Mergers

Planning them

Implementing them

Creating value from them

The success of any merger lies firstly in careful research and due diligence and then in skilful, swift and efficient implementation. But there is another dimension: the "merger dividend".

The merger dividend is the value created for:

  • the newly combined firm's clients
  • the firm's people
  • the partnership itself

Too often practices lose sight of the opportunity to achieve a step-change in performance and market position.

Whilst we are often asked to help with the market-mapping, due diligence and negotiation parts of the process, the really interesting work starts once signatures have dried on the heads of agreement. Then the process starts in earnest.

So, what is that process?

Intelligent Office Merger Framework

The Intelligent Office Merger Framework is rather like a large-scale jigsaw puzzle, with 16 pieces each of equal importance. In order to make sense from day one, each piece needs to have a dedicated sponsor (partner/director); each piece needs to fall into place in sequence (timescale); and each needs to dovetail with the others (alignment/integration):

Strategy (the burning platform/the shared vision/the dividend)

Culture (ethos, brand, reputation)

Leadership & Management (governance/partnership/management structure)

People (HR, L&D, compensation and benefits, recruitment, employment policies)

Clients (service enhancements, benefits, R&D, business development)

Funding (working capital required for restructuring, property, technology, brand)

Transformation (platform for change/special projects)

Best Practice (harmonisation of legal and operational processes)

Communication (including familiarisation programme)

Alignment (of structure: practice group teams/industries/offices/support operations)

Technology (systems/processes/innovation)

Office (location/property/space planning/environment/flexible working)

Finance & Risk (banking/audit/insurance/compliance; valuation of assets/work in progress/debts)

Remuneration (profit-sharing, incentive schemes, performance management)

Supply Chain (procurement & sourcing economies)

Efficiency (everything)

Each of these facets needs a phased plan of action highlighting the short, medium and longer-term priorities to ensure effective implementation and integration within an agreed and realistic timescale.

Key to coordination is the early formation of a small merger implementation steering group comprising key movers from each firm. They will take the overview. Each of the carefully chosen sponsors will then form a small working party to focus on each aspect of the merger and here it can pay real dividends to involve younger professionals in the process. We advise clients to combine some of the groups so that the number is more manageable. For example, strategy, culture and leadership/management are often addressed by a single working party. Firms usually find 5-6 groups a workable number, each reporting regularly into the merger implementation steering group. 

How we can help

In addition to maintaining the focus on securing the "merger dividend" through effective use of the framework, we also help in very practical ways to drive efficiencies and unleash value through the effective combination of back office resources. Often, there are sensitive issues to resolve in planning for successful integration and here we play a vital but neutral role in ensuring cohesion.

The pace of integration can be the difference between success and failure. Our experience in helping firms to accelerate the process has shown that momentum carries with it enormous benefits both in terms of market impact and of financial performance.  

Benefits of our experience

  • We bring much needed structure and process to merger planning
  • We bring broad experience of merger best practice
  • We bring a combination of strategic advice (big picture) and practical assistance with implementation (detail/action)
  • We bring a combination of objectivity, impartiality, commerciality and common sense to a complex programme of transformation

Simon Slater

Please contact Simon Slater on (0) 7786 903 530 or simon.slater@intelligentofficeuk.com