[Nicole Stuart]

We have a newly established Enterprise Integration team which focuses specially on the activities post contract execution. What kind of time frames do you consider in scope for post merger integration before it becomes business as usual. I understand the exact answer will vary for each specific deal, but do you have a high level guide or estimation you use?

[Charles Pederson]

We have a strict 2 year policy to push to the Run the Business. If we can deliver earlier, we will, but our biggest challenge is handing off the integration to the Run the Business teams.

[Miguel Coelho]

Hi Nicole,

That will depend on deal type and complexity. For example, a deal that would be articulated in a strategy that removes industry capacity normally implies a big transaction with lots of complexity vs a deal that would be articulated as acelerate market access and you would prioritise back office consolidation.

However, from my experience, integration teams would be driving the integration at least until Y1, and then handover to BAU teams. This does not mean that integration work is over, but the long lead time items would continue under BAU.

Thanks

[Daniel]

There are obviously a lot of variables driving integration timelines, especially scale but for us our aim is always to integrate a move to BAU by the end of the financial year after the acquisition. So effectively this means 12 to 18 months.

From experience we find that quicker is better to get it out of the way and unlock the combined benefit but it always takes a minimum 9 months to do an ERP integration and we aim for full integration each time.

Plus in certain jurisdictions there are financial reporting requirements around putting appropriate financial controls in place and they often specify that they need to be in place by the end of the financial year after the acquisition.

[Author]

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