Merger Integration Models

Merger Integration Models

Are you worried that your acquisition's integration activities are taking too long, costing too much, and producing questionable results?

The best deal in the world is going to fail if you don't quickly and precisely integrate and retain the valuable assets you bought.

Our Merger Integration Models are the fastest, easiest, and most effective merger integration tools available today. Within weeks you will be designing and implementing successful integration plans based on powerful fact-based data models that:

  Catalog every activity and system with their cost and purpose in a database

  Measure and forecast workloads with staffing requirements for each customer segment and product

  Find every redundant activity

  Increase productivity through scale economies

  Retain acquired customers with improved service quality

  Launch cross-selling initiatives for growth

  Best utilize all of your organization's skills and capacity

  Make it clear to the board and the public that you and your team are on a fast, successful track

Managing Merger Integration Risks

Most importantly, we'll help you and your management team successfully manage and minimize the two most important merger integration risks you face.

Merger Integration Risk number 1: Integrating excess staff and operations that exceed your needs. This will prevent you from immediately realizing scale economies and cost reductions. While this will delay your ROI and be disappointing, it's a short-term impact that you can recover from.

Merger Integration Risk number 2: Failing to retain and integrate sufficient operational capacity to retain all of the existing business and optimize your new revenue growth opportunities. This risk is at least five times more costly to your bottom line than than risk number one. A lost customer or prospect is extremely expensive to the new organization and yields a negative ROI on your acquisition investment. Your revenue base erodes and you are not able to replace it with new business. This impact is long-term. You can not recover from it. You can only hope you will soon become someone else's acquisition.

New Merger Integration Information Tools

We invented AIM-Activity Information Modeling^TM, a powerful new approach and methodology that provides detailed information about your entire business. AIM information includes activity workload measurements, product and customer segment costs, and improvement opportunities. No other approach or methodology delivers integration solutions faster, more accurately, more comprehensively, and more economically. We guarantee our models will help you quickly solve your toughest integration problems.

"AIM is a unique and valuable tool for us. It delivers new information needed to make better decisions and achieve our goals."
Larry Agoglia, Managing Director & COO Citigroup Private Bank

Merger Integration Models: A fundamental and critical M&A tool

Merging a newly acquired operation cannot be accomplished without precise product and process information that is organized for planning and integration implementations. Managers must know how time is spent in every department, what their processes produce, what their capacity requirements are, and their activity costs. AIM Integration Models make managers smarter and more effective at solving immediate problems and predicting future problems so they can be avoided before they occur.

Merger Integration Model Exhibit 1

This graph is from the workload calculation section of a merger integration model for an insurance acquisition. It provided Line of Business workload hours of an acquired insurance company (Company B). This information was critical to the acquiring company's (Company A) staff retention plan.

Merger Integration Model Exhibit 2

This Merger Integration Model chart provides the number of hours that each job position spends on each product in a bank's Loan & Letter of Credit Department. Note that some activity times are small amounts. Activity Information Modeling captures every activity... nothing is missed.

Merger Integration Model Exhibit 3

This exhibit is from a nationwide bank and was used to integrate an acquisition into their existing branch operations. It told them how much time was spent on all activities in each city and how each city varied from the national average. It was one of over sixty reports in their national integration staffing model that they used to quantify and understand the skills they needed to precisely meet each city's unique customer service requirements. Their AIM integration staffing models helped them improve customer service and had immediate impacts on increasing customer retention which contributed to increased profitability.