Merger Integration Planning & Execution – Business Services Company

Situation

  • A client in the loyalty management industry was planning to acquire a similar business from an international payments company. The client needed assistance with planning for the carveout of the acquisition target and integration of the target with itself.

Approach

  • Established the Integration Management Office (IMO) to manage the transaction, quantifying synergy and cost estimates, managing the TSA, managing execution, etc.
  • Assessed the spectrum of options available to the client in terms of modernizing its technology platform with the material increase in customer base from the merger (i.e., “like-for-like” technical upgrade, converting the platform into a SaaS product, etc.).

Outcomes

  • Helped the company flesh out details for the targeted $12M of post-close synergies, including identification, planning and execution of 25% more of savings.
  • Worked with the client to document activities and pricing for services under the Transition Services Agreement (TSA).
  • Assisted the company with execution of post-close transition and integration projects across all company functions.
  • Assessed the spectrum of options available to the client in terms of modernizing its technology platform (cost, time to complete, execution risk, etc.) and provided insight into the relevant players in a highly fragmented software industry. Recommended that the client take a more conservative approach given a lack of executive-level support for change / investment, skill sets of the team, competitiveness of the market, etc.