Deal Value
Synergy Target
The world’s largest Interdealer broker
CLIENT PROBLEM
The client underwent a large-scale integration programme (deal value £1.3bn.) with a market published synergy target of £100M within two years. MHC was involved in providing governance and oversight as part of the Integration Management Office, supporting the delivery of this post-merger integration programme, for the world’s largest interdealer broker. MHC’s involvement on the project started at Day 0 (the day a deal gets communicated to the market): it was involved in both the preparation for Day 1 (the official first day two companies were seen as one), the delivery of the 100 Day planning and the entire first year of the integration. MHC was also part of the shift from the integration to the transformation phase.
MHC APPROACH
Day 1 preparation:
+ Set up a new, global organisational structure
The chosen approach was for 12 horizontal workstreams responsible for the various front office and support functions along with 3 vertical workstreams with regional responsibility for EMEA, Asia-Pacific and the Americas.
+ Set up a new governance structure
New committees and reporting lines were built. The Regional Integration Committee, the Front Office Integration committee and the Support Function Integration Committee were three same level committees with workstream involvement, reporting on synergy targets, CTA (Cost to Achieve) numbers and workstream risks and issues. This information rolled up into the Integration Steering Committee, gave the C-suite visibility of the integration progress. The Global Executive Committee reported on the key integration milestones and CTA savings to the Group CEO.
100 Day Planning:
+ The synergy target of £100M had to be broken down to workstream levels and all workstreams had to calculate their synergy targets, new target operating model and headcount reductions along with CTA numbers.
+ Workstream planning. A two-year integration plan linking key milestones to synergy realisations had to be created for each workstream and the progress against the plan was tracked in a waterline PPM tool.
Integration Delivery
+ The programme moved into a steady delivery phase, while reporting against milestone and synergy progress
+ Overall, four waves of RIF (reduction in force) were planned and scheduled and each workstream had to conduct a headcount analysis and critical skills analysis to keep main talent in the company throughout the headcount reduction.
From Integration to Transformation
+ At the relevant time in the work plan, the client shifted from an Integration to a Transformation focus. The key milestones of the Integration had been delivered and change programmes started to be handed over to BAU.
Result
MHC helped the client to successfully deliver the integration and synergy targets in the first year of the transformation.
