Articles | November 10, 2022
Some acquisitions fall short of expectations despite legal counsel’s diligence. A common reason is the acquiring organization waits until late in the transaction’s lifecycle to focus on the people, culture and leadership aspects of the deal.
Typically, that’s a risky choice because the expected outcomes are very dependent on:
Organizations that create and follow a comprehensive M&A playbook can help ensure their acquisitions go smoothly. An M&A playbook is a set of best practices that start well before the contract — in fact, well before a potential buyer or seller is ready to move forward with a potential deal — and extends well after the deal closes. It also provides a roadmap for a successful integration.
In “How an Energy Company Transformed its Acquisition Experience,” an article published in the Maryland Bar Journal, Fred Hencke, Senior Vice President and Segal’s M&A Practice leader, presents a case study of how a company revised its M&A playbook to make the latest in a series of acquisitions a success by adding several people, culture and leadership-related activities.
The article covers how the company addressed the following aspects of acquisitions:
The article describes in detail the strategy and tactics the company used to achieve its six key HR goals for the acquisition: (1) engage employees; (2) retain employees; (3) minimize disruption to plant operations; (4) manage change effectively; (5) improve HR’s business impact; and (6) accelerate post-close “time to productivity.” Each goal was achieved.
The article also includes a brief timeline view of the critical activities performed, the key (reusable) templates and deliverables created and the outcomes produced during the first six weeks, the first six months and the first 12 months after the deal closed.Download the article
As their legal counsel, your clients depend on you for guidance on how best to ensure the success of their acquisitions. Encourage them to develop an M&A playbook that’s geared to their industry and tailored to the size and complexity of each deal.
An effective M&A playbook can help acquiring organizations responding rapidly to emerging issues, including problems that arise with technology, operational workflows, methods and organization structures.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.