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| Copyright © 2015 Tata Consultancy Services Limited Navigating M&A Integration Consulting and Enterprise Solutions

Navigating M&A Integration

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| Copyright © 2015 Tata Consultancy Services Limited

Navigating M&A Integration

Consulting and Enterprise Solutions

M&A Integrations Can Challenge the Best-run Organizations

What can you do to pre-empt these challenges?

How do you capture merger synergies?

How do you achieve the target vision for the combined business?

Pre-deal: Get Ready

2. Evaluate integration readiness: Understand the business and IT environment – process and technical maturity, information availability, organizational culture, and so on.

1. Set the criteria for success: Define clear goals that outline the synergies and end-state vision. Use metrics to refine expectations through the integration.

Pre-deal: Get Ready

4. Make the most of due diligence: Use a comprehensive operational and IT toolkit for early validation of identified synergies.

3. Establish a PMO and a Center of Excellence: Ensure continuity between integration strategies and pre-deal objectives, and align integration initiatives across acquisitions to a common end-state vision.

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Absorption

Preservation Symbiosis

Portfolio

Rel

ativ

e si

ze

Type of Business

Spe

ed o

f Integratio

n

Level of Integration

1. Select an integration model

Pre-close: Set the Course

Low High

Dissimilar

Similar

SimilarDiverse

Slow

Fast

Pre-close: Set the Course

3. Plan for day-1 readiness, as it is a high-visibility event and sets the pace for integration

2. Take a capability view and create a detailed capability-level blueprint

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Post-close: Make the Journey

Integrate core business capabilities and transition critical business services

Prioritize activities that ensure business continuity and preserve value

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First 100 Days

Post-close: Make the Journey

Re-assess and revise initial synergy targets, and incorporate uncovered synergies into the plan

Focus on realizing key synergies; merging firms should operate as a single organization

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Beyond Day 100

Negotiate the Roadblocks

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Keep customers in focus:Avoid deficiencies in customer experience resulting from the integration process

Track program costs and risk: Monitor costs and risks early to allow for advanced course correction

Prioritize people aspects:Proactively help employees identify with the new organization’s vision

Build Repeatability and Execution Readiness

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Create an M&A playbook with integration processes, program practices, enablers, and key decision parameters

Establish an M&A governance program and delivery capabilities to execute integration cycles while minimizing costs and risks

Build an integration factory to aggressively deliver specific, repetitive integration tasks

Increase the Odds of Success

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Retain focus on the key areas of program cost and schedule, customers, and talent

Ensure integration-readiness and planning early in the deal cycle

Follow a systematic and phased approach

Build a capability level blueprint

12Copyright © 2016 Tata Consultancy Services Limited

Navigating M&A

Integration

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