WEBVTT

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The success or failure of an
integration is often measured by

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whether synergy targets are met.

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These synergies play a crucial
role in financing the deal,

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funding business growth, and
meeting shareholder

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expectations.

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That's why it's vital that
integration leaders follow a

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rigorous value capture planning
process.

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We have four core beliefs about
value capture planning.

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First, it's important to set
ambitious aspirational targets

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for the integration teams.

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These targets should represent
exceptional value creation.

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Individual team targets should
be set using a de-averaged

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approach that considers each
function's starting point and

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what it needs to drive the
business going forward.

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Second, speed is your friend.

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Take advantage of the focus and
momentum that deals generate to

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move quickly towards realizing
value.

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Companies can accelerate
value-creation by developing

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detailed synergy plans during
the pre-closing

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period, using clean teams as
necessary.

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Third, be bold and apply a
transformational lens to

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post-merger planning.

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We find that organizations can
unlock significant value by

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using the integration process to
tackle core inefficiencies and

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deliver step change
improvements.

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Fourth, plan revenue synergies
just as rigorously as cost

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synergies.

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Don't assume that revenue
synergies will just show up

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automatically in next year's
business plan.

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Assign specific revenue synergy
targets to individual businesses

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and products.

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Assemble a multidisciplinary
group of leaders to assess and

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prioritize revenue synergy
opportunities and make sure that

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functions including operations,
IT, and HR are prepared to

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support and enable the sales
team to sell the new product

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set.

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It is important to diligently
track the implementation and

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realization of value capture
plans.

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By building value capture
commitments into business plans

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and then tracking progress on
those commitments, organizations

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can drive accountability and get
an early warning if any

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initiatives go off track.

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Taking these actions on value
capture can help ensure a

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successful integration.