M&A Transitional Services

You’ve seen it before. The euphoria of an acquisition close quickly fades as the integration challenges overwhelm you. Research shows this happens more often than not, and that you never create the value intended with the deal. What happened? Is this inevitable?

It’s not, but it doesn’t happen by itself. Successfully managing the integration of a new employee population in a complex compensation and benefits environment, within constraints defined by a Purchase Agreement, limitations of incumbent systems, and maintaining regulatory compliance, all the while under the watchful eye of new but nervous employees just waiting for something to fail, isn’t easy – but it can be done. It’s about having the right expertise applied…people who have been there before…to carefully manage the integration, so vendors align to the new environment, systems and data are converted, compliance is maintained and the employees hardly notice.

A new disciplined approach to ensuring PMO rigor to the integration.

Reduces target employee integration risk

Proven execution methodology
Increased target employee retention and engagement

Expedites deal closure

No delays caused by HR compliance issues
Manages to the deal critical path

Accelerates harvesting post Day One synergies

Aligns HR workstream to investment thesis
Roadmap to workstream execution

What is included in M&A Transitional Services?

Frequently Asked Questions

I already have a PMO managing the overall acquisition integration process, doesn’t that cover it?

Excellent that you have a PMO in place. Coordinating across the various workstreams is important to ensure a successful Day One and beyond. However the HR workstream includes some very detailed things that have to happen to make sure the employer sponsored healthcare, retirement plans and HR systems all come across properly. For example, our standard process has 531 steps…intimidating perhaps but the truth is your integration plan should have that too. If you don’t you might be missing something, so hire the experts to make sure you don’t.

My HR vendors are saying they can handle it, why don’t I leave it with them?

Your vendors should be positioned to help. However, they will, at best, manage only their piece of the transition. They won’t make sure that all the vendors are coordinated, and that the data conversion is executed in the sequence required across all the systems. So each element may be handled, but nobody (other than maybe you) is making sure it all fits together. And Day One success is all about it all fitting together.

I have integration problems now, is it too late?

No. Our methodology is flexible, and we can come in, quickly determine the root causes of the problems, and execute a remediation plan as quickly as possible to get the problems behind you.

Can I afford to spend money on this?

Two dimensions to the answer. Firstly, Optimatum is a boutique firm, so while we have the expertise and the horsepower, we don’t layer on top of that a lot of overhead or “partner” time, which with larger firms you pay for, but get questionable value from.

Secondly, how much is the cost of failure? We find that clients can quickly earn back their Optimatum investment, considering the remediation costs at risk. It’s an ounce of prevention…