Mergers, Acquisitions, Due Diligence and Restructuring
Research consistently shows that the acquiring company must conduct a through due diligence, and act quickly to develop an action plan for a fast, well-focused transition. Key changes and improvements must be accelerated in order to capture value, or the chances for success are greatly diminished.
“Mergers & acquisitions represent a unique window of opportunity to rapidly implement change, reduce future costs and create a positive work environment … Key changes must be accelerated to capture value.”
Management Review Journal
Due to the magnitude of these projects and aggressive timetables for completion, very few companies have adequate people resources to fully capitalize on these opportunities for change. As a result, many potential savings and improvements are never implemented.
Most M&A Projects Fail to Increase Shareholder Value
According to recent studies, 83% of new mergers and acquisitions fail to create or achieve their intended financial objectives. Not surprisingly, approximately 65% of companies surveyed cited people-related issues among the principal reasons for failure. Specific reasons cited include:
- Poor Due Diligence
- Inadequate or Delayed Integration and Improvement Strategies
- Inaccurate Assessment of Employee Talent and Loss of Key Personnel
We Can Help (Union and Non-Union)
For the past 30 years, Hutchison Group has provided the additional support required to ensure all potential benefits are realized, creating a sustained competitive advantage for your new business. Our team of professionals have decades of experience helping our clients evaluate potential mergers and acquisitions; understanding potential risks, and identifying opportunities for significantly improving business performance. Some of our services in this area include:
- Risks and Opportunities Assessment (Due Diligence)
- Negotiate New “Win-Win” Competitive Labor Agreements
- Restructure Labor Costs and Improve Flexibility
- Evaluate Key Personnel
- Develop Employee Communication and Integration Strategies
- Research Potential Government Incentives
Planning for Successful and Profitable Divestitures
When selling a company, proper planning for business divestitures and similar restructuring events represents a unique opportunity to achieve meaningful long-term labor cost savings and productivity improvements that would normally be met with resistance and prove difficult to implement. As part of our divestiture planning process, we work closely with company management to prepare a report for prospective buyers identifying potential opportunities for securing significant cost savings, helping the seller generate increased interest, higher company valuation and purchase price. In addition, our report includes specific recommendations and process methodologies as to how the cited improvements can best be secured and implemented.
“Great job negotiating new competitive labor agreements for Spirit AeroSystems and Allison Transmission…restructuring costs, increasing flexibility and setting the stage for future success.”
Onex Corporation / The Carlyle Group
Successful Mergers and Aquisitions (Click Here To Download Brochure)
Planning For Successful Divestitures (Click Here To Download Brochure)