home My research Vodafone-Hutch Deal – III

Vodafone-Hutch Deal – III

Chapter 3- Methodology

Whenever a general M&A deal is approached the following are the major phases and success of it depends upon below factors

Merger Phase

Critical success factor

Sample elements

Exploratory Phase

Well-defined, articulated business strategy The reasons for the deal are explained
  The degree of integration is defined
  The context for the deal is understood
Clear “product” road map  Offerings are clearly communicated to the marketplace
  Internal efforts are aligned
  A clear branding strategy is in place
Synergies are clearly identified  Cost and revenue are included
  Clear metrics/targets are assigned at the project level
  Strong project management is in place

Due Diligence and Negotiations Phase

Divergent operating principles are addressed Differences are identified
  Proactive steps are taken to bridge gaps
  “Rules of the road” for interaction are defined
Organization acts quickly and decisively Periods of uncertainty are minimized
  Planning is completed before close
  Synergies are aggressively pursued from Day 1
Unyielding focus on customers n Points of contact are clear Attention and support are uninterrupted
  Partnership and channel relationships are maintained
Organization is ready on Day 1 Plans are in place for all functions, businesses and locations
  There is an effective transition from planning to execution
Governance is clearly communicated The board/executive roles are agreed to
  The organization´s structure is defined
  Line management roles are determined
Effective communications to stakeholders Communication takes place early and often
  All stakeholders are considered and reached
  Messages are clear, honest and consistent
Unyielding focus on employees and appropriate retention Key employees are identified and targeted
  Employee morale issues are addressed
  Incentives are utilized where appropriate

Post-Close Integration Phase

Build a new culture Transition teams and ongoing cross-departmental teams interact to plan and implement change
  Team workshops to increase enthusiasm in the new culture
Meet integration and business operation goals Set goals and monitor performance
  create and guide a integration steering committee
  maintain operational and customer scorecards
Business processes that match customer, cost, quality and employee satisfaction goals Tap the best employee ideas from both companies and improve your overall value to customers and shareholders

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