Hur ska ägare, styrelse och företagsledning agera vid förvärv för att snabbt få till en bra ekonomistyrning och

uppföljning också av icke-finansiella nyckeltal?

Seminarieprogram

• Introduktion• Catharina Elmsäter-Svärd – Styrmodeller och nyckeltal i public

service och politikerstyrda organisationer• Michael Holm – Styrning och ledarskap i M & A• Filip Ekstrand – Ekonomistyrning, rapportering, nyckeltal i M & A• Paneldebatt• Avslutningsvis, eftersnack med lätt förtäring

About GPMIP

1

GPMIP locations and global reach We build teams dedicated to specific requirements: geography / M&A integration experience / business line experience.

Senior on-demand experts worldwide

experience from 260+ M&A projects

only experts

embedded into our clients’ teams,

activating clients’ staff

true richness of knowledge, skills and

operational experience

the alternative to the large traditional consulting firms

international partnership firm, supported by extensive network of local associates

pre- and post-merger integration and carve out services

GPMIP was setup to deliver M&A consulting in an alternative model, and we’ve grown fast because we deliver consulting differently

GPMIP – our history

2

Established GPMIP as a network of independent PMI experts with experience across 200+ integration and carve-out projects 2009

Evolved GPMIP as an international company by combining independent local firms and investing in our growth

2013

15 Partners in 13 countries supported by a large associate network of M&A experts around the world 2016

3

pre signing

Cross-border

pre-deal

post closing between signing and closing

Integrations and carve outs

4

Scalable involvement You tune the volume

training + building educate internal staff to efficiently take on integration responsibilities and activities

build in-house centers of excellence

integration launch

lead executive workshops to quickly establish the integration vision and overall integration plan

integration management provide integration resources for the duration of the engagement leading internal teams at onsite locations

integration management + workstream delivery + audit manage effort and fill the gaps in workstreams where client resources are unavailable

capacity to take on all workstreams execution

audit and remediate ongoing integration efforts

training & building

integration launch

integration management

integration management + workstream delivery +

audit

involvement

5

Capacity to Scale

Unique Benefits

Geographic Footprint

Emphasis

Differentiation – Why clients choose GPMIP

Large

Consultancies

Independent

Contractors

Brand Recognition

General Consulting Scalability

Wide Breadth of Services

Individual Skills

Global Presence

Local Resources

Local Resources Globally

Interconnected

Leverage & Build In-House

Teams

Integration & Separation Focus

On Demand Expertise Scalability

Individual Performance

Individual Scalability

6

GPMIP integration services

M&A strategic analysis •  strategic assumptions

•  aligning the transaction rationale with strategy

Opportunity analysis •  target selection

•  non-fin due diligence

•  synergy quantification & qualification

•  organizational design

•  cultural fit

Transaction development •  integration

management office setup

•  integration approach

•  100 days planning

•  communication plan

•  culture plan

•  risk map and mitigation plan

•  Coverage of all workstreams

Program execution •  post-close deep-dive

analysis of due diligence

•  project management

•  workstream execution and support

Transformation •  audits and reviews

•  business development

•  operational development

Training •  integrations

•  carve-outs

•  tool sets

Center of excellence •  set up

Customized methodology •  integrations

•  carve-outs

•  playbook development

We cover the M&A lifecycle with particular focus on post merger integration

Best Practices Sourcing & DD Support Integration Planning Integration Delivery

7

Local where you are

Christophe Van Gampelaere    Partner, Belgium M&A programs, finance lead, trainer, TSAs

Michael Holm Partner, Sweden M&A, PMI, strategy, telecom, tech & mobile device industry, Ericsson

Stefan Hofmeyer Partner, US Program, process, & cross-border facilitation expert

Robert Yu Partner, China Strategy, IMO, sales

Scott Whitaker Partner, US Acquisition & carve out, methodology, author, trainer & expert

Andrew Scola Partner, UK GPMIP tech sector lead carve out Director

Thomas Kessler     Partner, Germany M&A, TSAs, operational improvement, corporate finance, trainer

Günther Jauck Partner, Austria M&A, working capital & spend management, author, trainer, certified turnaround expert

Masaki Yamamoto  Partner, Japan Strategy, R&D management, org design, HR management

Makoto Ideno   Partner, Japan PMI, org design, HR management, culture and change

Michael Schiedel Associate Partner, Denmark Sales & Marketing. Branding, Innovation. Culture & Change.

Eitan Grosbard  Partner, Israel High tech expert, M&A Strategy, DD, PMI, GPMIP HR & ChM lead

Steve Coote Partner, Australia Strategic planning and implementation, M&A

Colin Hopkins  Associate Partner, UK Strategy, Pre-Deal, IMO, Program management, Trainer, M&A Design

Bill Fox Associate Partner, US Strategic Planning, Business Business Intelligence, Cross Functional Leadership

Philippe Joie  Associate Partner, France Cross functional technology integration initiatives.

in Europe, US, Mexico, Middle East, Japan and China

Gilles Ourvoie Partner, France M&A Strategy, PMI, org transformation

David Sneijder Associate Partner, Netherlands Pre-close planning, execution and Lean SixSigma specialist

Thank You

Michael Holm Swedish Partner

Stockholm

+46 768 67 0777 Michael.Holm@gpmip.com

Michael Holm      Partner Nordics + 46 76 867 07 77 michael.holm@gpmip.com

•  27 years operative industry experience,

•  9+ years in Post Merger Integration and Strategy.

•  Led the GPMIP team in Jack Link’s acquisition of Bifi and Peperami brands, a carve-out from Unilever.

•  Led the integration project in Arcus acquisition of Ålborg, FMCG spirits business with no disturbances in sales, supply or customer relationships.

•  Led the carve-out and co-lead the integration that formed the ST-Ericsson a 3,6 BUSD joint venture in a 18 month project.

•  Led the integration of SF Bio and Finnkino into Nordic Cinema group resulting in the 5th largest cinema operator in Europe.

•  Led the carve-out of Ericsson’s Enterprise (PABX) business when it was sold to Aastra.

•  Managed the 150 MUSD MFS/WorldCom account at Ericsson between 1994-98. Managed the BeNeLux countries 1999-2000

Book now available on Amazon

Governance and leadership in M&A integration

Michael Holm Nordics Partner

Stockholm

+46 768 67 0777 Michael.Holm@gpmip.com

Timing of planned vs actual synergies

From a PwC study GPMIP’s added value is for the Achieved time (red curve) to come closer to the planned time (black curve)

11

•  M&A and post merger integration (PMI) experience, especially the CFO

•  Common joint understanding

•  “Common interest”/alignment

•  Effective Due Diligence

•  Avoid earn-outs

•  Allocate board members time

•  Focus on value creation

Boards and M&A

12

Decision process pre- and post-deal/transformation

Close deal Approach Negotiate Go

No

go

Board meeting gives mandate

Board meeting approves deal

Due Diligence

Board informed

Deal team prepares analysis and material

Deal champion drives the dialogue with the board

Day One

PMI team validates analysis and plans implementation

Start Implementation

No

go

Board informed Board meeting approves plan

No

go

13

Unmanaged Approach

Board needs to ensure that executives think by asking the right questions The Return on Investment

Thought-led Approach

Neg

ativ

e Im

pact

Posi

tive

Impa

ct

Productivity

Employee Retention

Transition Progress

Customer Retention Maintain or improve customer satisfaction Loss of market share

Transition experiences delays and interruptions

Transition progresses more smoothly and quickly

Decrease in turnover Increase in number of employee grievances

Maintain or improve productivity

Loss of productivity

14

Selecting the new leadership team is the most critical decisions a CEO faces when

negotiating the signing of a deal

•  The decision have lasting implications so DO NOT underestimate them and be there to advice

•  The new leadership team will define the new organization's capabilities and influence its culture

•  Stakeholders such as employees, investors, and board members watch these decisions closely because they sets the tone for your integration

It will challenge the leadership skills of the CEO

•  Stick to the vision (existing or new) of the combined companies

•  Stay focused on objective facts – job requirements and leadership attributes

•  Define the announcement plan for the new leadership

•  Communicate to all stakeholders to get everybody on board

•  Move quickly to mold the top team

Who will run the new merged business, CEO?

15

•  Sort your search criteria

into the following

quadrants

•  Identify based on the

emerging pattern the

inherent organizational

structure for operating

the joint business post

deal

Organizational structure to unlock value

Need for organizational autonomy

Depth of integration

Important

Uni

mpo

rtan

t

Unimportant Important

Retention

•  Strategic capabilities linked •  to specific organizational

units•  Development of capabilities

requires a stable environment•  How can sufficient value be

generated to justify the purchase price of the acquisition?

Merger

•  Complete consolidation of operations/organization/ culture

•  Key is complete removal of boundaries

•  What time is best for complete integration?

Partial integration

•  Initial coexistence, then increasing interdependence

•  Balance between transfer and interdependence

•  Define ideal time horizon & path to mutual dependence?•  Brand management•  Sales channels•  R&D

•  Decision making freedom

Which joint future organizational structure will unlock the most value post closing?

16

1.  Assign a single accountable business sponsor across acquisition and integration, and establish coordinated governance across the program to ensure control

2.  Drive alignment early top-down for each management layers on deal rationale, objectives, scope, integration approach and growth opportunities

3.  Focus on value creation in the boards work with a M&A project. when deciding, requesting information and following up

4.  Ensure you resource-up integration programs appropriately, using top internal staff with integration experience wherever possible, and backfilling and using local external resources where necessary to support

5.  Establish a “Common interest” among the owners and board members (and executives) that will be the foundation for strategy and M&A strategy.

Top GPMIP lessons learnt from 260+ acquisition integration programs

GPMIP’s Acquisition Integration FrameworkTM addresses these key challenges, which are relevant to an integration

Governance | Alignment | Value Creation | Resourcing | Common Interest

Thank You

Michael Holm Nordics Partner

Stockholm

+46 768 67 0777 Michael.Holm@gpmip.com

Book now available on Amazon, Bokus

and Adlibris

Seminarieprogram

• Introduktion• Catharina Elmsäter-Svärd – Styrmodeller och nyckeltal i public

service och politikerstyrda organisationer• Michael Holm – Styrning och ledarskap i M & A• Filip Ekstrand – Ekonomistyrning, rapportering, nyckeltal i M & A• Paneldebatt• Avslutningsvis, eftersnack med lätt förtäring

Advince provides high-level, vendor-independentAdvice onAdvanced strategy & IT issues

Mergers & Acquisitions –

Hur ska ägare, styrelse och företagsledning agera för att snabbt få:

• bra ekonomistyrning • uppföljning också av icke-finansiella nyckeltal?

Presenterad av:Filip Ekstrand, Founding Partner2016-04-26

I samarbete med

Introduktion

Vad är IT Due Diligence?Mergers, Acquisitions, Carveouts –Typiska utmaningarMyten om skalekonominNågra avslutande råd

Vem är jag & vi?

• Advince:– Seniora, oberoende rådgivare– Totalt c:a 15 pers– Egenfinansierat, lönsamt, alla ägare verksamma i företaget – Lång erfarenhet från flertalet branscher– Vet hur aktiva ägare resonerar & prioriterar

• Filip Ekstrand:– Var med och grundade Advince 2005– Civ ing M-KTH, RO / Kapten vid Norrbottens Ingenjörskår– 1987 – 95 Traditionell managementkonsult– 1995 – 03 Pionjärföretag inom BI (Business Intelligence)

• DotCom-fantom 99 - 02, undkom med blotta förskräckelsen– Fyra barn, relativt skicklig sångare, halvsunkig veteranhockeyspelare

(Högerback i Viggbyholms IK:s ”Grisfemma”)

Introduktion

Vad är IT Due Diligence?

Mergers, Acquisitions, Carveouts, IPO –Typiska utmaningarMyten om skalekonominNågra avslutande råd

What is an IT Road Map?

• Effective– IT supports business processes adequately. It allows highly

efficient work methods, excellent productivity and will be able to handle known changes to the business.

• Low Risk– Not limited to information security and high uptime for critical

systems. Also means no obsolete / very odd technology, minimum dependence on individuals.

• Cost Efficient– If a used Toyota will do, don’t spend money on Ferraris & big

SUV:s• Good Usability

– IT applications should be easy to use, easy to learn, a positive user experience from any on-line presence

IT DD – Executive Summary

??

IT DD – Diagnos, Recept

• IT är i detta företag gravt försummat sedan lång tid.

• Kompetens – kanske både på beställar- och utförandesidan – har allvarliga brister.

• Stora investeringar och rikligt med Management Attention erfordras.

• Flera IT-relaterade risker har identifierats.

• Följande måste göras ASAP: x, y, z

IT DD – Diagnos, Recept

• IT stödjer affären på ett bra sätt

• Drift- och licenssituationen är under kontroll

• Teknik- och hårdvaru-uppsättning är modern

• Inga projekt som håller på att explodera

• Bra modell för IT Governance, relevant kompetens finns

IT DD – Diagnos, Recept

• Ofta stark tidspress, d v s:– Identifiera problemområden och risker– Ägna inte tid åt det som funkar OK– Gräv lagom djupt– Sätt på ”ägarhatten”

• (med all respekt) De traditionella DD-rådgivarna* behärskar inte IT-disciplinen– Advince kan ingenting om nutida utslag från

vattendomstolenVi vet Nada om de nya Basel XII-kraven på Cash Flow-analyser samt balansräkningen

• Spaning är att ”se men inte synas, höra men inte höras”

* T ex revisorer, affärsjurister, strategikonsulter, Investment Bankers & Corpar…

IntroduktionVad är IT Due Diligence?

Mergers, Acquisitions, Carveouts,IPO – Typiska utmaningar

Myten om skalekonominNågra avslutande råd

Utmaning #1: ”Korvgubbeekonomin”

Utmaning #2: ”Spagettisyndromet”

Copyright © Advince 2010

New General Ledger system

Data generated at new website

O/E system, divison B,C,D and E

O/E system, division A and Customer Category XYZ

Database created for Project X (now forgotten)

Staging Area for Sales Data Warehouse

Systems from a company acquired 1999

Different vendors, OS:es, databases, protocols....

MRP systems (two versions)

Utmaning #3: ”Rätt då, fel nu”

Börsintroduktioner - Utmaningar

• IT Risker– Ledningsinformation, rapportering

• Korrekt, Ensartad, Rätt timing

– Gammal / udda teknik, individberoende– Licensiering

• Microsoft, Oracle, BSA

IntroduktionVad är IT Due Diligence?Mergers, Acquisitions, Carveouts –Typiska utmaningar

Myten om skalekonomin

Några avslutande råd

Skalfördelar?• Tre företag i samma bransch, olika orter

– Branschen väl genomlyst av respekterade forskare– Gartner Group m fl har bra benchmarks för IT-kostnader

• Tradition av öppenhet, semi-konkurrenter• Omsättning:

– Malmöföretaget* drygt 7 GSEK– Norrköping knappt 5 GSEK– Säffle 1,5 GSEK

• IT-kostnader:– Per anställd 74 102 286 KSEK– % av totala kostnader 1.6 2.1 5,4 %

Malmö Norrköping Säffle* Företagen ligger i själva verket i andra orter (dock i Sverige)

Skalfördelar?• Tre företag i samma bransch, olika orter

– Branschen väl genomlyst av respekterade forskare• Tradition av öppenhet, semi-konkurrenter• Omsättning:

– Malmöföretaget drygt 7 GSEK– Norrköping knappt 5 GSEK– Säffle 1,5 GSEK

• IT-kostnader:– Per anställd 74, 102 286 KSEK– % av totala kostnader 1.6, 2.1 5,4 %

(Dys)Economy of scaleIT‐kostnader,% av FörsäljningEller annat nor‐merat mått

Storlek på företag

I teorin

I verkligheten

”Vi uppnår kritisk massa”

IntroduktionVad är IT Due Diligence?Mergers, Acquisitions, Carveouts –Typiska utmaningarMyten om skalekonomin

Några avslutande råd

Några sammanfattande råd• Otillräckligt IT-stöd är aldrig bara en teknisk fråga

– Kultur, kravställning, individberoende, projektstyrning, beslutsmodeller, användbarhet..

• Skalekonomi är inte självklart– Eller omvänt: Applicera det mindre företagets

kostnadseffektivitet på den stora organisationen– 8 av 10 Carve-Outs* leder till lägre IT-kostnader (normerat mått)

• Nästan allt kan köpas lika bra men billigare nu än för 10 år sedan. • Det finns bra benchmarks på vad tillräckligt bra IT ”ska” kosta. • Dina nuvarande IT-leverantörer, och de strategirådgivare de ofta är

liera med, kommer INTE att peka ut denna potentiella kostnadsminskning.

• Storbankerna ger dig inte neutrala råd om pensionssparande

* Avser Carve‐Outs Advince medverkat i. Två av dem beskrivs i vårt Private Equity Newsletter, Spring 2015

Let’s keep in touch!

Filip Ekstrand

filip.ekstrand@advince.se

+46 70 262 25 57

Seminarieprogram

• Introduktion• Catharina Elmsäter-Svärd – Styrmodeller och nyckeltal i public

service och politikerstyrda organisationer• Michael Holm – Styrning och ledarskap i M & A• Filip Ekstrand – Ekonomistyrning, rapportering, nyckeltal i M & A• Paneldebatt• Avslutningsvis, eftersnack med lätt förtäring