Avoiding M&A Integration Disasters

War stories and what you can learn from them

A 400 million dollar diverse food manufacturing company purchased a 25 million dollar cookie company that makes identical “knock-offs” of its product. The acquisition closed with the following synergies:

  • closed the manufacturing facility
  • merged the product lines into an existing plant
  • migrated sales data in preparation for the upcoming financial sales and marketing budgets in 90 days.

The buyer soon realized that the access of the existing data would be extremely difficult due to employee terminations, proprietary systems, and data that was eventually considered unworkable due to errors and structure.

The following year resulted in missed sales, out of control inventory levels, customer shortages, and huge financial target misses. The impact of the misses resulted in Board of Director issues, lack of confidence in future M&A events, and the termination of employees.

Logan was retained to Program Manage the optimization of purchase, create a data migration strategy and create a technology roadmap for the buyer.

A multi-million dollar industrial products company sold several divisions to a top customer. The customer/buyer had no technology bench and the seller failed to create a solid plan to separate out its divisions from its centralized platforms.

Due to the lack of technology, due diligence and a strong Transitions Services Agreement (TSA) the buying company was dependent on extended technical support to operate its business. This resulted in huge business disruptions and cost overruns for the Seller. Logan support was to needed to correct the situation and to bring the separation of the two companies to realization.

This environment resulted in the loss of key technical staff due to frustrations and uncertainty, severe budget overruns, and executive confidence issues.

A multi-million dollar food manufacturing company had been divested by its parent to become a stand-alone entity. There was a hefty, existing TSA agreement in place, as well as SEC requirements for separation due to competitive conflicts.

The divested company set out to create its own datacenter and separated the systems to gain independence from its former parent. The company spent six months, and much of its original divestiture budget on preparation and agreements, only to have to halt the process due to insufficient project governance structure for this very complex event.

As a result, essential time was wasted against SEC requirements and re-estimation of funding was needed to complete the divestiture project.

Logan support was required to bring in the proper outsourcer, negotiate the proper agreements, and to structure the project properly in order to meet the SEC separation date.