InitiationPlanning/FinalizationShort-Term ImplementationLong-Term Management Phase I Strategic Acquisition Plan Based on Industry Trends, Business Mission and Values, and Strategic Skills Phase II Initial Strategic Evaluation of Candidates Establish Strategic Fit and Financial Feasibility Phase III Initial Due Diligence Financial, Business and Market Due Diligence Valuation of Entity Phase IV Due Diligence and Planning Comprehensive Due Diligence Establish Merger Team Phase V Finalize Purchase/Sale Agreement Develop Clear Rationale for Acquisition and Prepare Message to be Communicated Phase VII Short-Term Business Planning Portfolio-Level Org. Design Get Business Up and Running Create a Strong Foundation Phase VIII Business Planning and Organization Design Formulate Business Strategies Align Organizational Structure Phase VI Communication and Announcement Manage Impact: Establish Model for Communication Phase IX Organizational Development Develop Organization and Management Team Pitfalls: Lack of strategic clarity or required resources Pitfalls: Failure to identify obstacles to achieving true synergies Pitfalls: Failure to address non- negotiables; making promises or establishing expectations you may not be able to fulfill Pitfalls: Varying expectations (internally or externally) due to lack of communication; not involving right/enough people Pitfalls: Making long-term decisions that may later need to be revisited; arrogant “acquirer syndrome” Pitfalls: Inability to define desired culture; not incorporating learnings for future acquisitions; not reinforcing desired behaviours Pitfalls: Failure to let structural nature of integration drive organizational decisions; loss of best practices Pitfalls: Failure to control message and timing of information; failure to Involve key managers Pitfalls: Misidentification of type of integration; under -emphasis on non-financial due diligence and planning; over/under-estimating value of synergies Desirable Candidate or Candidates Letter of Intent Close the Deal Refine Integration Process Aligned Expectations for Integration Desired Culture Aligned Organization Aligned Performance Management System

InitiationPlanning/FinalizationShort-Term ImplementationLong-Term Management Phase I Strategic Acquisition Plan Based on Industry Trends, Business Mission and Values, and Strategic Skills Phase II Initial Strategic Evaluation of Candidates Establish Strategic Fit and Financial Feasibility Phase III Initial Due Diligence Financial, Business and Market Due Diligence Valuation of Entity Phase IV Due Diligence and Planning Comprehensive Due Diligence Establish Merger Team Phase V Finalize Purchase/Sale Agreement Develop Clear Rationale for Acquisition and Prepare Message to be Communicated Phase VII Short-Term Business Planning Portfolio-Level Org. Design Get Business Up and Running Create a Strong Foundation Phase VIII Business Planning and Organization Design Formulate Business Strategies Align Organizational Structure Phase VI Communication and Announcement Manage Impact Pitfalls: Lack of strategic clarity or required resources Pitfalls: Failure to identify obstacles to achieving true synergies Pitfalls: Failure to address non- negotiables; making promises or establishing expectations you may not be able to fulfill Pitfalls: Varying expectations (internally or externally) due to lack of communication; not involving right/enough people Pitfalls: Making long-term decisions that may later need to be revisited; arrogant “acquirer syndrome” Pitfalls: Inability to define de- sired culture; not incor- porating learnings for future acquisitions; not reinforcing desired behaviors Pitfalls: Failure to let structural nature of integration drive organizational decisions; loss of best practices Pitfalls: Failure to control message and timing of information; failure to Involve key managers Pitfalls: Misidentification of type of integration; under -emphasis on non-financial due diligence and planning; over/under-estimating value of synergies Desirable Candidate or Candidates Letter of Intent Close the Deal Measure and Refine Integration Process Aligned Expectations for Integration Desired Culture & Competencies Employee Value Proposition Aligned Performance Management System Identify Top Talent Identify Cultural Issues Retain Customers Re-enroll Talent Talent Deployment Establish Communication Plan Create Employee Proposition Develop Communication Skills Ensure Understanding of Change Process Phase IX Organizational Development Develop Organization and Management Team and Reconstitute Teams Form Business/ People Strategies Align HR Systems