Post-acquisition cases

Question

Hi, I have received 2 cases on post-acquisition - how to realize synergies - during my interviews with different tier-one consulting firms, and I did badly.

What is the framework to go with post-acquisition cases?

Thanks.

Answer 1

Hey,

If your question is specific to synergies, you need to be clear on following aspects before you think of a framework and solution:

Are you looking at cost savings/revenue synergies once the two firms have merged?
or is your question about evaluating synergies to make a decision on go/no-go for M&A or for integration once the M&A is done?

Cost Saving & Revenue synergies

Complementary products/services
Supply chain synergies
Shared IT
People synergies (from CEO to ground staff)
Scale efficiencies/Capital

Evaluating synergies for go/no-go

Financial analysis
Customer segments
Product/Service mix
Supply Chain

Integration

Processes
People
IT stack

Pick out the most relevant ones depending on the case and elaborate on key points. No need to drill too much per area..1 or 2 examples are good enough. Keep your overall structure to 3-4 branches.

Answer 2

Hi, I have a couple of great M&A cases I usually work with. Feel free to text me

Best,
Antonello

Answer 3

Happy to walk you through:

A solid post-M&A integration framework
Examples of real-life post-M&A integrations
Case interview practice of post-M&A

Answer 4

Hey there,

I will suggest not to learn a pre-determined framework; however some things you should think about:

Revenues sinergies (cross-selling, channels, new products)
Cost sinergies (raw material, production process, overhead, etc.)
Financial sinergies (interest rate negotiation, debt consolidation, etc.)

happy to practice some M&A cases if you need

Answer 5

Hi there,

Essentially, you need to break it down into:

Option 1

1) Revenue uplift synergies (volume increase, price increase, etc....make it situation specific)

2) Cost reduction synergies (reduction in back-office through consolidation, COGS through buyer power, etc.)

3) Ability to realize synergies - costs to implementing, odds of being successful etc.

Option 2

1) People - who to hire/fire, how to re-organize, etc.

2) Processes - which processes to adopt, which to merge + how, etc.

3) Tools - which tools to implement from each company, which to integrate/merge and how, etc.

That said, this totally depends on the case and prompt itself!