Peter Baynham's overview presentation where he addresses what happens in a Merger and Acquisition process. Slides used at an event hosted by Ellwood Atfield. 12-06-2013

1. M&A Integration
Why does it
so often fail?

2. M&A Integration
Agenda
• What happens in an M&A Process?
• Why do they succeed? Or, more usually fail?
• What should happen?
• Examples—Good and Bad
• Top Tips to make it work

3. The M&A Process
Essentially six major steps
1. Formulate
2. Locate
3. Investigate
4. Negotiate
5. Integrate
6. Long Term Development
(Merger repair?)

4. Why do so many M&As fail?
Paper by Havard Business School
– Two fundamental reasons to acquire
– Boost current performance
– Redirect the company

5. Why do so many M&As fail?
“Success or failure of an acquisition
lies in the nuts and bolts of integration”

6. What should happen: 1?
• Look at the last deal done and
learn from what went well and
what was a problem—ask the
people on the shop floor
• Plan integration early and ensure
deal team have skin in the game
• Take communication very seriously
and not just as an add on
• Analyse the cultural fit

7. What should happen: 2?
• Have a board that isn’t afraid to
pull the deal
• Use the people that “know” for the
integration---bring both companies
together
• Be clear about outcomes and a
timetable
• Manage the integration like any
other project

8. Examples
• Good
– Standard Chartered Bank
– Drinks company HQ in UK
• Bad
– HP/Autonomy
– Daimler/Chrysler

9. Five key tips for success
1. Determine the required or desirable
level of integration
2. Select a highly respected and
capable integration leader
3. Select dedicated, knowledgeable,
capable people for integration team
4. Speed up decisions rather than
focus on precision
5. Provide continuous communication
and feedback

10. Five key tips for success
1. Determine the required or desirable
level of integration
2. Select a highly respected and
capable integration leader
3. Select dedicated, knowledgeable,
capable people for integration team
4. Speed up decisions rather than
focus on precision
5. Provide continuous communication
and feedback