Initiation Planning/Finalization Short-Term Implementation Long-Term Management

Phase IStrategic Acquisition Plan

Based on Industry Trends, Business Mission and Values, and Strategic Skills

Phase IIInitial Strategic Evaluation

of CandidatesEstablish Strategic Fit and

Financial Feasibility

Phase IIIInitial Due Diligence

Financial, Business and MarketDue Diligence

Valuation of Entity

Phase IVDue Diligence and

PlanningComprehensive Due Diligence

Establish Merger Team

Phase VFinalize Purchase/Sale

AgreementDevelop Clear Rationale for

Acquisition and PrepareMessage to be Communicated

Phase VIIShort-Term Business

PlanningPortfolio-Level Org. Design

Get Business Up and RunningCreate a Strong Foundation

Phase VIIIBusiness Planning and

Organization DesignFormulate Business StrategiesAlign Organizational Structure

Phase VICommunication and

AnnouncementManage Impact: Establish Model

for Communication

Phase IXOrganizationalDevelopment

Develop Organization andManagement Team

Pitfalls: Lack of strategic clarityor required resources

Pitfalls: Failure to identify obstaclesto achieving true synergies

Pitfalls: Failure to address non-negotiables; making promises or

establishing expectations youmay not be able to fulfill

Pitfalls: Varying expectations (internally

or externally) due tolack of communication;

not involvingright/enough people

Pitfalls: Making long-termdecisions that may later

need to be revisited;arrogant “acquirer

syndrome” Pitfalls: Inability to define desired culture; not

incorporating learnings for future acquisitions; not

reinforcing desired behaviours

Pitfalls: Failure to let structural nature of

integration driveorganizational decisions;

loss of best practices

Pitfalls: Failure to control message and timing of

information; failure toInvolve key managers

Pitfalls: Misidentification of type of integration; under

-emphasis on non-financial due diligence and planning;

over/under-estimatingvalue of synergies

Desirable Candidateor Candidates

Letter of IntentClose

the Deal Refine Integration Process

AlignedExpectations for

Integration

Desired Culture

Aligned Organization

Aligned PerformanceManagement System

Initiation Planning/Finalization Short-Term Implementation Long-Term Management

Phase IStrategic Acquisition Plan

Based on Industry Trends, Business Mission and Values, and Strategic Skills

Phase IIInitial Strategic Evaluation

of CandidatesEstablish Strategic Fit and

Financial Feasibility

Phase IIIInitial Due Diligence

Financial, Business and MarketDue Diligence

Valuation of Entity

Phase IVDue Diligence and

PlanningComprehensive Due Diligence

Establish Merger Team

Phase VFinalize Purchase/Sale

AgreementDevelop Clear Rationale for

Acquisition and PrepareMessage to be Communicated

Phase VIIShort-Term Business

PlanningPortfolio-Level Org. Design

Get Business Up and RunningCreate a Strong Foundation

Phase VIIIBusiness Planning and

Organization DesignFormulate Business StrategiesAlign Organizational Structure

Phase VICommunication and

AnnouncementManage Impact

Pitfalls: Lack of strategic clarityor required resources

Pitfalls: Failure to identify obstaclesto achieving true synergies

Pitfalls: Failure to address non-negotiables; making promises or

establishing expectations youmay not be able to fulfill

Pitfalls: Varying expectations (internally

or externally) due tolack of communication;

not involvingright/enough people

Pitfalls: Making long-termdecisions that may later need tobe revisited; arrogant “acquirer

syndrome”

Pitfalls: Inability to define de-sired culture; not incor-

porating learnings for future acquisitions; not reinforcing

desired behaviors

Pitfalls: Failure to let structural nature of

integration driveorganizational decisions;

loss of best practicesPitfalls: Failure to control message and timing of

information; failure toInvolve key managers

Pitfalls: Misidentification of type of integration; under

-emphasis on non-financial due diligence and planning;

over/under-estimatingvalue of synergies

Desirable Candidateor Candidates

Letter of IntentClose

the Deal

Measure andRefine Integration Process

AlignedExpectations for

Integration

Desired Culture & Competencies

Employee Value Proposition

Aligned PerformanceManagement System

Identify Top Talent

Identify Cultural Issues

Retain Customers

Re-enroll Talent

Talent Deployment

Establish Communication Plan

Create Employee Proposition

Develop Communication Skills

Ensure Understanding of Change Process

Phase IXOrganizationalDevelopment

Develop Organization andManagement Team and

Reconstitute Teams

Form Business/ People Strategies

Align HR Systems