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  • Type: White paper
  • Date: 9/15/2011

Case study: Pre and post-deal planning 

Pre and post-deal planning
How do you avoid making some of the mistakes that have slowed and derailed so many FS mergers and integration over the years? Here are a few case studies that highlight some hurdles that have been faced and how they were overcome.
Proper planning
pre-empts integration issues
FS spin off
sees seamless separation
Preventing a
culture clash between two teams
Pre and
post-deal
planning

Rushing the due diligence on a merger left a big bank with a lot of questions – and unable to make key decisions until the deal had closed. Fortunately, KPMG was on hand to turn complexity into clarity.


Explains a KPMG advisor who worked on the deal: “Coming into the deal just before it closed, we immediately spotted many unknowns in relation to the target company’s operating model.


“Once we’d accurately scoped out the issues at stake, we split the integration work into several streams then connected up each team with its counterpart in the other company,” said the advisor.


“Next, we set the various teams to work to produce performance plans and KPIs for their parts of the new business – no easy task given that much of the financial information was missing due to the original lack of due diligence,” he said.


The integration soon began to move in the right direction and gain momentum – although at the time of publication it seemed set to go on for 18 more months, “far longer than it really ought to,” says the KPMG advisor.


“Unfortunately, we’re still doing work that should have been completed before the deal was even signed.”

 

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To learn more, download the full report, contact your local KPMG member firm or email banking@kpmg.com to talk with one of our FS M&A experts.