Avoid the M&A Uh Oh! Moment

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Avoid the M&A Uh Oh! Moment—Have a Plan!27 June 2012

Steven Braud, VP, Finance & Accounting OutsourcingStan Mejia, AVP, Finance & Accounting outsourcingDavid Kaminski, SVP, Finance & Accounting Outsourcing

© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. www.sutherlandglobal.com27 June 2012 2

Today’s Moderator

David is the Senior Vice President of Client Engagement for Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, David has worked as a Partner with Capgemini, and has served as General Manager of Worldwide Financial Services for Microsoft Corporation. During David’s 9 year tenure at Microsoft, his responsibilities were split between running two global businesses as Chief Credit Officer of Microsoft Corporation and President of Microsoft Capital Corporation. David and his team of 400 professionals managed a global asset of $8 billion in more than 180 countries.

David Kaminski, SVPSutherland Global Services

F&A Services

Avoid the M&A Uh Oh! Moment—Have a Plan!


Today’s Speakers

Steven is a Solution Architect with Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, Steven has worked for Fortune 50 companies in Strategy Formulation, Business Performance Management, Accounting, Transformation, General Accounting and Close & Consolidation. He is an industry expert in Order to Cash for outsourcing and has consulted with several Fortune 50 Companies for Cost Reduction, Performance Management, Shared Services, Finance Transformation and ERP Implementations.

Stan is a Transition expert with Sutherland’s Finance & Accounting Outsourcing Practice. With over 30 years of experience, Stan has worked for some of the leading Accounting, Consulting and Outsourcing companies in the world, and was an Accounting Center Controller for one of the nation’s largest retailers. He has a strong background in Consolidation, Transition and Transformation within an accounting organization, and his experience includes serving as the Lead Client Service Representative for several accounting outsourcing programs, including those that require both domestic and offshore services.

Steven Braud, VPSutherland Global Services

F&A Services

Stan Mejia, AVPSutherland Global Services

F&A Services


Today’s AgendaAvoid the M&A Uh Oh! Moment—Have a Plan!

How to Create a Plan for Your M&A Events

Why It Is Important to Have a Sponsor

What Are the Critical Questions to Consider?

Status Quo, Shared Services Center or Outsourcing• Which One Is Right for You?

Standardization—A Solution That Delivers Benefits

Do You Have an Opportunity to Standardize?• Working Example—A Focus on Accounts Payable

How an Outsourcing Partner Can Help You


Level-Setting Today’s Discussion

M&A can be a great way to grow your business It can also bring huge challenges

• According to a KPMG study "83% of all mergers and acquisitions (M&As) failed to produce any benefit for the shareholders and over half actually destroyed value"

Top challenges associated with M&A• Poor strategic fit• Culture clash• Poor communication• Due diligence mistakes• Betting the whole company• Not allocating enough resources• Insufficient Change Management

All of these could relate to not having a comprehensive implementation plan

Our focus today is on having a plan in place to standardize processes and technology in your Finance Department to help drive M&A success


How to Create a Plan for Your M&A Events

Ensure the plan encompasses all project management and process

functions from the point of acquisition to integration

IntegrationDesign

IntegrationDesign

PlanExecution

PlanExecution

Integrationof

Organizations

Integrationof

Organizations

Staffing

Training

QA Implementation

IT Deployment

Facility Readiness

BCP / DRP

HR Planning

Training Planning

QA Planning

IT Planning

Risk Planning

Facility PlanningInitiation/Discovery

Process Mapping

M&ADiscovery

BaselineReview

FormalIntegration

Review

Go Live

OPS Review

Track/Sustain

Shadowing

Govern Engagement

Buildingthe Plan

A plan to integrate two companies is similarto implementing an outsourcing plan.


Why It Is Important to Have a Sponsor

After M&A, the CFO is busier than ever,and likely doesn’t have the bandwidth tolead the charge

A strong sponsor is key to success• A strong sponsor has the authority and

buy-in from key teams and stakeholders to drive the overall project from acquisition to integration, and will:– Expect the unexpected

– Attack bumps in the road right away

– Manage the ongoing nature of the integration process

– Communicate, communicate, communicate

– Report progress to the Senior Leadership Team

– Work through problems to reach resolutions that are best for the organization

– Help lead Change Management and drive values


What Are the Critical Questions to Consider?

What are your expectations?

Are you communicating with your people?

What processes/systems in each organization are best in class?

Are you prepared for system integration and reporting standardization?

Have you identified high-value and non-value activities in each organization?

How will you achieve your business case?

Do you have the right F&A staff (size, number of positions, etc.)?

Are you sufficiently managing risk?


Status Quo, Shared Services Center or Outsourcing—Which One Is Right for You?

Operation Models Post-M&AOperate Businesses

AutonomouslyCreate a Shared Services

CenterPartner with an

Outsourcing ProviderBenefits• Status-quo retained• Change kept to a minimum• Time to evaluate optionsRisks• Status-quo retained• Process and cost efficiency

not realized• System constraints from

disparate systems

Benefits • Labor arbitrage• Process optimization• Economies of scale• Controlled internally Risks • Tactical focus• Realizing transition and

transformation costs• Key staff lost, not retained• Internal change

management

The foundation for long-term success is standardization.

Benefits• All of the benefits of a Shared

Services model PLUS• Process standardization &

best practices• New technology & toolsets• Strategic focus

Risks• Transition timeframe• Knowledge transfer• Challenges of change

management


Standardization—A Solution That Delivers Benefits

Standardization helps integrate M&As in a targeted way and helps management:

• Improve the value F&A delivers to support business strategies

• Make better, smarter, faster decisions that are invaluable in a global competitive market

• Streamline business processes, document retention, real-time access, disaster recovery and security

• Reduce redundant staff layers, processes and costs

• Mitigate delivery risk through simplified points of contact


Do You Have an Opportunity to Standardize?

Are your processes manual and paper-intensive?

Do you have policies and procedures in place?

Do you have redundant positions?

Do you have multiple processes?

Are your G&A costs too high?

Do you have the right technology?

Do you have the right teamin place to drive standardization?


How an Outsourcing Partner Can Help You

Provide best in class solutions to maximize your M&A events

• Develop and implement policies and procedures

• Automate manual processes

• Implement tools and technology to standardize systems

• Optimize non-value activities

• Focus management on strategy and growth

• Provide the right F&A talent


Thank You

Steven Braud—Presenter Vice President, Solution ArchitectFinance & Accounting OutsourcingSutherland Global [email protected]

Stan Mejia—Presenter Assistant Vice President, TransitionsFinance & Accounting OutsourcingSutherland Global [email protected]

David Kaminski—Moderator Senior Vice President, Client EngagementFinance & Accounting OutsourcingSutherland Global [email protected]

mailto:[email protected]



Avoid the M&A Uh Oh! Moment

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