Mergers & Acquisitions Integration Handbook, 2nd Edition

CHAPTER 5The Pre-planning Phase

In this chapter, you will learn:

• The most common key activities that are part of integration pre-planning
• Reviewing pre-planning information and how to leverage it
• Prioritizing integration workstreams
• Assessing potential risk areas
• Managing transaction delays (i.e., close date delays)

The pre-planning phase should begin as soon as a deal is imminent, and a closing target date has been set. This is when companies typically make decisions to seek outside external support to augment their integration teams or to handle it internally. Either way, this is when it is critical to access the integration challenge and determine what resources are going to be required to manage it.

A target closing date is just that … a target. Close dates almost always move out by days, weeks, and sometimes by months. This can be caused by deal-related issues and/or regulatory approval timetables. Establish a “ready by” date that provides a cushion should a deal close a little early and stick to it. It’s always better to be ready and idle if you encounter a delay. Squandering a time dividend and then having to catch up in a hurry creates unneeded chaos and can impact your Day 1 readiness.

You can always adjust as you know more information, but the point is to have a firm date to be ready for Day 1, even if the actual Day 1 date may be somewhat fungible.

Exhibit 5.1 shows a typical integration timetable and a “ready by” date should be a week ahead of the target close date ...