A fast, structured approach to identify the value-uniqueness in a post-merger integration to ensure 1+1≥ 3
Post-merger integrations are challenging, always unique, usually run behind schedule and tend to be dominated by the 'mechanics' and cost-synergies of integration - often ignoring the true value-add reason for the merger in the first place. Whether the M&A is driven by consolidation, a distressed purchase, geographic or product expansion, threatened competitive advantage or a drive to improve scalability, the real deal rationale is often lost in the challenges of bringing two or more completely individual companies together for the benefit of shareholders.
NewCo is a unique consultancy that works alongside Change teams, the CEO's office or Chief Strategy Officers to focus purely on identifying the value-uniqueness in a merger and to help activate the organization to deliver on the potential locked inside i.e. to ensure the new whole is worth more than the sum of the parts.
Tragically, 70% of mergers fail to deliver against shareholder expectations*.
Perhaps there is a better way...?
The Organisational Brand Alignment Consultancy ('OBA') is an entirely independent, highly focused post-merger integration specialist with substantial international strategic and implementation experience in over 15 mid-market M&As at a combined value of over US$15bn with a clear focus to ensure 1+1≥2. With such a high M&A failure rate across all industries and geographies, why do businesses fail so often to research, define and implement their optimal competitive advantage?
We often work in conjunction with the turnaround team with specific responsibility for enhancing enterprise value by optimising competitive advantage, repositioning the market focus to maximise multiples, redefining and realigning the combined organisations behind a new Vision and new strategy and cascading this throughout the organisation.
We specialise in rapid, short-term assignments for complex, visionary and fast-growth mid-market organisations (≤£1bn) to support CEOs, private equity investors. and new leadership teams. Our clients usually operate across multiple borders and are undergoing substantial change such as lack of market relevance, merger, acquisition, divestment and preparation for IPO or private equity investment.
Read on if your organisation:
Is failing to meet shareholder expectations
Is under-performing (aligned organisations are 2.2 times more likely to have above average EBITDA*)
Requires a sense of Vision to 'activate' the turnaround strategy
Is involved in a merger, acquisition or preparing for investment
Recent Example Projects (in reverse chronological order)
Private equity driven realignment of newly merged stalwarts of the $5bn global broadcast technology market behind a new Vision, new strategy and new market positioning with objective of increasing enterprise value by 150% in 3 years (1+1=≥2) in conjunction with CEO’s SG&A cost-cutting plan. Phase 1 of ‘NewCo’ relaunch Sept 2015.
Deutsche Börse (Frankfurt Stock Exchange): Integration of a large number of disparate, globally dispersed business units under one divisional brand with enterprise value of approx. €2bn. Drivers are confidential due to plc status.
Relaunch of highly advanced [confidential] decision support systems for health professionals: Redefinition of “what business are we in”, creation of new core proposition and market repositioning into marketspace where highest multiple can be achieved ahead of fast growth plan with possible private equity investment.
Post-merger integration of Rochem Systems GmbH (Hamburg) with APTWater Inc (Los Angeles) and Sepro Inc (Oceanside, CA) to create a single, saleable ‘NewCo’ on behalf of consortium of private equity investors led by Kleiner Perkins Caufield & Byers whose priority was to exit the space.
[Confidential] integration: supported group from post 2008 ‘crisis’ refinancing through to its 2013 £1.1bn IPO
Integration Vision to transition Nuffield Hospitals to become Nuffield Health as a full-life brand with acquisition of Canons Gyms, Sonar Health and a number of occupational health and physiotherapy businesses
Integration of Christ Water Technology (CWT) from the Vienna exchange with GLV plc’s water technology interests to create Toronto listed Ovivo (OVI.A:TOR) with operations in Europe, North America, Middle East, China and India.
Divestment of nuclear decommissioning engineering firm from Germany’s RWE, integration with UK counterpart and sale to the listed Freyssinet/VINCI group.
Portfolio Management for Weir Plc mineral division including legacy businesses in Australia, Brazil, Peru, USA, and Europe
Post-merger integration of EW Blanch into Benfield Group brands, subsequent LSE listing and ultimately sold to AON.
Merger of 40 paper distribution business across Europe (stretching from Russia to Scandinavia to Spain) to create €2bn Antalis group (part of Sequana SEQ.PA)
Launch or redefinition of several smaller businesses into highly focused market niches to maximise their valuations: includes recruitment agency, online job-boards (for Reed Elsevier), outsourced IT services, law firms, ratings agency, Asian bank etc.