Building Competency in a Merger or Acquisition-Part 4: Execution/Integration-The Final Step in the M & A Process
Mergers & Acquisitions (M&A) StrategyAuthors note: The activities that lead to the identification and ultimate execution of an opportunity are very intertwined and subject to continuous learning and improvement. With that in mind, I will summarize four main activities in the M&A (mergers and acquisitions) Process Lifecycle over the course of four different articles as follows:
After the lead up to a Merger or Acquisition (as discussed in parts 1, 2 and 3 of this series of articles), work still remains to be done. In fact, the execution and integration of a Merger and Acquisition effort is perhaps the most crucial part of the process. If properly executed, it allows both companies to pursue both their own and their shared business objectives with few operational interruptions.
Mergers and Acquisitions (M&A) execution (or "integration") represents the most critical, complex facet of a successful acquisition program. Its the process where business models, systems, people and cultures blend in pursuit of a new set of opportunities.
It must be orchestrated with precision and intensity, while still allowing the integrated entities to execute on their existing and new business objectives. Even more attention and focus should be placed on this aspect of M&A than the others weve already discussed, given the amount of capital and other resources that will be expended.
Success in integration requires, under the leadership of the transaction's main sponsor, early participation of the individuals that will oversee the integration of customer opportunities, people, products/technologies and operations.
Early formation of the integration team allows for much of the integration analysis to take place during the due-diligence phase of the transaction process.
During this phase, and prior to final negotiations, integration teams can determine and organize around the detailed success factors that support the major objectives of an acquisition or investment. As a result, the teams can develop an integration plan with a better understanding of deal-specific issues, structured in such a way as to maximize the probability of success.
About the author
Elias Mendoza, Managing Director of Investment Development and Strategy
Mr. Mendoza joined Siris Capital in 2013. Mr. Mendoza's responsibilities at Siris include identifying and evaluating trends within existing and potential industry verticals for investment opportunities, and assisting our Executive Partners in evaluating underlying business strategies of targeted companies and existing portfolio companies. Prior to joining Siris, Mr. Mendoza was a Partner at Union Square Advisors, where he served as its Chief Operating Officer and a senior banker across the firm's verticals. Through July 2011, Mr. Mendoza held various senior positions at IBM, including Vice President and Global Head of Corporate Development. In such capacity, he was responsible for identifying , executing and integrating all acquisitions, investments and divestitures for the company on a worldwide basis. Mr. Mendoza's previous experience includes over twelve years spent at Morgan Stanley & Co., most recently as an Executive Director in the Investment Banking Division. Mr. Mendoza received a Landegger Program Certificate in International Business Diplomacy and an MBA from Georgetown University. He received his AB from Princeton University.