Topic 98
Do the Audits of the Integration and Deal Value Creation Plan
The integration plan and the value creation plan should be subjected to postclosing audits to determine progress toward successful achievement of the investment made and to determine what the organization can learn to enhance the deal-making capabilities of the acquirer in the future.
AUDIT THE INTEGRATION PLAN: ARE YOU GETTING THERE?
- Hold regular check-point meetings to manage the integration plan closely.
- Persons from the integration team responsible for each integration plan element should report:
- Element status versus plan
- Gaps and issues
- Gap closure plans
- Revised timetables and goals
- Identify human resource, organizational, and culture clash issues, and make people adjustments as early as possible.
- See Topic 52.
AUDIT THE DEAL VALUE CREATION: WHAT DID YOU LEARN?
- Annually, at least, review the deal's actual value creation versus the integration and synergy value creation plan (see Topic 51).
- Compare key plan assumptions, as captured in the deal bible, including:
- Market size and growth rates
- Target customer development
- Competitive responses and conditions
- Served market shares
- Served market development
- New product development
- Product pricing levels and gross margins
- Key financial performance metrics
- Key operating performance metrics
- Compare plan versus actual cumulative economic value added (EVA) to date and isolate causes of material differences.
- Compare actual cumulative total shareholder return ...
