Mergers, Acquisitions & Restructuring
Timothy J. Galpin and Mark Herndon in their book The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration At Every Level reveal 22,995 deals, with a combined value of $2.45 trillion, have been reported since 1998. The consolidation efforts are fueled by a desire to achieve growth rates in excess of traditional, organic growth initiatives. The Harvard Business Review reports that over time, 65% of acquisitions actually destroy more value than they create.
To insure value creation and the long term success of a merger or acquisition, a disciplined, strategic approach to the transaction is critical. Only when executed properly will that strategy increase the odds that the expected benefits will be fully realized.
Losing top talent and key leadership during such critical transitional periods can create significant, if not irrepairable, damage to the operating environment. Incompatible cultural differences and differences in decision making and leadership styles can create further conflict within the organization. All of these conflicts lead to internal instability and a decline in productivity and can result in the ultimate failure of the merger or acquisition, both strategically and economically.
In this time of economic turbulence, the role of HR & Talent Management advisors to a merger or acquisition is more important than ever; companies cannot afford to ignore the “people” part of the transaction.
Taking into account the initial strategy that prompted the merger or acquisition, Executive Impact assists in creating alignment and capturing synergy in merging or acquiring entities. In order to do so, we:
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Assess the “talent resources” of the organizations
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Identify and compare the company culture and corporate business objectives
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Assess and audit the Human Resources infrastructure, benefit programs, policies, processes and procedures; performing related gap analysis and recommendations for integration
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Develop overall strategies for talent integration and retention
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Collaborate with leadership to insure proactive communication
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Provide guidance throughout the integration process
Our goal is to streamline the time, resources, and expenses associated with the merger or acquisition. By assisting our clients in proactively assessing and effectively integrating the talent resources, we help them to create a high performance leadership team. By partnering with them to thoroughly assess each aspect of the human resources function, we help them to protect themselves from potential liability and to build a proper foundation upon which to operate the new organizational structure.
