5
Sign-to-close: Accelerating value creation in the most challenging phase of complex mergers
PROACTIVELY ADDRESSING COMPETITION
CONCERNS WITH REGULATORY BODIES
A topic we will explore further in a follow-up article is the idea of taking a proactive
approach to engagement in the merger control process. Management teams should
ensure that when they are subject to regulatory scrutiny, proactive rather than reactive
engagement with competition authorities should be made to fully address concerns (either
in terms of gathering the required data to confirm the absence of concerns, or coming
up with worked through remedies) and mitigate the risk of allowing uncertainty to drive
lengthier and more complex regulatory reviews.
5.
LEVERAGING THE LIMBO
Taking this approach, AlixPartners has developed tools and
approaches that better leverage the period prior to regulatory
close as a critical part of the integration lifecycle. Taking a
proactive approach enables businesses to move more rapidly
away from the disruption of integration post-close and focus
management teams on growth and value generation.
Leveraging the limbo not only effectively minimizes risks
but also enables businesses to hit the ground running postclose.
Our extensive experience in supporting clients through
the sign-to-close period has helped identify barriers and
has significantly accelerated value creation. By redefining
traditional thinking and by challenging the status quo, we can
navigate the complexities of the regulatory clearance phase,
ensuring that value creation doesn't begin at Day One but is
instead an integral part of the earlier M&A journey.
SETTING UP AN ACTIVE INTEGRATION
MANAGEMENT OFFICE (IMO), A GOVERNANCE
MODEL, AND AN OPERATING CADENCE
Effective governance is a critical aspect of the integration process. Effective governance
oversees the establishment of a decision-making framework, integrates governance
structure, and defines roles and responsibilities to ensure accountability, efficient
decision-making, executional clarity to de-risking integration, and synergy delivery-as
integration progresses.
A key aspect of this process is stakeholder management, where change management,
communication plans, and strategies are created to address concerns, maintain trust,
and develop engagement initiatives that ensure a smooth transition and minimize
resistance or uncertainties during both pre-close and post-close phases. This integration
planning and preparation process relies heavily on cross-functional coordination, with the
Integration Management Office (IMO) acting as a central hub to ensure that all relevant
stakeholders are involved in planning.
6.
Al Hamood, president and chief financial and
administrative officer of Culligan, a $2.5-billion
global service provider of clean and sustainable
drinking water solutions, said, "We worked with
AlixPartners through a highly complex regulatory
period during our acquisition of Waterlogic
Group in 2022. Their rigorous approach to
working with both parties immediately post
signing and through to close enabled our teams
to develop a highly robust business case-with
buy-in from all stakeholders-that ultimately
helped us accelerate the delivery of our deal
thesis post-close."