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March2002TableofcontentsExecutiveSummaryThissectionistailoredtotheclientsituationandsummarizestheapproachproposedinthedocumentOurUnderstandingyourSituationThissectionistailoredtotheclientsituationandsummarizesthekeydriversofthemerger.Itshouldhighlightrelevantquantitativeandqualitativeanalysisthatdemonstrateourinsightintotheclient’sparticularchallengesanddriversofsuccessfortheintegrationA.T.Kearney’sPerspectiveonMergerIntegrationThebestvalue-builderscombineorganicgrowthwithmergersandacquisitionsBusinessIntegrationissuesrequire“usual”managementdecisionswhilefourmainfactorsaddanotherlevelofconsiderablecomplexity……explainingwhyonlyfewmergersandacquisitionssucceedfullyTopperformersacrossmostindustriescancreatesignificantshareholdervalueOncethedealisclosed,theprincipalproblemsrelatealmostentirelytofailuresinmergermanagement,ratherthantotheunderlyingstrategicrationaleTomanageinherentrisks,“criticalsuccessfactors”canbedistilledfromsuccessfullarge-scalemergerstoguidevaluecreationSource:A.T.Kearney'sglobalPMIsurvey'98ProposedOverallApproachA.T.KearneyhasaflexiblemergerintegrationframeworkwithacomprehensivetoolkittosupportplanningandimplementationthroughoutthemergerprocesstoensurevaluecaptureThisallowsmergingentitiestorapidlycaptureavailablesourcesofvaluebyfocusingonoperationalsynergies,aswellasseamlesslymergingtheorganizationsTheprogramstructuresupportsfocusedvaluecaptureteamsworkingacrossallSBU/GeographicteamsImplementationDuringthecriticalperiodpriortochangeofcontrol,theengagementteamassumestheroleofa“cleanteam”toenablecriticalpre-mergerintegrationAfterchangeofcontrol,theteamsquicklyfinalize—notidentify—synergyopportunitiesandgainconsensusSource:A.T.KearneyMergerIntegrationRealizingIntegrationSynergiesToassessandachievetheirsynergies,allteamscanleverageanumberofA.T.Kearney’sprovenmethodologiesandtoolsasappropriateWhichentityinthesupplychainshoulddevelopacapabilityisdeterminedbythebusiness’scaleandstrategicobjectivesDifferencesineachcompanyhavetobeunderstood,anddecisionsmade