Merger & Acquisition
History has tough us that two-thirds of mergers and acquisitions fail to meets its expected targets and goals.
The Client Change Rationale
The CEO wants to carry out a merger & acquisition feasibility study taking into consideration the profitability and economical affect on; brand portfolio management, sales and services systems, distribution management and warehouse management. This includes revealing the cost savings and benefits through synergies and efficiency changes, headcount balance, new country infrastructure design, required capital investments and designing and development of the merger transformation task and time plan.
A new category of products offer can bring superior value added. The new brands can be a door opener into new service channels and markets. At the same time a minor incremental cost is being added to current systems.
Content Vision
Buying a company in the same or similar business can be a smart strategic move, if done proactively. Experience has shown that the perfect filling of brand gaps is essential and the key to being successful. Clear simple rules need to be in place, devised by who is taking over! The buyer tries to create as many cost synergies as possible when merging the two companies. We need to bear in mind that we are not generally just merging the companies as such; we are merging the brands and sometimes two company cultures. When companies are merged, experience has shown that the transformation can entail a risk of revenue shortfall – because when two very competitive brands are merged, without the proper planning, often only one brand will sustain its values. The projected savings through synergies will not always become visible as planned. A merger of two company cultures can be complex and require detailed planning and understanding.
Our Work
Carry out a merger & acquisition feasibility study taking into consideration the profitability, economical affect and risks regarding brand portfolio management, sales and services systems, distribution management and warehouse management. This includes revealing the cost savings and benefits through synergies and efficiency changes, headcount balance, new country infrastructure design, required capital investments and designing and development of the merger transformation task and time plan. Furthermore, design and develop a Master Plan containing; communication plan, design and develop look-of-success standards and transformation and merger plan.
TPC-Consulting Core Modules and Content
- Feasibility study
- Brand portfolio management
- Technical preparation
- How to go to market
- Look-of-success
- Infrastructure planning
- Rerouting and reorganization
- Training programs
- Transformation Plan
- Measure and monitor key business performances
Results
The company initially was bought and it was recommended by TPC-Consulting and determined by the Client to withdraw the merger and operate with two separate entities. The risk and complexity were considered to high when evaluated against the financial benefits.