At Capgemini, Merger & Acquisition activity, including Post Merger Integration and Divestments, is one of our key competencies across multiple business sectors and industries.

This section includes:

• Benefits of post merger integration
• Capgemini’s approach
• Capgemini capability
• Success stories

The benefits of post merger integration

The benefits for an organisation of post merger integration include:

• Increased market share for the new organisation, building on and extending the existing footprint
• Increased position of strategic strength within the industry
• Expanded capabilities and product/service offerings
• Consolidation of resources and the ability to exploit economies of scale
• Consolidation of infrastructure such as IT

• Capgemini’s approach

Capgemini’s approach to post merger integration has two main phases:

• A 90 day Transition Management phase which includes target business model definition, organisational design, refined synergy calculation, change readiness assessment and process realignment, and
• An Organisational Transformation phase which covers activities such customer value proposition, supply chain and HR functions, asset rationalisation, systems integration and rationalisation.

Our whole approach is based on addressing six critical areas for success. These are:

• Leadership alignment: Organisations need to ensure that the critical projects and decisions are agreed and communicated by senior executives
• Value creation: It is vital to identify key products, rationalise the portfolio of offerings and identify new growth opportunities
• Organisational alignment: Organisations need to manage the culture change that will result from a merger and ensure that top talent is retained with a suitable benefits/reward structure in place
• Process Integration: The post merger organisation will only function properly if key business processes are aligned, such as those supporting supply chain, finance and HR functions.
• IT Systems Integration: Post merger organisations need to ensure their IT systems can communicate and look at the critical systems planning needs of the new organisation.
• Asset Rationalisation: Companies need to assess their available assets and then look to see whether these can be rationalised or divested of.

Capgemini capability

Our strengths are focussed on defining the right integration approach based on the merger objectives, by being involved early in the M&A Transaction. We assure a successful integration setup and management of all necessary integration activities, including post merger integration. We have a strong orientation on transaction areas which generate the expected value as well as proven experience across all industries. Our change management expertise focuses on dealing with the barriers that inhibit the success of post merger integration.

Our capabilities include:

• Integration blueprinting
• Executive alignment & selection
• Organisation design
• Transition planning
• Programme design and set-up
• Risk management
• Organisation mobilisation
• IT systems integration
• Change management

We can help you assess where your organisation is in terms of its ability to execute and deliver value from post merger integration.

Success Stories

Oil and Gas Supplier

The client was a leading provider of project management, engineering, procurement and construction services for the Oil and Gas industry. It had no clear strategic plan or market assessment to support ongoing development and sale of Oil and Gas processing products. We closely with the client to develop a plan using a hypothesis driven approach ending up in several parallel acquisition work streams and an aggressive organic growth plan. Capgemini Consulting completed the strategy development in the subsequent implementation start up. This involved coaching senior management, developing business plans for the regions and central offices and supporting the acquisition process.

Global Agrochemicals Firm

The client was created through the merger of the agrochemical divisions of two leaders in the Life Sciences industry. The merger created the largest global agribusiness firm, with market leadership positions across product types and geographies, but with significant competitive, market, and infrastructure challenges. The new entity required a integration program to span the breadth of all key company functions, align leadership toward a common vision, and achieve merger synergies while positioning for continuous growth. Capgemini led joint client teams and continuously refined the transition strategy at the functional levels. We completed opportunity definition, business case development, and roadmap development in each function, all of which accelerated the pace at which the companies have been able to integrate. Capgemini developed and managed the integration program office and infrastructure supporting 7 primary integration teams. Integration teams included supply chain, sales and marketing/CRM, human resources, finance, IT, ERP, management systems. Over $1 billion in combined cost savings and growth opportunities were targeted.

Chemicals Firm

The client was a speciality chemicals firm which acquired a division of a US-competitor. The project covered end to end integration work across the US, Europe and Asia with only four weeks to secure a smooth transition at closing. Capgemini worked with the client to design a comprehensive project approach, covering project/integration management, 8 functional streams as well as communication and mobilisation. This involved defining the scope, deliverables, tasks, time-frame and interfaces for every stream as well as development of checklists per each stream. While deadlines were tight, efficient project management resulted in an integrated business in 6 months.