Mergers and Acquisitions

Business Problem:

A consumer software publishing company identified an opportunity in the enterprise security market and wanted to grow rapidly through acquisitions.

Challenges:

1. Company had a single security product that was sold primarily to the consumer market
2. Organization had limited experience in doing M&A integration work
3. Company acquired a company 50% of their own size.  In addition, the acquired company was comprised of several independent businesses which themselves were not integrated  

Results:

Company completed 28 acquisitions and became the #1 enterprise security vendor in the world.

Improvement Process:

1. Developed comprehensive methodology to evaluate potential M&A targets and complete IT integration work within 90 days and achieve 50% reduction in IT costs of acquired company
2. Established “M&A Dream Team” to lead IT integration work and transitioned acquired company to new systems 
3. Developed metrics program to track key indicators of integration project which allowed executives to monitor and course correct quickly and effectively   

Business Problem:

Financial services organization was unable to grow their business organically and therefore needed to expand their business through acquisition.

Challenges:

1. Organization had no previous acquisition experience and chose to acquire a company that was very similar in size
2. Many long-term employees at the company were not accustomed to change
3. Company had very conservative business practices and was adverse to risk

Results:

Company moved from the 8th largest financial institution in the U.S. to the 4th and continued their strategy to drive company growth through acquisition.

Improvement Process:

1. Developed ‘Tiger Team’ strategy to select a small team of in-house experts that would lead the IT integration efforts and minimize use of outside consultants
2. Implemented Integration Governance Process to oversee integration efforts and ensure that project achieved time, budget, and scope objectives
3. Developed repeatable processes that formed basis of company’s future acquisition methodology

Business Problem:

Largest enterprise software acquisition was not well received by investors or customers and there was tremendous pressure on IT organization to integrate companies quickly.

Challenges:

1. Enterprise software organization acquires company of equal size and dramatically different culture
2. Lengthy regulatory approval process and limited ability to share information or direct acquired company
3.  Major EPR upgrade underway and both companies under first SOX certification process

Results:

From Day 1 results for combined company included the following:

1. Single web presence and phone numbers for customer contacts
2. All employees on integrated e-mail and phone system
3. Integrated financials and sales reporting

Improvement Process:

1. Focused on staffing first and defined the organization structure in less than 90 days after deal was announced and implemented on Day 1 of combined company
2. Developed a single project management methodology and implemented a unified Program Management Office to manage IT integration efforts
3. Established Executive Steering Committee to oversee IT integration efforts and resolve issues

Download the full overview of our Mergers and Acquisitions program.