1. Charter Examples
Charter
Objectives (Primary integration objectives to be achieved post close)
Scope (Primary categories, systems, processes corporate or functional areas to be addressed in team’s plan)
Inputs:
Newco business objectives, planning assumptions (“givens”)
Accountable SMT member direction
Focus Areas:
Org restructuring timing
Specific business & functional integration objectives (examples: facility rationalizations, system conversions, policy & process related objectives, communication requirements, etc.)
Synergy targets: Team objectives for overhead and operational (these will be added once targets & timing are confirmed)
Inputs:
Newco objectives, planning assumptions (“givens”)
Accountable SMT member direction
Focus Areas:
Make sure all people/locations are accounted for
Confirm anything out of integration scope (i.e. not being integrated in year 1)
Goal of this exercise is to identify duplications and “orphans” “

2. Charter Examples: Finance
Objectives
(Primary integration objectives to be achieved post close)
Scope
(Primary categories, systems, processes corporate or functional areas to be addressed in team’s plan)
Implement optimal finance organization structure by end of year 1
Accounting operations, Financial Reporting, Investor Relations, Corporate Planning, Tax, Treasury, Bus Dev, Timberland and Wood Products Finance (in conjunction with operating sectors)
Meet synergy targets by end of year 1
Finance organization and financial system consolidation
Seamless day 1 financial operations (pay employees, vendors, collect cash, combined financial reporting)
GL, AP, AR, HR/PR, Log Settlement, MFG ERP, Treasury Operations, Tax Structure Finance assumption: HR leads Initiatives related to payment of employees Day 1
Financial system migration/consolidation during year 1
Determine optimal financial systems platform and target systems consolidation/transfer onto common platform by end of year 1
Consolidate and/or restructure debt and comply with covenants
SDT , Farm Credit debt, optimal combined debt structure
Consolidate tax entities and comply with REIT requirements
XX and YY legal entities
Implement Investor Relations program to consider combined large cap investor opportunity/requirements
Segment reporting, first year IR program, 1Q and First year 2016 combined budgeting, forecasting and guidance “

3. Charter Examples: Finance
Day 1 Mandatories
(Critical information and/or assessment activities that must be completed pre-close)
Retain key employees
Put retention incentive in place
Pay employees and vendors
Support HR benefit/pay changes and configuration of HR/PR system
Collect cash from customers
Maintain lockboxes and remittance process
Comply with treasury requirements
Debt consolidation plan
Comply with tax requirements
-Legal entity consolidation plan
-REIT compliance plan and process modifications
-2016 stub period distribution planning
Close the books and report internally and externally
-Determine level of consolidation
-Conform accounting conventions
-Implement reporting solution across multiple GLs/Systems
Combined budget and forecasting process for post day 1
Plan for combined budget consolidation and forecasting process
Investor communication and guidance
Conclude on segments, combined 1Q and year guidance, IR plan “
Issues/Risks
Cross-Team Dependencies
XX employee day 1 benefits not configured in Target HR/PR
HR / IT
Financial system consolidation does not occur in time to capture synergies
HR /IT / Biz units
Organization consolidation does not occur in time to capture synergies
HR / IT / Biz Units
Management reporting and forecasting across two financial systems not effective
IT / Biz units
Gap in insurance coverages
Treasury / Risk Management