Mergers and acquisitions

More than 85% of mergers and acquisitions fail

Its a hard statistic to swallow, but a recent KPMG study found that more than 85% of all merger and acquisition deals fail. Going through the process of a merger or acquisition can be a challenging exercise for everyone involved. Although numerous business benefits may have been identified, it is widely acknowledged that lack of planning both prior to and during the merger or acquisition process can be the biggest hurdle to realising these.

Reasons for failure

There are a number of reasons why a merger or acquisition may fail, including: o o o o o o o Inadequate planning and due diligence Lack of strategic direction and governance Unclear or inconsistent objectives and outcomes Insufficient understanding and management of associated risks Poor communication leading to employee disengagement Incompatible business cultures Loss of key staff and skills

A company can also be exposed to the risk of decreased performance, effecting profitability and staff morale due to an imbalance of time and focus being spent on the merger or acquisition process.

Reducing the risk of failure

There are a number of actions which will help minimise the chance of a merger or acquisition failing. Planning and strategy Good planning at the start of the process is essential to the successful implementation of a merger or acquisition. Having an agreed strategic direction and a supporting implementation strategy in place will not only result in a faster and smoother integration, it will also reveal any potential pitfalls before the merger or acquisition process begins and allow for the introduction of measures to manage these. It also enables consistency and accountability across the business and limits damage to business performance by providing a focused approach, clear direction and more efficient use of time and resource. Risk management The merger and acquisition process can be littered with risks, ranging from financial, legal and organisational to management, people and integration. A comprehensive understanding of the risk management process and its application should be an integral part of any business plan. By identifying and assessing risks, organisations can ensure they are adequately prepared to allocate, manage and monitor these so that they do not impact on the delivery of the agreed objectives and outcomes.

0845 519 7662 | www.clearviewbusiness.com | info@clearviewbusiness.com

Planning | Risk | Performance | People | Intelligence

How Clearview can help

The team at Clearview are specialists in strategy planning, execution, risk and performance management. In excess of 100 organisations currently use our services. These organisations have turnovers up to 340m and 2000+ employees and on occasions are subject to extensive internal & external regulation and review. Our customers are loyal. Many have used our services for over five years and have seen significant benefits as a consequence, including year on year delivery of their strategic plans and improvements in management efficiency and organisation performance. Many have received complimentary remarks from external audit reviews about the effectiveness of their organisations performance management culture, due to the implementation of Clearview.

Benefits of using Clearview

Clearview provides a single collaborative tracking and monitoring system, which not only enables the business to ensure it is delivering against its merger and acquisition objectives but also helps to create a common purpose and focus on what is required across the organisation. Using Clearview before, during and after the merger and acquisition process enables an organisation to: o o o o o o o o o Significantly reduce the risk of a re-structure failing and as a result ROI being lost Ensure the integration of processes, people and technology is as smooth as possible Embed strategic consistency and shared values Have a clear set of objectives and outcomes Undertake SWOT and STEP analysis of the existing business and target company Create a detailed merger or acquisition plan and track agreed deadlines and individual actions Identify, allocate, monitor and manage risks Provide transparency for the project team and all stakeholders Evaluate activities and outcomes to inform future planning

Implementation
Our consultancy team can be involved as little or as much as you require. They can deliver expertise such as: formulating the strategy for a merger or acquisition; identifying, SMART-ening and prioritising strategic goals; providing programme and project management; supporting risk assessment and tracking. Our solution is based in the cloud (although on premise is also supported) meaning it is easily accessible anytime, anywhere while at the same time being completely secure. Clearview is easy to install and most organisations are up and running in just 1 2 days. The software is intuitive and comes with a range of support tools. Once the software is installed, full training is provided. In addition, all our customers have access to our dedicated, responsive support team who are available for advice or support by email or phone Monday Friday 9am 5pm.

Screenshots of Clearview Business

0845 519 7662 | www.clearviewbusiness.com | info@clearviewbusiness.com

Planning | Risk | Performance | People | Intelligence