Merging: What Should We Expect

What Should We Expect? The Acquisition Process: The Business Transaction Transaction Timeline C L O S E Due Diligence Operational Integration Reconciliation Planning Negotiate price/terms Arrange funding Announce intentions Conduct due diligence Begin regulatory approval Define integration planning structure and process Select integration manager Define/determine impact of policies & procedures on planning Collect and prepare data Keep the business running Take care of customers Retain key talent Communicate with workforce Launch planning teams Identify synergies Develop integration plans Get regulatory approval Hold shareholder votes Design future state org. Select top leadership team Prepare for Day 1 Analyze customer impact Design “early wins” Communicate with workforce Align benefits & compensation Align HR practice policies Conduct Day 1 Activities Staff the remainder of the organization Clarify roles and responsibilities Execute 100 Day Plan Deliver “early wins” Harmonize benefits, compensation, policies, and procedures Combine operations Align performance management systems Capture synergies Integrate cultures Optimize the combined business Deliver on the promise

What Should We Expect? Psychological Shockwaves Until there is a new future to hold onto, expect: Fear/sense of loss An increase in uncertainty and ambiguity Weakened trust level More self-preservation For some, excitement and opportunity

Four Common Causes of Employee Frustrations Slow speed of integration Lack of clarity in power structure Bad communication Overhype from senior management

What Should We Expect? The Growing Pains Predictable problems: Communication deteriorates Productivity drops and momentum slows Team play suffers Power struggles throw work into disarray Commitment is lost

What Should We Expect? The Acquisition Process: Business Transaction / People Transition Transaction Timeline C L O S E Due Diligence Operational Integration Reconciliation Planning Business Transaction People experience a roller coaster of emotions through all phases of the business transaction. Human Transition – reality