M&A Integration to Realize Cost Savings - Case Studies

ScottMadden assisted an energy company with integrating the acquisition of another $3+ billion energy company.

The acquiring energy company purchased an equally large energy company that provided services in another state
The acquisition handling was being closely watched by industry observers and Wall Street
The identification and realization of cost reduction synergies were key elements of this post-acquisition integration
The M&A integration process could not jeopardize the pace of the closing process
The organization design lacked internal measurements to track actual performance

Developed an M&A integration approach in the first 30 days
Established clear integration guidelines up front; variations from guidelines were not accepted, except in rate situations
Engaged consultants who understand the energy industry in facilitation, but solution development was necessarily left to the companies
Identified detailed synergy and integration opportunities in the next 90 days
Devoted subsequent months to organization design and staffing, as well as detailed process integration

The deal closed in record time for the energy industry
Synergies, identified and ultimately realized, met the highly ambitious targets initially announced to Wall Street attendant earnings, and growth targets were in line with estimates
New organization design, staffing, and corresponding processes were in place to support the merged organizations
The acquisition is recognized as one of the few real merger successes in the industry
The company adopted a standard acquisition model (as opposed to a merger model) that accelerated the time frame and reduced the future expense associated with M&A integrations

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