Merger and Acquisition Integration
In a recent study by Spencer
Stuart the rate of successful integration and
the realization of expected return for most mergers
and acquisitions was only 17%. The key drivers
of this poor value attainment have historically
been, and remain, a failure to understand the
critical cultural, business acumen, and investment
alignment issues that drive successful integration
of operational AND strategic business practices.
Mergers and acquisitions are
complex transactions, both financially and organizationally.
Requiring enormous due diligence, complex negotiations,
and significant capital there is tremendous risk.
Typically in acquisitions parties seek to evaluate
market alignment, strategic fit, and proper valuation.
At The Walton Group, we believe
that there is another more critical component,
Business Acumen, that has a more comprehensive
impact on the success of a transaction than any
other component. The abilty to measure
the alignment of an organizations propensity to
consume resources and create long term value effectively
manages the most critical risk areas from a transaction
and ensures that the desired value creation continues
long after initial consolidation efficiencies
have been realized.
Level 2 Certified
in the use of the groundbreaking Perth
Leadership Outcome Model™ we are
able to provide predictive assessment and integration
consulting that begins before the transaction
and informs the critical post merger decision
processes. In addition, through the use of the
Birkman Method we can provide
critical guidance in the retention and best placement
of key leadership resources during the M&A
process.
Benefits of the Perth
Leadership Outcome Model™
- Understand the true valuation "trajectory"
of the company
- Evaluate the match between the identified
valuation outcome of the company and the leadership
of the organization
- Identify mismatches between key team members
and probable financial outcomes
- Increase company valuation through the realignment
of non-value creating activities
- Optimize the utilization of resources to maximize
value creation
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