OPTIMIZING INTEGRATION

Padma Thiruvengadam Kelly Magnuson

FROM THE LENS OF THE CEO AND BOARD

SHAREHOLDER VALUE

DELIVER IMMEDIATE TARGET VALUE POSITION FOR LONG-TERM GROWTH AND RETURN

Align to Strategic Planning

Talent Plan Org Design, Talent Retention & Engagement

Deliver on Operational Plan

+ + + MARKET PORTFOLIO OPERATING MODEL PEOPLE

Target Identification

•  Team •  CEO •  CFO •  Business

Development •  Strategy •  Select

Executives

Due Diligence

•  Team •  CEO •  CFO • General

Counsel •  CHRO •  Business

Development •  Strategy •  Select

Executives

Integration Planning

•  Team •  CEO •  CFO •  CHRO •  Acquiring

Company TEAM

•  Target Company TEAM

Legal Day One

•  Team •  CEO •  CFO •  CHRO • Merged Team

Transition to Business As Usual

•  Team •  CEO •  CFO •  CHRO • Merged Team •  Identified

Leaders and appropriate team members

FROM IDENTIFICATION TO BUSINESS AS USUAL

HUMAN RESOURCES PLAYS A VERY CRITICAL ROLE AT EACH PHASE

REALIZING VALUE THROUGH INTEGRATION

Immediate Target Value •  Combined Revenue

•  Operating Margins

•  Portfolio Value

•  HIGHER CALIBER TALENT

Long Term Value •  Revenue growth through differentiated value

proposition •  Leveraging Portfolio for incremental value

creation •  Greater ROI

•  COLLEAGUES TO REALISE LONG TERM VALUE PROPOSITION

CEO: Return on Invested

Capital

SHAREHOLDER RETURN

COLLEAGUES ARE CRITICAL TO DELIVERING IMMEDIATE AND LONG TERM VALUE

INTEGRATION PLANNING MIRROR TEAMS IN EACH COMPANY

Workstreams Organized on specialty areas of focus

Process Organized based on how you conduct

business

Project Organized based on structure of

organization

Program: Key Objectives for the Integration

Integration

Sales & Marketing

Sales Compensation

Product Development

Product Portfolio

Prioritization

Manufacturing

Product A Manufacturing

Individual Product Transfer

Research & Development

Identify, mitigate and manage risk to ensure successful transition to BAU

INTEGRATION EXECUTION LEGAL DAY ONE TO TRANSITION TO BUSINESS AS USUAL

Acquiring Team

Target Team

Legal Day One =

Merged Team

Business as Usual

Confidential, Separate Plans,

Data, and Processes

Transparent and Combined Plans,

Data, and Processes

Operations fully functional

VALUE VALUE

EMPLOYER BRAND

COMPANY BRAND

EXECUTION

STRATEGY

Business Analysis

Customer Value Proposition Employee Value

Proposition

Capability Analysis

Process Analysis

OPERATING MODEL

ART AND SCIENCE OF COMMUNICATION

Ø Transparency is critical

Ø Phasing of communication must align with planning

Ø Align internal messaging with external positioning

Ø Constantly assess impact of external messages

Ø Direct the ‘water cooler talk’ to desired area of focus

Ø Road shows

Colleagues

Vendors

Customers

Investors

Analysts

LET’S GO TO YOUR QUESTIONS