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North Shore (HQ): 500 Skokie Blvd, Suite 515 | Northbrook, IL 60062​    Chicago: 200 S Wacker Dr, Suite 3100 | Chicago, IL 60606

Acquisition Integration

Due diligence, integration leadership, and post-integration support across all functions

In many cases, acquisitions that were viewed as great fits strategically and culturally do not perform as expected when combined. Underperformance tends to be the rule, not the exception.  At FortéONE, our team of Partners and Consultants has led the successful integration of more than 100 companies, allowing our clients to realize the market and financial synergies that they projected.

Process

Integration of multiple companies is both art and science, and it is a full-time job to run a company and another full-time job to change it.

  • Work with PE firm / Acquiring Company to review investment thesis, assess potential target companies, perform due diligence, prepare bid strategy, and review LOI

  • Assess Integration Resources, Processes, and Post-Closing Investor Expectations

  • Develop an Acquisition Integration Plan & Recommendations to implement

  • Provide Project Management and interim resources to execute integration plan and assess progress

 

With a core of the Integration Strategy, the Implementation Leader will need to focus on: Organizational Structure & Staffing | Financial Alignment | Culture | Systems & Process Integration | Operations & Facilities Optimization/Rationalization | Messaging & Communication | Sales & Marketing Alignment

For business owners whose growth strategies include acquisitions, it is wise to understand the common mistakes and the approaches that are most effective in achieving success.

  • Acquisition Integration is not a part-time job, nor is it a time to learn on the job

  • CEO of the platform company may not be the best person to define the new strategy of the combined companies

  • Revenue growth and margin of the combined companies will likely differ from past practices

  • Understanding and defining the company culture takes priority

  • You do not need to find a space for all employees in the combined firm

  • Tread carefully when leveraging market power with existing suppliers/customers

  • Delaying the IT integration is not a bad thing

Recent Engagements

National Engineering Services Provider
Two acquisitions had doubled the size and increased both complexity and geographic reach of the firm. Integration was not going well, profits were declining, and the CEO was struggling to adapt. We assisted the firm with integration implementation, pricing, firm strategy, leadership assessments, new organizational design, and cost to serve financials. Following some key leadership additions, the firm returned to historic profit levels.

National Medical Device Repair and Manufacturer
The firm was struggling to integrate 3 acquisitions, margins were decreasing, and clients were consolidating. We assessed the firm, then worked internally with their operations, finance and sales teams to reorganize the firm, install SIOP/supply chain firm wide, and change sales processes. Sales now at 15% growth, profits increased from $2.5MM to $6MM, and firm is receiving purchase offers at high multiples.

 

Food Manufacturer & Distributor, Regional Distribution

Firm had flat profits and unfocused integration strategy. We developed a plan that discontinued work in the unprofitable acquisitions, expanded the markets for core products, and reduced seasonality of sales. Profit impact of $300k+.

FortéONE Team

FortéONE will provide an integration team to meet the demands of your project. Our integration leaders have all been through multiple integrations in their specialty areas across multiple industries. Our core group has led dozens of integrations from pre-due diligence to post-acquisition and learned best practices for an optimal outcome.

Contact us today to learn more about our services and how we can help you with due diligence and integration post-M&A.