due diligence for succesful post merger integration

9
© Dr. Karl Popp 2014 INTRODUCTION TO MERGER INTEGRATION DUE DILIGENCE

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To avoid failure in merger integration, a new part of due diligence is presented: merger integration due diligence.

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Page 1: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

INTRODUCTION TO MERGER INTEGRATION DUE DILIGENCE

Page 2: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Due diligence task

Due diligence

Goal Objectives

Provide information for an informed decision to buy a company

Minimize information asymmetryMinimize riskMaximize quality of resultsMaximize likelihood of integration success

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 3: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Maximize likelihood of integration success

• Plan carefully• use internal experts for reviews

for the plan• review risks and impact of past

integration plans and results

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 4: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Merger integration due diligence task

Merger integration due diligence

Goal Objectives

Review merger integration project and plans

Maximize likelihood of integration success

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 5: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Decomposing the merger integration due diligence task

decomposition

Review the Design of the

new entity

Review Merger

integration plans

Task

Merger Integration

Due Diligence

Review Merger

integration project

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 6: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Review the Design of the new entity

• Key questions– Are enough qualified

resources planned and available?

– Are the assignments of resources to tasks sufficient?

– Are sufficient resources planned and available?

• Key activities– design of the new

entity has to be reviewed for consistency and completeness.

– behavior of the new entity is reviewed.

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 7: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Review merger integration plans

• Key activities– review the

schedules– review the steps

of the merger integration plans

• Key questions– Can the merger

integration plan be executed as defined?

– Will sufficient resources and budgets be available at the right time to execute the merger integration plan successfully?

– What happens if we run late or we have resource shortages?

Source: K.M. Popp: M&A in the software industry: Foundations of due diligence

Page 8: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

http://www.mergerduediligence.com

Literature

Page 9: Due Diligence for succesful post merger integration

© Dr. Karl Popp 2014

Mehr Information finden Sie hier:http://www.mergerduediligence.com

http://www.mergerintegration.eu