Achieving successful Mergers, Acquisitions and Divestments through operating model and supply chain design
Typical areas where value is realised;
– Improved achievement of Business Directives
– Clarity of realisable benefits, quantified and achievable
– Business design M&A and Integration specialists provide independent and responsive insight, minimising resource demands on in-house teams leading to:-
> Improved positioning during negotiations through more comprehensive pre-deal due diligence
> Ensure that the “NewCo” organisational operating model is optimised to deliver short and long term value in line with the post-merger strategy/goals
> Identify and rigorously manage transition and integration risks
M&A activities typically span across pre & post deal activities and our service can be tailored to assist where it adds most value.
Strategy & Target Screening (M&A Strategy)
Aim is to identify and prioritise business opportunities that meet strategic objectives and are commercially viable. Hivemind can help
- Develop initial Acquisition and Integration strategy to set out the broad approach based on business rationale covering nature of integration (loose/tight), organisational change and marketplace positioning, value creating goals
- Answer the: Why (rationale), How (approach) and the Who (target)
- Define target criteria, construct prioritisation rules and decision making governance
- Conduct public source research to help M&A team to validate assumptions on target business alignment, value-add and potential for cashable savings
- Focus on future state vision, target operating model and supply chain synergies
- Provide sector-specific insights for example standard operating models, main players in supply chains and regulatory aspects
Hivemind experts apply proven techniques such as Business Model Canvas, scenario planning, strategy formulation and cultural diagnostics to ensure the organisation is well-positioned to close the deal.
Pre-deal architecture/business design diagnostics across Business, Information, Technology for organisation and supply chain lays the foundation for success. Hivemind can help:
- Assess As-Is business capabilities of current organisations
- Construct scenarios for business capabilities of NewCo
- Assess application landscape of current organisations and NewCo
- Supply base and supply chain for current organisations and NewCo
- Deterine options for organisational structure / geographies / estates & facilities
- Determine transition roadmap(s) – Identify alignment and risk areas, consider culture, brand, develop business model canvas
Define Benefits Realisation and Business Change strategy/frameworks to answer the question: “how to realise the benefits from the integration”
- Near-Term synergies: in Operations, Supply Chain Management, Back office
- Medium-Term synergies: product/service rationalisation, cross-selling (this could also be short term?)
- Refine PMI strategy – based on business rationale
Define roadmap for priority capabilities to minimise business disruption and realise value, for example
- Basic workforce management services
- Complete Business Design/Architecture roadmaps for transition
- Finalise Risk management – analyse and reduce risks
Transition and Post Deal Integration
Following deal closure, attention switches to immediate transition of services for the new business unit and integration in line with the strategy.
Day 0 – Risk management and focus
- Governance & decision making
- Payroll & identity
- Corporate services operations – accounts payable & receivable
- Regulatory aspect – operating licence if applicable
Transition – Business integration aligned with the strategic objectives
- Deliver & refine communications and stakeholder engagement plans
- Work with the existing functions to better understand how the current operating models deliver value
- Facilitate the process of reimagining the desired operating model for “NewCo”
- Facilitate the decision-making process that decides upon those changes that are desirable, feasible and viable
- Translate the desired “NewCo” operating model into an agreed, realistic action plan
- Support Design and Delivery of NewCo operating model
Our Requirements of You
* Ensuring an executive sponsor from your organisation is allocated to the engagement, communicates the rationale behind it and signs off any ‘Terms of Reference’.
* Assisting in all possible ways to ensure that a contract, (and confidentiality agreement where necessary) is in place, in advance of any work commencing.
* Ensuring all support is in place and access is granted for all and any required data, processes, policies, meeting rooms and nominated resources to enable successful delivery of the engagement.
* Ensuring sponsor availability within the agreed timeline, to resolve any significant issues that may impact the timely completion of the engagement, if not resolved in a timely manner.
Our Commitments to You
We recognise that M&A activities are commercially sensitive and have a big impact on the people inolved. They may also be subject to regulatory and legal controls. We appreciate these additional aspects and provide additional need-to-know controls on the work that we do.
* Provide support throughout service delivery using our World Class Professionals and Subject Matter Experts.
* Provide high quality deliverables in a timely manner and in line with agreements upon engagement with the client. (Any changes to this will be mutually agreed in writing, in advance, between all involved parties).
* Provide deep insights and genuine value-add in all possible areas throughout the engagement.
Key deliverables include:
- M&A strategy
- conceptual operating model for target and ‘NewCo’ pre deal
- operatng model elements of transition service agreement
- cultural diagnostics to direct business change
- risk analysis and action log
- transition roadmap
Available Service Engagement Models
*This service may be engaged via multiple engagement model options to provide maximum flexibility.
Network Units enable complete flexibility around any engagement. When using Network Units, clients can swap and change delivery experts, scope and duration of engagements in a frictionless manner with very little notice, in line with the quantity of Network Units purchased. Network Units can be purchased in blocks of any size and at any time and are billed in full at point of purchase.
Project Based Engagement
Project based engagements operate on the basis of agreeing work and any outcomes or milestones for delivery in advance of commencement of any engagement in a ‘Statement of Work’. Prices are fixed for the agreed deliverables and should changes be required, these may incur changes to delivery costs. Payment for Project Based Engagements are agreed on a case-by-case basis, giving consideration to risk, contract value, client payment history, relationship longevity and duration.
A HiveMind Subscription Service enables clients to flexibly engage with HiveMind Expert(s) in line with the subscription purchased. Subscriptions typically run for 12, 24 or 36 months or can also be arranged on a rolling 6 monthly basis. Subscriptions for 6 or 12 months are billed at the commencement of service, with billing for 24 or 36 month contracts taking place on the annual anniversary of subscription commencement.