Acquiring and integrating a business is a complex set of activities – selling and separating a part of a business is often more complex. Significant change management, staff morale and many technical issues all need to be carefully managed, usually in a very short period of time. PwC’s integration and separation specialists provide you with the expertise and support to do just that.
Phases
We recommend you start planning for the integration or separation well before finalising your deal negotiations. Why? Because you’ll need time to focus on the transitional phase, including the form and level of services that will need to be provided post-deal by the seller, so that these are properly included in the Sale & Purchase Agreements. You’ll also need to allow time for appropriate resource planning, as integration is likely to require input from your most critical people.
The extent of integration you require can vary from simple interfacing for accounting purposes only, through to complete integration of all functions, products and services. This will be driven largely by the purpose and intent of the deal and will also be influenced by the deal specifics – for example, if buying less than 100% ownership of the business.
A full or partial integration means that most parts of your business are going to be impacted and need to be involved in the planning and execution of the integration. Typically, significant workloads will fall on the supporting functions – information technology, finance and accounting, HR, and communications – where the greatest changes are required. It’s essential to plan for this activity, including freeing up key people to have sufficient time and space to carry out these often complex changes.
Our international research shows a strong link between the level of commitment to integration planning and execution, and the successful delivery of value from a deal. There is also a strong link to experience – if, as an acquirer, you’re used to buying and integrating businesses, you’re more likely to generate value than an inexperienced acquirer. Having experienced practitioners involved reduces the risk of value loss and increases the probability of your success.
No two integrations are identical – there are differing branding issues, legal issues, personnel issues, office and plant location issues – all of which need to be managed within the context of the strategic intent of the deal. Keeping that intent at the front of your mind – whether as the seller or the buyer – enables clear principles to be developed which will underpin and guide the complex journey ahead.
Synergy identification – whether it’s cost savings, revenue growth or market expansion – they are key to value delivery. Our tried and true templates support the management of the various synergy projects, and our experienced team can point to second and third order synergies that may not have been identified during the earlier phases.
Integration is a business programme
Whether you’re separating or integrating a business, you’ll need professional management and strong governance. We can advise on likely timings, potential resource requirements, governance structures, potential risks and pitfalls, as well as best practices on factors such as people management, cultural alignment, and staff morale.
It’s all about people
Integrating or separating businesses is mainly about people – the staff, suppliers and customers of both businesses. Aligning them to the strategic purpose of the deal goes a long way to making your transaction successful.
The “what does this mean for me?” question applies to all impacted people, so speed of decision making is a critical component of integration or separation.
Local and international experience
PwC is the only firm in New Zealand with a dedicated integration team focused purely on integration and separation practices. Our team brings together functional specialists from across PwC, both locally and globally, to ensure you’re benefiting from the right skills and experience at every point during your deal.
Talk to us about delivering the true value of your deal today.
