How do you integrate acquired operations into your organization?
As exciting as it is to acquire a new company — whether purely as an investment or as a way to expand your existing business — every new acquisition presents new risks. With the high level of scrutiny placed on the transaction and the valuation, many companies can be caught unaware when the process integration risks turn the deal of a century into a mass of headaches and lost opportunity.
Furthermore, over the past few years there has been increased scrutiny by investors on whether the value proposed in the acquisition materializes in the consolidated company. The SEC has even issued an updated rule to improve disclosures for business acquisitions that now allows businesses to disclose forecasted synergies for the consolidated company which will be effective January 1, 2021 for calendar year filers (voluntary adoption is allowed). Although this provides a great avenue to communicate the benefits of an acquisition to the market, it also increases long-term scrutiny on the actualization of those synergies as management must both include any material assumptions or uncertainties for each adjustment and reconcile the adjustments to the pro forma financial information.
With all the diligence related to the acquisition transaction itself, the functional post-acquisition integration process can often go overlooked. Having a resource to monitor and manage the integration so that the organization continues to move toward the end-goal, or to help navigate when changes are necessary is a critical component to ensure an effective transition. That’s where Weaver comes in.
We bring a broad range of experience to help define not just integration plans, but controls and governance structures to provide insight to how the integration is progressing while highlighting issues before they impact the bottom line. Our methodology considers the people, processes and technology that is critical to achieving the desired end state while simultaneously ensuring that there are appropriate governing procedures to manage the changing organization.
