Structuring Your Merger & Acquisition Projects for Success

Mergers & Acquisitions Represent a Unique "Window of Opportunity" to Rapidly Implement Change and Reduce Future Costs "Key changes must be accelerated to capture value." Management Review Journal

According to recent studies, it is estimated that the majority of new mergers and acquisitions fail to create or achieve their intended financial objectives.  In fact, these studies report 83% percent of all acquisitions fail to increase shareholder value while 52% actually erode the value of the combined businesses.  §      Only 17% of all M&A Projects Improve Shareholder Value §      52% of all M&A Projects Actually Erode Shareholder Value

Not surprisingly, approximately 65% of companies surveyed cited people-related issues among the principal reasons for failure.  Examples include:   §         Poor Due Diligence §         Failure to Implement Meaningful Cost Reductions §         Inaccurate Assessment of Employee Talent §         Loss of Key Personnel §         Inadequate or Delayed Integration Strategies

Our team of professionals has decades of experience working with major corporations, helping them evaluate potential merger and acquisition candidates, identifying potential risks and liabilities, and targeting viable opportunities for improving business performance.  Some of our services in this area frequently include: helping our clients to evaluate new personnel to ensure they retain the best talent or identify weak spots in the organization, negotiating competitive labor agreements and ensuring proper implementation, developing new and more flexible job structures, reducing labor costs, and simplifying administration.       §         Identify Risks & Opportunities (Due Diligence) §         Reduce Labor Costs §         Integration Strategies §         Negotiate New Labor Agreements §         Minimize Project Costs §         Identify Government Incentives

When working with a client with the sale or divestiture of a business, our primary goal is to help the client identify all potential labor-cost savings available to the buyer, as many buyers fail to identify or capture the full benefit of these savings.  Therefore, as we cannot (nor should we) fully depend on the buyer to maximize these cost-saving opportunities, it is essential that we leverage our own skills and experience to understand what is possible in this area. 

"The Seller must leverage their own skills
and experience rather than depend
 on those of the Buyer."

While the advantages of our firm's independent labor-cost assessment are valuable when acquiring a company, this process may prove even more helpful when selling or divesting a business.  We can help:  §         Secure a better sale price for the business. §         Capture all labor-cost savings; not relying solely on the Buyer's initiative. §         Leverage cost savings to increase number of potential Buyers.   §         When selling to a future supplier, labor-cost savings are critical to future pricing.   §         Our team can assist the Buyer / Supplier maximize savings to everyone's benefit.

As a result, many potential labor-cost reductions are never realized.  Our firm is fully prepared to provide the additional support required to ensure all labor-cost reduction opportunities are realized.  Clearly, our experience and success with some of the world's best companies demonstrates the effectiveness of our approach and capabilities of our team.