Integration and synergies - comprehensive, implementation-driven, value-orientated

The integration of a company acquisition presents management with key challenges:

How do I implement the rationale and strategic objectives of the acquisition in the integration process?

All integration measures must be consistently aligned with the strategic objectives of the acquisition. The joint operating model required for this, including the organisational structure and appropriate management system, ultimately determines the depth of integration and therefore the necessary integration measures and initiatives. The key points of the IT integration are also derived from this.

How do I realise the value potential of the acquisition?

The expected value potential of the company acquisition, which is often priced into the purchase price and paid for, at least in part, as expected synergies, must be realised. Identifying and realising synergies and securing them through suitable technological measures place high demands on planning and implementation.

How do I ensure that I have full control over the acquired company from day 1 and that business operations continue undisturbed in my favour?

In the time frame of the transfer of ownership (day 1), it is essential to ensure control and operational continuity. At the same time, the immediate ability to control the target company must be guaranteed.

What regulatory requirements apply after the merger and how do I address them?

Regulatory requirements apply after the business combination for both acquiring companies and acquired companies. New or amended requirements must be identified and fulfilled, as well as the buyer's own minimum standards. Areas to be addressed include compliance, governance, reporting, cybersecurity, tax CMS and IT identity and access management.

How do I take employees„along“ and utilise the momentum for change?

Employees on both sides must be taken along“ or involved. Maintaining key competences, designing a consistent communication strategy and change management as well as taking corporate cultures and remuneration models into account are important for successful and sustainable integration.

Our approach to the successful integration of a company acquisition addresses the challenge through defined fields of work:

Integration concept: setting the course

In order to consistently align the integration with the strategic rationale of the acquisition, we translate the specific strategic thrusts into a viable concept. This also takes into account the size of the companies involved, as well as the geographical footprint, cultural differences and the organisational and functional setup.

In the integration concept, the future target operating model is defined and the necessary transformation steps are worked out. The target model essentially comprises organisation & control, processes and personnel, assets, contract and IP issues as well as applications & IT along the relevant functions of the company.

The concept is introduced by defined, overarching integration principles. The type and scope of the integration measures determine the depth and focus of integration.

The importance of IT integration as a cross-sectional task should be emphasised, as IT systems structure business processes and enable operational control. IT integration is therefore accompanied by an embedded team of experts. This ensures that the requirements for security, access rights and licence management are met and that the designed integration is also secure and feasible from an IT perspective.

The central decisions summarised in the integration concept together form the basis for targeted implementation in line with the strategy and the realisation of the targeted value potential.

Realising value potential

The realisation of value begins with the systematic and hypothesis-based identification of levers for synergies and performance potential. For the acquirer, this is fraught with uncertainty for a long time. Only after closing can the corresponding potentials be fully validated, including technological validation. Our structured approach enables the step-by-step approach, validation and implementation as well as consistent tracking right through to reporting. Tried and tested methods as well as proven standards and tools support the work and coordinate the various parties involved. This ensures transparency and acceptance throughout the process.

Taking control

Our activities relating to the assumption of control focus on the period around day 1. The aim is to exercise effective control over the acquired company from day 1 and to ensure clear decision-making channels, as well as governance structures and control mechanisms, even during the transition. Detailed checklists and activity plans tailored to the situation are used for this purpose. Other tried-and-tested standards and tools help to create transparency regarding decision-making processes and lay the foundation for coordinated employee communication.

In addition to taking control of the target company, our work also includes maintaining a clear view of the absorbing organisation and the integration project itself.

Taking employees with you

The high willingness to change and the momentum around day 1 can be used to implement the integration or transformation plan and redesign the organisation.

The success factors for accompanying the change are communication and change management. We plan both comprehensively and develop appropriate content in line with existing standards and tried-and-tested activities. This also includes experience with effective communication channels, content and sensible schedules. Employee retention, culture, remuneration and benefits are the other fields that are dealt with in a structured manner.

Comply with regulatory requirements

Our experts develop the profile of requirements after the acquisition. They primarily address the areas of compliance, reporting and regulation. These include the preparation and quality assurance of opening balance sheets, GAAP conversions and the harmonisation of accounting and reporting structures. Tax obligations - for example in the areas of transfer pricing, tax compliance or audit issues - are also addressed in a structured manner.

We also work out how internal standards and minimum requirements can be sensibly rolled out. This includes existing treasury, controlling and group-wide management models for financial transparency and planning security. For example, the connection to existing governance, risk and compliance systems is also addressed, taking into account legal requirements such as GDPR, LkSG or CSRD.

Structured process models, checklists and a multidisciplinary setup facilitate implementation and ensure a smooth transition.

Before signing, it makes sense to think through the aforementioned steps from a due diligence perspective and to think through key questions in advance.