The Finance Monthly M&A Awards 2021

F i nance Month l y M&A Awards 2021 - SPECIAL FEATURE - - 19 - focus on what you absolutely need to do to get the basics right and then consider what you could do. Every detail is important and needs to be understood and communicated appropriately. For example, can you pay people and suppliers on time, can you bill and receive cash? Getting ‘day one’ right is an important step in creating momentum and credibility in the organisation, so it’s not one to get wrong. It’s also important not to do too much and not to try to run before you can walk. Integration is a complex gradual process and too much change too quickly is the most common mistake. The change needs to be paced and sequenced appropriately, balancing the need to achieve synergies with the need to win people over. Agree on joint objectives Investing time in building great relationships with the organisation being acquired can pay dividends later on and will ensure the transition is seamless. Too often, leadership teams turn inwards and fail to build relationships with their new colleagues. The best companies ensure the leadership teams of both organisations come together through the integration process to talk about joint objectives, make plans and start to work together. Consider a leadership shake-up Settling leadership roles quickly to identify who can then help stabilise the rest of the organisation is an important step. It might also provide the opportunity to make changes in the leadership that aren’t necessarily related to the deal. In a context where change is already expected, there is a chance to look at teams and departments who might be underperforming or could use a shakeup and position the move as part of the broader integration process. Integrate teams and cultures From a culture and ways of working perspective, to win ‘hearts and minds’, it is worth spending time figuring out how to knit the two organisations together. Careful integration of teams t’s well reported that the virtual boardroom has new-found confidence following the rollout of COVID-19 vaccinations, the beginning of a new administration in the United States, Brexit completing in the UK and a strong stock market performance. With increased confidence, CEOs are actively seeking to buy growth. But many M&A deals fail to deliver the value case, struggling to drive the expected synergies, affected by a mass exodus of top talent from the seller and an inability to deeply integrate two businesses that are apparently similar but have different cultures and ways of working. So, what actions can you take to maximise your chances of being in the 2 in 10 deals that achieve the value case? Have clarity In the first instance, it’s about being clear on what it is you are trying to achieve - is it a real merger of equals adopting ‘best of both’ principles? Or is it a takeover? It’s important to be open and transparent in communications on this early on to set expectations, as each approach drives a different type of integration. Key for leaders at both ends of the deal is to articulate how the business fits within their strategy and then make sure throughout the process that each other’s strategy is well understood. Get ‘day one’ right Then it’s about working towards the first big milestone of ‘day one’ and having a clear blueprint for how you are going to operate that everyone buys into. The best piece of advice is not trying to do everything on the first day. First "From a culture and ways of working perspective, to win ‘hearts and minds’, it is worth spending time figuring out how to knit the two organisations together."