Project Management in PMI & Carve-out

Active project management is the key to success in M&A

My Focus Theme: Operative PMI Management

I create value for my clients because my assignment prevents delays in integration and synergies delivery.

Hence, I support Management in choosing the right integration subjects (integration depth, “selective integration”), in defining the to-be state, performing a fit/gap analysis and in identification of the appropriate measures. I organize and lead the PMO, gather the right people in workstreams, agree milestones and action plans, manage the project, implement initiatives and check results together with the team and report progress, successes and risks to Senior Management.

Carve-out

In principle, a Carve-out is a reverse integration: Instead of amalgamating several organizations into one, in a carve-out scenario one organization is split into two. The core subjects are largely identical: Employee structure, systems, processes from Finance to Supply Chain, but include legal topics, too (e.g. technology, intellectual property, environmental legacy, litigation).

Implementation Track Record

My experience from various (international) PMI and Carve-out-projects ensures the right level of process safety in your process.

Acquisition Goals & PMI Management

No enterprise or business is being acquired without persuing specific goals* with the acquisition. Often, Management realizes quickly post acquisition that the committed goals cannot be achieved, or at least not be achieved within the set timeline. KPMG concluded in their M&A Study that 83% of all M&A deals do not increase Shareholder Value. A buy-and-build strategy comprises – besides the mere portfolio extension – a “build”-element, too: the (post-merger) integration aspect which determines the new sum of all parts.

*Most common acquisition goals include access to markets or technology, synergy effects in sales organization, or cost reduction through economies of scale.

Goal achievement post acquisition is no easy sledding

PMI Management Increases ROI

Structured PMI (post-merger integration) management increases the probability of attaining any acquisition goals considerably – in particular if the acquisition objectives have been determined during the due diligence phase already (a fact proven in the same KPMG study.) An continuous process from due diligence to integration will increase the success rate further. Once the M&A consultant has off-boarded, the real work commences: “Post-deal” is more than financing, GAAP conversion and PPA; effective integration requires stringent management and stakeholder involvement. In fact, KPMG found that companies mainly focusing on legal and financing matters were 15% less likely to have a successful deal.

PMI Subjects

Commonly, core integration subjects include HR (retention, harmonization), business systems (standardization and consistency), finance & controlling (GAAP conversion, reporting, synergies), business process optimization, footprint management, cultural fit, and internal/external stakeholder management.