Transaction Integration, Commercial Due Diligence
Recent studies show that globally over 50% of deals fail to create value without successful integration. This is particularly important in Japan, where cultural issues can make successful implementation even more challenging for both domestic and cross-border transactions. Lack of leadership and commitment to integration by management, insufficient resource allocation and integration-related risk management, and human resources and corporate culture challenges facing the new entity are often cited as the causes of failed transactions.
Our Operational Transaction Services team provides a full range of integration services to help our clients align the transaction rationale with their overall strategy; assess, validate and capture synergies; identify, manage and control integration risks and challenges; and address critical human resources issues associated with mergers and acquisitions.
Our Operational Transaction Services team is comprised of people with not only integration experience, but also direct management experience at management consulting firms and large corporations.
Our integration services include:
- Identification of integration risks and challenges
- Development of detailed work plans
- Mitigation of integration-related risks and monitoring of integration progress using various integration monitoring tools
- Execution of planned communications targeting various stakeholders
- Synergy analyses and execution of synergy capture plans
- Facilitation of the various integration work streams including IT, finance, real estate, human resources and supply chain
- Post-deal organization and human resources integration strategies
- Rationalization and realignment of corporate culture
- Redesign of total HR processes, board of directors and executive compensation
- Restructuring and downsizing strategies
- Redesign of pension plan
- Talent assessment
Our carve-out services include:
- Identification of carve-out issues and advising on those issues
- Identification of required transition services agreements
- Monitoring/reporting on status of new services creation and transition projects
- Advice on the tactical direction in developing corporate infrastructure (i.e., buy vs. build)
Our commercial due diligence services include:
- Review of target’s business plan and analysis of integration synergies
- Analysis of operation’s efficiency, accuracy, and application to the buyer by developing a post merger operations map
- Identification of risks and integration challenges by understanding the IT organization, efficiency, applications, infrastructure and disaster recovery processes
- Identification of HR-related issues by interviewing HR personnel and management, and analyzing personnel policies and procedures
- Evaluation of pension plan
Our market due diligence services include:
- Analysis of market trends (growth, maturity, decline) and other competitive factors
- Identification of target’s position in the industry and its relative strengths and weaknesses