CHAPTER SEVEN
Timing
Timing is crucial. If you do not feel a continuous sense of urgency you are probably doing something wrong. Time is of the essence – once the deal has been announced, you need to prepare for the change of control and the post-merger integration period, which is when the value of the merger or acquisition will be realised. The post-merger period starts the second the change of control is complete. Every moment of delay is more time for the organisations to drift. It is more time for resistance to build and it is more time without the benefits of the deal. In this chapter we will look at the timing of the integration period up to the end of the cutover and examine the actions involved.
MANAGING THE INTEGRATION AND CHANGE OF CONTROL PERIOD
This section examines the activities and timing involved from the deal being agreed to the end of the cutover.
Timing and activities
The time it takes a pair of organisations to move from doing a deal to completing the change of control will vary. There are a number of issues that can impact it. Firstly there is regulatory approval to consider as the deal may be thought of as uncompetitive and not be allowed. However, there are also issues of cash and stock management to be considered, depending on how the deal is financed and the size and complexity of the organisations involved. A large merger or acquisition would typically take five to eight months. For the purpose of illustration, let’s assume it is six months.
The timing ...
