Tom Oser, CEO of Pipeline Strategies Consulting: "Managing Risk in Mergers and Acquisitions with Business Process Management" M&A Deal Evaluation & Planning of Integration reduces risk of achieving success of the merger.
Venue: SBS (Stark Business Solutions) Conference Center, Harrison, NY.
Presenter: Tom Oser, Founder and CEO, Pipeline Strategies Consulting Topic Overview: Market cycles in longer term of mergers and acquisitions have seen varying amounts of leverage allowed or limited for private equity from 10% to upwards of 30%-40%. In the heady days of high allowed leverage, the target can be loaded up with debt, and then cash out almost soon after closing the deal at a fantastic profit based simply on the financial engineering that ensures success - for the deal makers! But when leverage is more sane at 30% and 40% levels of required capital to structure the deal, returns have to earned by staying in the business and achieve true value growth in the business to achieve an exit at targeted ROI levels.
There is a lot that need to go into the deal that anticipates making the merged entity perform and grow a the levels anticipated by the assumptions of the financial structure of the deal!
In this session, Tom Oser addressed the challenges of M&A evaluation of deals from the perspective of risks in operational integration as a function of complexity and relative alignment of the underlying businesses, and the expectation around the extent to which 'synergies' will derive the value growth to be achieved by the merged entities.. The rise of standard models and techniques for Business Process Management makes it possible to consistently address:
Capacity of business capabilities to effectively integrate in post merger situations
Resilience of the business to maintain focus on the merger integration long past the first quarter of effort.
How the CIO contributes to achievement of the post-merger synergies financially engineered into the deal.
Real case situations and client experiences were discussed involving advisory services and execution in post-merger environments.