The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration at Every Level

480 Pages·2014·3.4 MB·English

by  Timothy J. Galpin

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The Complete Guide to Mergers
& Acquisitions
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The Complete Guide
to Mergers & Acquisitions
PROCESS TOOLS TO SUPPORT
M&A INTEGRATION
AT EVERY LEVEL
Third Edition
Timothy J. Galpin and Mark Herndon
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LibraryofCongressCataloging-in-PublicationData
Galpin,TimothyJ.,1961-
Thecompleteguidetomergersandacquisitions:processtoolstosupportm&aintegrationateverylevel
/TimothyJ.Galpin.—Thirdedition.
1onlineresource.—(TheJossey-Bassprofessionalmanagementseries)
Includesindex.
DescriptionbasedonprintversionrecordandCIPdataprovidedbypublisher;resourcenotviewed.
ISBN978-1-118-82726-0(pdf)—ISBN978-1-118-82702-4(epub)—ISBN978-1-118-82723-9(hard-
back)1. Consolidationandmergerofcorporations—Management. I.Herndon,Mark,1960-II.Title.
HD2746.5
658.1′62—dc23
2014016231
PrintedintheUnitedStatesofAmerica
FIRSTEDITION
HBPrinting10987654321
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Tomyfamily,whohavesupportedmethroughout.
—T.G.
ToAndreaandNatalieGrace,
YourloveandlaughterhavesustainedmethroughmanyintenseM&A
assignments.
—M.H.
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TheJossey-BassProfessionalManagementSeries
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C O N T E N T S
ListofExhibits xiii
Foreword,byJimJeffries,cofounderandchairman,
M&ALeadershipCouncil xvii
Preface xxiii
TheAuthors xxix
ONE Integration: Where Deal Value Is Realized 1
BuyerBeware! 2
FactorsContributingtoPoorM&AResults 4
DealStrategy—ThenandNow 6
StrategicDealRationale:TheEightCs 8
SerialAcquisitionsasaGrowthStrategy 9
IntegrationsExistonaContinuum 10
TenKeyRecommendationsforMaximizingDealValue 15
DevelopaSustainedM&ACapability 18
BeSuretoAvoidtheKillerPhrases 19
ChapterSummary 21
DiscussionQuestions 23
RapidAssessmentTool 23
vii
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TWO The Deal Flow Model: Pitfalls and Best Practices
Throughout the M&A Process 25
TheDealFlowModel 27
ChapterSummary 53
DiscussionQuestions 54
RapidAssessmentTool 54
THREE Integration Begins with Due Diligence 57
DueDiligenceShouldPreventSurprises 58
DueDiligenceIsanIterativeProcess 63
ManagingDueDiligenceasaRapidResultsProject 65
TargetorPartnerFirmParticipationinDueDiligence 67
PrioritizeSynergiesAccordingtoTheirImpactsonDealValue 68
DueDiligenceandIntegrationStrategy 70
DueDiligenceandIntegrationRiskFactors 70
DueDiligenceandOrganizationalCulture 73
DueDiligenceandHumanResources 79
DueDiligenceandHumanCapital 83
ChapterSummary 84
DiscussionQuestions 85
RapidAssessmentTool 86
FOUR Welcome to the Big Leagues of Change Management 89
OrganizationalDynamicsCreatedbyMergersandAcquisitions 90
SevenFundamentalsofM&AChangeManagement 92
ChapterSummary 107
DiscussionQuestions 108
RapidAssessmentTool 109
FIVE The Merger Integration Work Streams Model 111
TheMergerIntegrationWorkStreamsModel 113
DeployingtheModel 124
ChapterSummary 130
DiscussionQuestions 130
RapidAssessmentTool 131
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Contents