1. Merging: What Should We Expect

2. 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

3. 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

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

5. 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

6. 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