Sign-to-close: Accelerating value creation in the most challenging phase of complex mergers
MAKING EARLY DECISIONS ON OPERATING
MODEL GUARDRAILS
Aligning the combined leadership around the overarching operating model principles in line
with the deal thesis provides teams with the necessary guardrails in which to think about
synergy value creation. Leaving these higher-level concepts open or unresolved limits the
ability of the team to think conceptually about how to plan for and design a more detailed
future state organization and operational structure.
2.
ALIGNING FINANCE AND HUMAN RESOURCES IN
THE PLANNING PROCESS
In a clean team environment, the primary limiting factor is the inability of respective
parties to see detailed and sensitive information across clean team walls. However, an
effective third-party clean team should work closely with the respective finance and
HR organizations of both sides to clearly align on three things: the respective baseline
information used, the basis and methodology of synergy business cases, and the method
by which successful implementation will be tracked and measured.
Establishing this tightly aligned ownership early on drives engagement and ownership, derisks
timely and in-full synergy plan delivery and minimizes the need for iterative reviews
and/or baseline adjustments post-close.
3.
ENGAGING TALENT AND COMMUNICATING
TRANSPARENTLY TO ELIMINATE INTERNAL FEARS
It is important to recognize key talent early and build clear communication and retention
strategies to proactively address concerns. During periods of uncertainty and in an
environment where decisions at the individual level can be prohibited, it's crucial to avoid
the unpredictability of a prolonged clearance process that can ultimately lead to fear,
uncertainty, and loss of key talent.
Proactive communication strategies, clear messaging about the timing of future decisions
(if not communication of the decisions themselves), and the use of retention techniques can
prevent disengagement, minimize uncertainty and anxiety, and ensure key talent is engaged
in the planning process, all of which should serve to ensure a smooth Day One and seamless
day-to-day delivery of the business objectives post-close.
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