Farrell Advisory ensures the right activities take place at the right times. Farrell Advisory provides a disciplined and fast-paced approach to the integration and growth initiatives to improve shareholder returns by making use of disciplined and prioritized planning; delivering a well-coordinated launch; and keeping a relentless focus on the key value drivers behind the deal.
Alignment of Strategies, Structure and Integration Plans. Design of Organization (structure of multiple business units, management structure and equity/debt structure and revised budget), Operating (integration teams, allocation of responsibilities, new leadership team and incentive/retention plans) and Reporting models with effective corporate governance and tax strategy.
To quickly boost profitability, streamline operations and maximize returns, evaluate all aspects of a business to determine the appropriateness of cost allotted to each area and the ROI of each expense decision for the company. We recommend a ‘zero’ based budgeting approach to costs, customers/ products, locations and procedures/ tasks.
Deep insights in the operational and financial reporting and forecasting process is fundamental to a successful integration and ongoing business. Accurate and cleaned up data, active and near real-time communication of key performance indicators via dashboards is necessary to make informed course-corrections to strengthen and enhance strategies and actions.
Managing and regular communication with energy of “right first time” changes in vision, culture, structure and goals and then performance against goals are fundamental to success and trust which bonds employees to organizations. Changes and perceived uncertainties will be quickly judged and rebelled against via irrational actions if deemed poor leading to loss of employees and customers. Stakeholders expect change post acquisition and it is always best practice to make change quickly, efficiently and in a transparent manner while seeking constant feedback.
Integration should encompass an honest and intense appraisal of the best operating processes (e.g., Operations/Production, Business development, marketing, purchasing, HR (including employee welfare, remuneration, benefits, assessment and training), finance, IT, e-mail, intranets and accompany policies and producers) and value delivery culture. Improvements have to be institutionalized quickly, sometimes via executive coaching, while still maintaining uniqueness qualities.
Cash management should become a core competency and managed by a specialist; this goes beyond the 13-week cash flow forecasting. Orderly ordering, spend and standardization of accounts payable; careful management of inventory; and improving accounts receivable for cash collection opportunities culture should be careful monitored by KPI’s and incentivized by realignment of management incentives (e.g., salesmen for cash collections rather than on orders).
Merger integration of acquired European portable cold store rental business
Merger integration of distressed technical training business
Assessment of merger integration of an Australian financial software business
Integration review of $150M energy cleaning service company
Improvement of reporting of pipe manufacturer with $375M of revenue
Disclaimer Note: Certain transactions listed above were effective by principals of Farrell Advisory prior to the date they joined the firm