Merger Integration & Growth Initiatives

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).