Six Sequential Steps of Post-Merger Integration to Ensure Maximum M&A Value

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Follow this sequence of post-merger integration steps that focus on core processes to achieve maximum value for your merger or acquisition:

  1. Align calendars and charts of accounts with acquiring company.
    You will need to do consolidated reporting shortly after the merger (usually within 90 days). Having the same calendar and chart of accounts makes sure that your reporting is consistent and you are accurately reporting your consolidated financial results.
  2. Investigate statutory and regulatory requirements.
    The merger or acquisition has undoubtedly introduced new markets. Investigate your applications to ensure that you are up-to-date with the required localizations and with regulatory requirements of the combined business.
  3. Revalue assets and date placed in service.
    It is a GAAP requirement that the date placed in service is the date of the acquisition and that the value of the assets reflect either the market value as determined by an auditor or the net book value.
  4. Align versions of Oracle E-Business Suite (EBS).
    Different versions of an ERP system increase maintenance and support costs. Do a technical upgrade of your systems so that you will be able to streamline your IT overhead costs.
  5. Consolidate instances.
    A successful merger recognizes synergies between the companies by aligning customer, supplier, and product data to identify cross-sell opportunities and leverage purchasing opportunities. Adding value to the merger starts by consolidating the data, resolving inconsistencies, and reducing the infrastructure costs of multiple instances.
  6. Reorganize within an instance.

     Align ledgers, Legal Entities, Operating Units, and Inventory Organizations to standardize and improve business processes and operations.

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