If you’re part of an acquisition team, your first task will be managing the transition from an independent company to one that’s now part of the larger organization. As the leader of this effort, you have quite a bit on your plate, and it’s essential to handle it all in the right way to ensure the success of your transition efforts.
Fortunately, our experts can help with valuable insight into transitioning successfully through Acquisitions and Divestitures while avoiding common issues.
Here Are Five Tips to Help You Manage Transitional Issues in M&A
1. Manage Transitional Issues Early
Companies declare victory once they announce plans to merge, forgetting that issues may hamper a smooth transition before, during, and after the transition process. Managers may also be dealing with an array of challenges with a company going through a period of divestiture, carve-out, or facing a buy-out. Start as soon as possible and get all hands on deck.
2. First Things First — Define What Success Looks Like
As with any significant project, it’s essential to define the idea of success. Is there a tangible goal? What metrics will you use to measure it? What milestones should you reach along your timeline? Knowing where you’re going is critical and allows stakeholders and key players to rally around a common goal. Early involvement is also crucial.
3. Good Process is King — Minimize Operational Risk
There is much more to transition services than simply shutting down a company or handing over assets. Transitions are about setting up good processes, procedures, structures, and standards. Only when these exist can you be confident that you will succeed—and only when these exist can you achieve your goals while minimizing operational risk.
4. How to Make it Happen (Rely on Experts)
Making a successful transition process happen is not an easy task, but companies know they must tackle that challenge quickly. A successful transition will increase transparency, mitigate risk, boost efficiency, create new opportunities, and build credibility and market trust. Use experts to help you make it happen. They can assist with your transitional effort. If you’re looking to acquire a business or divest an underperforming business unit, we can guide you through an integration plan from beginning to end.
5. Keep It Simple and Understand the Timeline
When it comes to transition management, simplicity and a firm grasp of the timeframe are your best allies. This will prevent you from feeling overwhelmed and enable you to make key decisions swiftly and efficiently. It is critical not to attempt to tackle too much at once. If you get caught up trying to integrate everything at the same time, things can quickly get out of hand. You will be more effective if you focus on one or two projects areas at a time before moving on to the next. By establishing a realistic timeline, you can ensure that everything is accomplished successfully for all key stakeholders.
How We Deliver Value
Whether our client is selling their company or part of the company, involved in startup services, or involved in IPO readiness, our team of dedicated experts is passionate about ensuring that you get value from our services. We offer value through:
- Positively impacting revenue, cash flow, profitability, valuation, cost reduction, and managing debt by focusing on the 7 Profit and Loss statements
- Cost reduction of buying and integrating assets and businesses, eliminating day-1 closing and integration issues, and increasing the value of transactions.
- Use of data-driven technology by selecting, deploying, and integrating systems that deliver economic value and drive efficiencies.
- Focus on five complicated issues around organizational effectiveness and efficiency, reducing costs, creating scale, eliminating business interruptions, and managing regulatory compliance, fines, and penalties.
Our M&A Practice
When should clients call us?
If you are going to be purchasing and carving out assets. Or if you are a buyer and have already negotiated a Letter of Intent and Purchase and Sale Agreement but have been surprised by the costs and complexity of day-1 readiness and carve-out.
We help you avoid common issues faced during transitional efforts with our expertise in Transition Services, including:
- Negotiation & Structuring of Transition Service Agreements
- Transition Planning & Execution Roadmaps
- Day-1 Readiness Planning & Execution Roadmaps
- Cash Settlement & Establishing Treasury Management
- Data Migration & Cleansing
- System Selection & Implementation
- Organizational Design & Establishment
- Interim Operations to Insourced or Outsourced Functions
At Sirius Solutions, we tailor solutions for individual clients. We are guided by a philosophy that ensures our clients get the requisite value needed in post-transition. We boast of consistent outcomes in our transition processes due to our experience and understanding. Check out a few of our success stories below:
Finance And Accounting Organization Creates Scale for Growth
Concerned that their business strategies would double the organization’s cost, we provided recommendations on strategic vs. non-strategic areas to focus on, thereby creating scale for business growth.
An Independent Exploration and Production company Becomes SEC-compliant after Merger on a Budget
After a successful merger, the client lacked the resources needed to be SEC-compliant on a budget. We worked with the company efficiently on the required timelines, setting them up for future success.
Ken Pujats, Director – Sirius Solutions
Contact us to learn more about our client successes with Managing Transitions and learn more about how we can support you with your own transition needs.