Mergers & Acquisitions (M&A) Consulting
Mergers and Acquisitions are complex and require adequate time, effort, and resources to ensure a positive outcome. Successful transactions begin with identifying and anticipating the opportunities and challenges that lie ahead—most importantly, retaining customers during the transition.
The merging of two or more organizations is complex and fraught with peril. Successful mergers and acquisitions follow a structured and disciplined approach with clear strategic objectives, detailed implementation plans, and a focus on creating and capturing value—enabling the parties to avoid many of the typical failures that impair or destroy shareholder, customer/member, and employee value. That’s why CNJ created a precise and concrete roadmap, which is called the CNJ Methodology, for guiding your whole M&A process from end to end.
Here are CNJ services for you for each stage on YOUR behalf:
- CNJ helps you develop your STRATEGIC plan based on our Risk Analysis of your Readiness.
- CNJ helps you select TARGET companies in USA for Korean companies or in Korea for US companies.
- CNJ helps you conduct DUE DILIGENCE process.
- CNJ helps you NEGOTIATE to get your optimized solutions.
- CNJ helps you INTEGRATE target companies with you according to your strategic direction.
The CNJ M&A Methodology consists of Seven Stages as depicted above.
Successful M&A transactions have clearly defined business values and objectives that can be communicated to all stakeholders, embedded in project plans, measured, and tracked.
These objectives typically reflect the stakeholder value to be gained through the acquisition, and they provide overarching guidance for executing all M&A activities and defining key metrics used to assess success during each stage of the process.
What you get: (Please ask us to get more information)
- Expand into new markets
- Increase share in existing markets
- Acquire new product portfolios and expertise
- Expand/enhance an existing product portfolio and build depth in an area of current expertise
- Increase size to achieve economies of scale
The objective of the target selection stage is to develop a short list of potential target institutions that best meet the acquiring institution’s business objectives and can create value for the shareholders.
What you get: (Please ask us to get more information)
- Define selection criteria
- Develop the screening process and narrow the field
- Develop and execute the approach strategy
The objective of the due diligence stage is to engage potential targets in an effort to assess their interest and to gain greater insight into their potential for supporting the acquiring institution’s business objectives.
What you get: (Please ask us to get more information)
- Due diligence team formation
- Strategic alignment evaluation
- Due diligence assessment
- Valuation and deal structuring
- Integration budget establishment
- Complete regulatory filings
The objective of this stage is to structure a deal that has a high likelihood of creating value for both institutions and achieving the goals set out in the strategy stage.
What you get: (Please ask us to get more information)
- Structuring the transaction
- Conducting the negotiation
- Transaction execution
- Member / shareholder approval
During the Integration Planning stage, each functional area anticipates and plans and prepares for the steps required to merge both companies into a single entity. In addition, the organizations identify all interdependencies and incorporate these into the overall integration program plan. Data is particularly critical to completing the conversion. Given the variety and quantity of data needed to complete this stage, it is best to identify data needs and communicate data requests as early as possible in the conversion planning process. Most importantly, the companies should consider and document any potential impact to customers.
What you get: (Please ask us to get more information)
- Establish a detailed plan and timeline for completing integration planning, reflecting all major elements of the combined company.
- Establish an integration management office (IMO) to lead day- to-day execution of integration planning activities.
- Define the proposed future-state operating model for the post- integration (combined) business entity.
- Establish an integration risk-mitigation plan that addresses areas of the integration process that have the potential to affect the success of the integration—particularly business operating results or the timeline for completing the integration.
- Maintain close alignment with the regulatory filing process
While the focus of the Integration phase is typically on the “Go Live,” a successful integration is the product of several steps: detailed requirements, accurate data/product mapping, controlled system/process development, comprehensive testing, and simulation of integration activities.
What you get: (Please ask us to get more information)
- Implementation kickoff
- Detailed mapping & requirements
- Development conversions & interfaces
- Testing & quality assurance
- Integration training
- Marketing and communications
- Organizational readiness for go-live
he objective of the Steady State phase is to maintain stabilized business operations while capturing value created by the integration. This is a critical time to maintain focus in order to deliver the revenue-enhancing or cost-reduction initiatives designed to capture the primary synergies associated with the integration. This means eliminating redundancies to reduce costs, focusing relentlessly on customer/member experience, and standardizing processes based on leading practices.
Revenue synergies come from cross-selling opportunities, new product offerings, and improved channel capabilities.
What you get: (Please ask us to get more information)
- Develop cross-selling marketing campaigns.
- Conduct customer/member profitability analyses and migrate the least profitable customers/members to lower-cost, higher- revenue behaviors.
- Implement clear fee waiver guidelines and controls.
Cost synergies result from improved vendor pricing, streamlined organization structure, rationalized infrastructure, and improved processes.
What you get: (Please ask us to get more information)
- Rationalize physical infrastructure
- Standardize processes
- Finalize integrated organization design
- Deploy new performance metrics
- Renegotiate vendor contracts and aggressively manage demand
- Develop a common products and services strategy