capacity and a costly mistake. The value that we deliver far exceeds the cost of our services. One may view our services as an "insurance policy" reducing the risks associated with M&A deals. We work with clients on large deals, but we also know that not all clients warrant full-time dedicated onsite support. Therefore, we offer a variety of service levels. For example:
- Fixed-price packages, such as our "$25k - Future Payment Assurance Package" for sellers.
- Flexible integration support services for buyers, where one or two PMIA professionals work with the integration team on a part-time basis.
The flexible approach may be useful for acquirers that may infrequently do deals or that have in-house resources that just require some additional integration project management expertise. The Executive Team Strategy Briefing is offered at a reduced price of only $1,000. This session also provides PMIA with the necessary information to prepare a proposal for further assistance.
Additional Resources on Demand
Today's companies are lean. There's no such thing as extra personnel just waiting to work on a post merger integration project. Yet this "hot" project won't wait. PMIA professionals work with the team during the initial integration project phase in small, highly experienced groups and stay involved on a part-time basis for coordination meetings, steering committee meetings or work stream updates. We build strong relationships with our clients and take the time to transfer our knowledge to improve our clients' corporate capabilities.
PMIA will help identify, plan, track and realize the deal synergies that prompted the pursuit of the deal in the first place. If at any point our client feels that more support from us is needed, then we are here to help.