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FINANCE AS A CATALYST
FOR A SUCCESSFUL
MERGER OR ACQUISITION
SIX FOCUS AREAS TO ADD VALUE
TO THE INTEGRATION PROGRAM
Your company has just announced a pending merger or acquisition, and the Finance
“The Finance
organization has a key role in the successful integration of the acquired asset. As part of
organization plays integration effort, the Finance organization must develop and execute a plan that effectively
integrates the new business while controlling cost and risk. The decisions Finance makes
a critical role in are critical to realizing the anticipated value creation and its ability to communicate that
value to stockholders, creditors and other relevant stakeholders.
the planning and
The challenge is bucking the historical trend of mergers and acquisitions. Studies have
execution of the shown that many mergers and acquisitions fail to deliver the anticipated increase in
shareholder value. In fact, some mergers and acquisitions have been known to actually
integration plan.
destroy shareholder value. It doesn’t have to be that way. Thoughtful planning and careful
The right execution of the integration program can increase shareholder value and create the
scalable platform necessary to support future growth.
leadership and
Leadership at all levels of the Finance organization is required to successfully drive the
approach to the integration effort. Executive sponsorship will be most effective when it is visible and
committed to providing the necessary resources for a successful integration. Leading
integration will companies also commit dedicated leaders to each focus area to ensure that proper
attention is given to the integration program while maintaining the leadership and staff
enable the
necessary to run the existing organization during the integration period.
company to
The table below highlights six focus areas that are essential to any merger or acquisition.
realize the value Proper planning and methodical execution are the keys to a successful integration.
anticipated during Table 1: Top Focus Areas for Finance Integration
the pre- Focus Area Description
acquisition Program Management Leading the merger program to deliver value through
analysis and effective management of the integration process.
provide a scalable Workforce Planning Organizing the combined entity’s human resources to carry
out the work of the Finance organization.
platform to
Business Planning Managing the budgets and forecasts of the combined entity.
support future
Information Management Organizing the data structures and information flow required
growth.” for regulatory, statutory and management reporting.