Supporting the HR workstream throughout the M&A lifecycle encompassing pre-deal due diligence, Day-One readiness and post Day-One synergies.
Fact: 70% to 90% of M&A transactions fail to achieve intended results.
66%
report difficulty managing workforce integration with limited HR resources.
71%
of executives say integrating compensation and benefits is a significant challenge during M&A transactions.
62%
find transitioning HR systems and technology particularly challenging.
Sources: Harvard Business Review and People Issues in Mergers and Acquisitions: Learning from Experience.
Optimatum’s M&A practice de-risks
the transaction including:
Reduces Target Employee Integration Risk
A proven methodology to increase target employee
retention and engagement
Expedites Deal Closure
Aligns the HR workstream to the investment thesis and provides a clear roadmap to execution
Accelerates Harvesting Post
Day-One Synergies
Aligns the HR workstream to the investment thesis & provides a clear roadmap to execution
Delivers ROI
A cost-advantaged solution with low overhead that delivers payback through cost avoidance
Role of Optimatum across the M&A Lifecycle
Harmonization
“We looked at 60 or 70 different
operations we had… where a
certain amount
of centralization can save real
money. We found inefficiencies.”
-Warren Buffett, Berkshire Hathaway 2021 Annual Meeting
Harmonization of the HR workstream
involves creating and capturing value by consolidating and optimizing HR and benefit programs, vendors, systems, and processes.
Benefits of Harmonization
Creates Value
Economies of scale and aggregated purchasing power create value
Saves Time
Streamlined processes, fewer meetings, single customer support team
Enhances Programs
Delivering programs that were historically not available to standalone entities enhancing attraction and retention
Improves Compliance
Consolidated reporting and streamlined compliance lowering the risk profile
Real Results
Medical/RX
Cost mitigation of $6.3M/year of
Medical and Pharmacy spend
Continued value capture through harmonizing
additional benefits; expected cost mitigation of $1.5M
Employer Sponsored Healthcare
$5M annual cost mitigation plus process
improvements of~$1.5M annually
Streamlined operations and compliance through
creation of a shared service center
PAYROLL
Cost mitigation of ~$500K
over 3 years
Establishment of shared service center enabled
entities to reallocated internal resources
Large Hospital Acquisition
HR Benefits, Retirement, HCM, Payroll,
Offer Letters, Time Clocks, I-9 Implementation
1,400 Employees integrated 5 – week go live timeline
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