Merger integration
When it comes to merger integration, industry convergence matters. As they navigate relentless change, technology, media and entertainment, and telecommunications companies must recalibrate their acquisition roadmaps to more effectively align with their integration plans.
What EY can do for you
Technology, media and entertainment, and telecommunications companies are navigating through relentless change. Powered by transformational developments in technology, this change is driving shifts in customer habits and preferences, disruption of entrenched business models, and the emergence of unforeseen competitors.
As a result, organizations are recalibrating their acquisition roadmaps so they can more effectively align their merger integration plans. This delay can put the value creation opportunity at risk.
We’ve identified three key considerations for successfully integrating a convergence deal:
1. Focus on behaviors, as well as numbers
Single out a few business behaviors that truly make a difference to a successful deal outcome – the behaviors that matter most in terms of driving value from the deal.
2. Analyze strategic operating model redesign before closing
Think through your operating model implications before closing, because they often determine whether a deal meets expectations. Examine the reverse-integration option of moving an existing team from the buyer into the target, or using the deal to drive changes in the acquirer’s business processes and/or cultural behaviors to better match disrupted market conditions.
3. Consider modular integration
Recognize that not everything needs to be integrated as quickly as possible – and perhaps some functions shouldn’t be integrated at all. Determine the level of integration function-by-function. In many cases, it’s best to maintain a “loosely coupled” integration approach, which can allow for fast unwinding of a deal if this year’s brilliant deal becomes next year’s divestment.
What we can offer
EY seamless, end-to-end merger integration capabilities are grounded in a detailed view of the M&A life cycle – so we can flex up or down throughout the life cycle of a deal to meet your unique needs.
We help EY clients navigate complex integration efforts. Our broad view of the M&A life cycle means we never lose sight of the big picture, even as we execute on functional details. Most importantly, we’ve proven our ability to help market-leading clients execute on critical projects across the M&A life cycle.
When it comes time to provide, we deploy teams with hands-on functional, sector and account experience. We use global and local teams to provide top-to-bottom strategy and execution that’s cost-competitive compared with both boutique strategy houses and systems integrators.
While we leverage proven integration methodologies and leading class digital tools, our approach is highly customizable based on the objectives of the transaction.
