ENTERPRISE INTEGRATION FRAMEWORK
Full of opportunity and risk, strategic acquisitions are required to fuel many companies’ growth objectives. Yet multiple studies have shown that only 30% of major acquisitions create value for the shareholders of the acquirer. So how does a company increase the odds for success of such major transactions? AGSI’s Enterprise Integration Framework focuses on the entire lifecycle of Mergers and Acquisitions.
The Challenges
The Strategic Intent of an Acquisition helps companies focus on areas that are critical to success. Is the objective to access new sales channels, or capture specific products or intellectual property? Is there a need to increase the talent base in the organization? Or unfreeze opportunities? Too often, companies will get caught up in the acquisition and bidding process, and lose sight of the original value proposition.
Once closed, why do promising deals fail to achieve the projected benefits? Common root causes of failed or challenged deals:
- Ignored potential integration issues
- Overestimated synergies
- Problems integrating management teams
- Due diligence failed to highlight key issues
- Insufficient strategic fit
Our Framework and Benefits
AGSI has processes and playbooks for conducting assessments and due diligence pre-close. During this phase, acquisition teams evaluate risks, issues, and opportunities. Post-close, AGSI’s focus is on Enterprise Integration – including products, processes, people, and technology – guided by the strategic intent of the acquisition. Our approach is built upon leading standards, facts, and experience – not upon conjecture. The bottom line benefits are accelerating value realization for the new organization.
