Integration Scope

Integrate or Duct-Tape?

Business Model Premise	Integration Needs
Economies of Scale	Squeeze costs from system Leverage sales Increase productivity Enable resource use Minimize SGandA
National Accounts	Sell once; produce many Enable cross-selling Ease transfer pricing Deliver predictable service site-to-site
Brand Management	Build and deliver predictable quality Control image Standardize quality Standardize selling and production processes

Integration Services Directory

• Determine integration scope
• Craft 100-day plan
• Develop best-practices program
• Plan management succession
• Longer-term integration activities
• Provide training

Integration Scope

• Initiate Executive Leadership Team
• Establish guiding principles
• Charter due-diligence team to fully qualify acquisition candidates
• Charter integration team to develop and execute the integration plans

Executive Leadership Team Key Roles
Typically formed from CEOs and one or two senior corporate staff

• Develop guiding principles
• Approve major integration activities
• Find and confirm acquisition targets
• Communicate merger status to stakeholders

Issues for Guiding Principles
Aim: Set overall integration objectives, consistent with the business concept of the acquisition or consolidation

• Set and publish goals of integration
• Identify degree of integration for platform, satellite, and tuck-in acquisitions
• Establish cost parameters for integration activities

Integration Team Key Roles
Aim: Empower a small, fast team from the next level to the Executive Leadership Team, allowing executives to focus on acquisition activities

• Establish planning, budgeting, and reporting mechanisms
• Evaluate completion of all planned events
• Act as focal point for decision making
• Provide senior corporate reviews
• Provide staff support
• Approve use of consultants