Post-Closing Integration Issues in M&A: Developing and Implementing a Plan

Description

Closing an M&A deal is just the beginning. The majority of acquisitions fail to meet pre-deal expectations. The acquirer will generally want to integrate the two businesses to cut costs and generate value for its shareholders. Bringing together businesses with different contractual relationships, histories, and cultures inevitably poses substantial challenges.

Management may need guidance in navigating critical issues to achieve its business goals: What are the group's plans for employee transfers and workforce reductions? What are the principal legal regulatory operational and IT constraints on moving assets, entities, and people? What are the timing and sequencing priorities? Which constituencies/functions need to be involved in the initial planning process, and how will any competing priorities between them be navigated? How will compliance risks be identified and addressed?

Deal counsel may need to determine each entity's assets (tangible and intangible), the number and identity of entity employees, and the existence of labor agreements or pension liabilities. Counsel may also need to identify contracts to re-negotiate or assign, licenses and permits, ongoing litigation or compliance issues, and tax attributes to preserve integration where possible.

Listen as our authoritative panel explores these and other issues which must be addressed in integrating merged or acquired companies post-closing.