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Business Merger and Consolidation Integrations

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Success Stories: Merger and Consolidation Integrations

70% of all mergers and acquisitions fail to increase shareholder value.  Furthermore, 70% of the blame lies at the feet of inexperienced or unprepared Management.

The mission of Step-Change's business integration practice is to help our clients maintain a focus on value, capture synergies, and accelerate the pace of integration to minimize risk and achieve the strategic and financial objectives of the deal.  In other words, we make sure our clients are among the 30% that DO increase shareholder value.

Step-Change Principals have led over sixty (60) integration assignments:



Client:  Competing industrial manufacturing companies 


Challenge:  Merger of competing divisions


Process:  Assist integration, redesign global supply chain, improve product quality and shorten delivery process.


Results:  Product delivery shortened from 90 days to less than 30 days.  Savings of $100M in an 18-month period.  Turnaround from losses to a net 12% bottom-line profit.



Client:
  Independent oil producer


Challenge:  Acquisition of a $5B company
 

Process:  Pre- and post-close integration planning, human resources communications and management, executive alignment and coaching, installing infrastructure, training and supporting 50 integration teams.
 

Results:  70% increase in stock price between date of announcement and date of legal close.




Client:
  Fortune 100 office equipment manufacturer
 

Challenge:  Loss of market share drives acquisition of a firm in a higher growth market.  Track record of failed acquisitions.
 

Process:  Successfully integrated an entrepreneurial firm into a larger, more bureaucratic organization. Managed the integration program office; drove pre-close functional integration planning; developed business stabilization action plans; installed key performance measures.
 

Results:  The acquired business has gained $1.5B (300% increase) in economic value within two years.


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2/18/2004

© 2004 Step-Change Management, LLC