Integration strategy and execution excellence to ensure you realize the full value potential and grow profitably through M&As
Each and every M&A deal happens because the parties have identified potential value in the transaction and are confident of realizing that value into profitability or growth. However, as many as 70% of M&A transactions fail to achieve strategic, operational and financial success. This failure is rarely due to a flawed strategy, and most often a result of not executing the strategy as planned. It is important to proactively analyze the integrated vision, culture, governance and value to increase the odds of a successful deal.
Valorant works with you through the integration lifecycle to not just manage it, but to help you ensure that the deal value is realized. Our deep industry and domain knowledge, digital-first agile approach and collaborative methodology enables us to overcome all challenges and increase deal efficiency. Whether it is day 1 readiness or 100 day, 6 months of 1-Year goals, our disciplined, consistent approach will help you keep on track for a smooth integration.
It is critical to convert the integration strategy into detailed actions and then managing those actions across the combined entity. To succeed, it is imperative to establish communication channels and a governance structure that aligns people, process and technology with the objectives of the deal. That is where an Integration Management Office (IMO) comes into the picture.
An IMO is central to the overall integration effort. Every IMO is unique due to differing deal objectives, organization structure and business units. Our M&A focused consultants have created custom IMO for a variety of transactions across different sectors. We apply consistent methodologies across the different facets of the integration to ensure the right activities happen at the right time, so that, the integration stays on course.
Our integration methodology emphasizes the importance of getting all parts of the IMO in place as soon as possible to avoid disruptions and hasten synergy realization. Below we have summarized our integration management framework;
Integration Management Framework
Valorant leverages our supply chain and procurement expertise to help clients identify and realize operational efficiencies from M&A transactions. Procurement savings is one of the major contributors to projected deal value as it can drive up to 40% of total synergy savings.
In Valorant’s experience, the following strategies are efficient identifying procurement-related savings opportunities during an M&A process:
Once the opportunities have been identified, our team is prepared to launch initiatives starting day
1. Starting with the low hanging fruits, we will address all opportunities to ensure the deal value gets realized. Based on our past engagements, some of the most successful strategies to drive procurement-related savings during a M&A process include
Key levers for Cost Savings during M&A
Our Procurement teams work closely with the functional and central IMO teams to ensure project delivery is aligned to the deal objectives and the integration timeline is adhered to with discipline
Interested in learning more about how Valorant’s Post Merger Integration services can help you realize profitable inorganic growth? Reach out to us now