Case Study:
Acquisition Integration
Situation
A large Midwest company was in the process of negotiating to buy a business from a private equity firm that would double the size of one existing operating division. The acquisition target was considered to be a good strategic fit, was available at a reasonable price and would allow the organization to find savings in economies of scale once integrated into the current division’s structure. The acquisition could create a more dynamic and leaner division with a broader reach into new markets. Senior leadership did have concerns about the integration process: combining the two cultures, fostering the teamwork needed to guide the transition, and assessing management talent for the new prospective enterprise.
As part of their due diligence process, corporate executives teamed with Hyde & Lichter to evaluate the prospective acquisition, gain a deeper understanding of all the issues affecting the transition and develop an effective game plan to successfully integrate the two organizations.
Client Solution
- Conducted an organizational analysis of each company in order to understand culture and operating style. The organizational analysis consisted of an on-line organizational survey and a cross-section of interviews with key leaders in each business.
- Conducted developmental assessments of the key leaders in the acquisition to understand management style, career interests and ability to adapt to change inside of a new organization.
- Provided feedback to the senior executive group on organizational dynamics, critical stress points and key leaders.
- Worked in conjunction with the executive leaders and the transition team to develop and execute a game plan to integrate the two businesses.
- Facilitated team building and transition meetings to help integrate the new business.
- Provided developmental feedback and coaching to key leaders inside of the new organization.
Outcome
The integration process accelerated the learning about the individual businesses in a way that allowed the new business enterprise to achieve the results that were targeted at the outset of the venture.