Investment Banking

Complex Investment Integrations: Taking the Right Course of Action

September 30, 2019  |  By Phoenix Management  |  2 Minute Read

In our latest entry in our “Right Call” blog series, we will address how to successfully integrate large investments into your enterprise.

In the period following an acquisition, reality does not always line up with expectations. Consider a situation in which months after an initial acquisition you still have not seen the cost reduction synergies that were projected in the initial evaluation of the prospect. At this point, you have missed a number of key milestones detailed in your 100-day plan, and are wondering if it is possible to extract the value from the acquisition that you initially forecasted.

Missed milestones do not mean that intended synergies are out of reach, but rather indicate that part of your integration effort was ineffective. While it can be challenging to identify where an integration effort veered off course, achieving a clear understanding of the problem is the first step required to get your transaction back on track.

When an acquisition does not go according plan, you can either wait for synergy to happen or make it happen yourself. Here are three courses of action you can take:

1. Wait for Synergy to Happen

The easiest course of action is the one that requires no action. In this approach, you decide to wait for your projected outcomes to become a reality, in the hopes that a bit more time will lead to the projected value-driven benefits. But synergy is not spontaneous—it is made to happen. If the current plan has not elicited a positive benefit yet, it is not likely to occur overnight. Rather, you must take a proactive approach to revise your integration efforts to your company’s new reality. If you do not see your forecast playing out as planned, continuing to wait to enact a strategic plan will only distress your business more and increase the risk of losing employees and customers.

2. Make Strategic Decisions Yourself

As the leading engine driving the integration effort, you may decide to take efforts into your own hands, strategically devising a plan to counteract the current obstacles. Although you may strive to make tough decision from a nonobjective standpoint, as someone intimately familiar with the investment and all its hurdles and complexities, it can be challenging to evaluate the situation with complete objectivity. Plus, championing the effort alone may strain your relationship with the management team as you supersede their agendas with your own, ultimately impacting team morale and overall performance. Your primary role is to keep the business running despite the integration hiccup—and you have enough on your hands doing so without undertaking the entire integration effort yourself.


Your Guide to Making the Right Call

Download Now

3. Rely on an Integration Expert

For a completely objective opinion, you can bring in a third party expert who won’t step on the toes of management in the process of integrating rollups like yours. You will be able to dedicate your time and energy to everyday business as usual while a professional takes ownership of the problem, seeing the integration stays on time and on budget. Informed third party professionals can be brought in to manage a successful integration right away or help you get back on track down the line. Instead of hoping synergy will occur or trying to juggle roles internally, integration partners work with all facets of a company to successfully manage integrations and drive stakeholder value.

Integration Advisory from Phoenix

For over 30 years, Phoenix professionals have successfully led complex integrations in numerous situations from acquisition to consolidation, implementing successful solutions for improved operations. We understand the hurdles that come with large investments, and we are here to help you jump them with ease.

Our professionals work quickly to identify where synergy can be realized and implement solutions in a time sensitive manner, so your business can reach its projected outcomes. While you maintain everyday operations, we will get you over the finish line—integrating the investment on time and on budget.

Interested in learning more about our vast experience integrating complex investments? Check out our case studies to uncover the value we have helped organizations around the world achieve.

Put our experience to work for you.

Contact Phoenix Find an Expert