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

Case study: Proper planning pre-empts integration issues 

Proper 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

The acquirer, who hadn’t done a major deal in more than a decade, brought in a team from KPMG’s US member firm to help its in-house Integration Management Office (IMO) plan the deal’s closure and post-deal integration.


When a large US bank bought a smaller but strategically important rival, integration management planning proved the critical success factor.


KPMG’s experts began by evaluating the IMO team itself, which was behind the curve when it came to the latest merger-related management techniques. KPMG then introduced the team to a range of essential project-related management tools and templates and to collaboration techniques.


Next, KPMG helped the IMO map out the integration’s different work streams and who at the bank would be responsible for doing it – a major job but one essential to keeping the union on track and able to realize the benefits and cost and revenue synergies originally promised by the deal.


The result? A seamless deal closure – and a highly effective target operating model for post-deal conversion.


A KPMG adviser who worked on the deal recalls: “We added a lot of value to the client in a lot of ways. A good example was the way we made sure the bank kept close tabs on the deal’s dependencies and the interconnected risks in the management of the integration teams. Among its benefits, this allowed the IMO to maintain an accurate picture of what needed to happen and when – while also allowing the different teams involved to understand how their actions would impact on the likelihood of the deal realizing the value the client needed it to.”

 

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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.