Six Leading Practices for a Successful Post-Merger Integration

Are you resourced for an efficient and effective post-merger integration?

Few mid-sized companies are equipped with all the people, processes, and technology integral to achieving valuable post-close results — not to mention, the ability to handle data, applications, and infrastructure to integrate the new company and drive the multiples you’re expecting.

Depending on the scope and scale of the transaction, what happens from Day 1 to Day 120 can vary greatly. A wellexecuted and communicated plan for that critical transition period can help reduce delays, unnecessary costs, and longterm unfavorable consequences. For a smoother handoff from the deal team to the integration team, think about these six priorities when planning the days following the close:

1. Document everything and assume nothing. Memorialize the value creation strategy. What is the integration approach? Where is the value? And what’s the timeframe to realize this value? When these factors are defined, the integration team can set the right priorities and repeatedly communicate those priorities throughout the early integration phase.

2. Prioritize consistent communication between key players. The right hand needs to know what the left hand is doing. That does not mean constant meetings between every member of the M&A team, but the moving pieces — e.g., M&A leaders, operations personnel, and the finance team — must regularly sync with each other. Set an early expectation for communication cadence.

3. Agree on the ultimate goal. Is the goal of the transaction an absorption, a mere holding, or a true integration? Agreement on the end game can create a solid common strategy, quiet the noise around non-priorities for the near term, and universally define what success looks like in 0 –90 days, 90 – 120 days, and beyond.

Written by: Amy Moore CLA Principal

4. Realistically assess team skills and what’s missing. In smaller companies, everyone on the integration team has a day job, and few have the experience or bandwidth to handle one-time tasks and niche elements of M&A. For most companies, it’s the first time they’ve been through such a transaction and the learning curve is steep. If you don’t have time for training or to do the job efficiently, consider contracting outside talent that regularly handles these types of transactions.

5. Make the target visible. What do new stakeholders expect to see in terms of reporting? In order to keep stakeholders properly informed, the integration team needs operations diligence and a plan for data amalgamation.

6. Understand (and respect) the culture. Every transaction will affect people — employees, customers, partners, and suppliers. Recognize the impact, plan for it, and communicate what you know when you know it. Focus on value creation for each audience.

As early as possible, right-size the project team with a collaborator who understands the nuances of the middle market, has nimble processes, a broad range of knowledge and expertise, and — most importantly — the ability to execute.

For more information on post-close transaction strategies, contact Amy Moore at amy.moore@CLAconnect.com or 781-402-6346.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CLA) to the reader. CLA is an independent network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

REBECCA O’CONNELL

Rebecca O’Connell was appointed to executive vice president and New York City metro market executive at Citizens Bank.

O’Connell has more than 25 years of experience as a banking executive and senior management consultant.

Before joining Citizens, she was managing director-region head, NYC metro, Long Island, in the apparel industry group at JPMorgan Chase.

She previously held roles of increasing responsibility with Bank of America as senior vice president, global commercial banker and director and working capital advisor, northeast region.

Dave Shephard

Seattle-based lower middle-market private equity firm Rainier Partners hired Dave Shephard as director of portfolio operations.

Before Rainier, Shephard worked at Bain & Co., where he managed teams focused on private equity due diligence and strategic challenges for leading companies across the consumer, technology and industrial sectors.

Before that, Shephard served as a combat arms officer in the U.S. Army where he held a wide variety of strategic, operational and leadership positions.

David Prendergast

New York-based private equity firm Enhanced Healthcare Partners named David Prendergast to principal, head of business development.

Prendergast joined EHP in 2019 and was vice president of business development before his promotion. Prior to EHP, Prendergast served as vice president of business development at Waud Capital and as a vice president at Great Point Partners. Before that, he worked as an associate at Summit Partners.

Maryland-based private equity firm FVLCRUM Funds hired Jason Lee as vice president. He will focus on managing FVLCRUM’s legacy portfolio and provide due diligence and portfolio company support for the current fund.

Lee recently worked as a managing partner at First Alta Management. He held several titles there, including interim chief financial officer and board member of Spineloop, a medical device company, and strategic adviser of Pure Vita, a tech-enabled medical supply company.

He also served as managing director of Muirfield Management Group, a Los Angeles-based family office, where he was responsible for joint venture partnerships investments and growth strategies across a broad spectrum of industries and verticals.

Michael Nelson And David Gau

Chicago-based family investment firm Pritzker

Private Capital (PPC) named Michael Nelson as managing partner and David Gau as chief operating officer. The duo replaces Paul Carbone, a co-founder, president and management partner, who is stepping down from day-to-day management of the firm.

Nelson was previously head of investing at PPC where he led the sourcing and execution of new partnership opportunities with growth-focused middle-market businesses in the firm’s core sectors. In his new role, he will continue to lead PPC’s investing efforts and will oversee the firm’s investing and partner relations teams.

Gau was partner and head of operations before his promotion. He will continue leading PPC’s team of operating professionals and will oversee the firm’s internal operations team.

Nelson joined Pritzker Private Capital in 2012. Prior to that, he was a managing director at Chicago-based middle-market private equity firm Wind Point Partners, where he led investments in the specialty manufacturing and packaging sectors. Gau joined PPC in 2014. Before that, he was the chief executive officer of Intersystems, a manufacturer of material handling equipment for agricultural and industrial applications.

Matthew Hudson And Spencer Lippman

Global investment bank Houlihan Lokey hired Matthew Hudson and Spencer Lippman as managing directors in its business services group.

Hudson is leading a dedicated sector coverage team in Baltimore, while Lippman is based in the Houston office.

Before joining Houlihan Lokey, Hudson was a managing director and head of rental services investment banking at Oppenheimer & Co. He was also a director at CIBC World Markets and vice president at FBR Capital Markets. Before that, he worked as an associate at Deutsche Bank.

Prior to joining Houlihan Lokey, Lippman was the managing director in the rental services investment banking group at Oppenheimer & Co. Before Oppenheimer, he was an associate at Genesis Capital and an analyst at Silverton Capital Corp.

Before joining Piper Sandler, he was a managing director, covering the automotive aftermarket industry at Lazard for more than 10 years. He started as an associate at Lazard and was promoted several times, eventually holding the managing director title when he left.

Prior to Lazard, he was an associate customer account manager at Epicor Software and a national account representative at Black Box Network Services.

Douglas Palmer And Thien Van Tran

Tysons, Virginia-based middle-market investment banking firm Ascend Capital Group appointed Douglas “DJ” Palmer to managing director and Thien Van Tran to director.

Palmer has worked in global M&A, corporate strategy, private equity and investment banking for about 15 years.

At Ascend, he’s held many titles, including director and vice president. He’s currently an official member of Forbes Financial Council. Prior to Ascend, he worked as an investment banking associate at District Capital Partners, as an investment banking associate and investment banking analyst at Evergreen Advisors, as a senior associate and associate at PricewaterhouseCoopers and as a financial analyst at Deloitte.

Van Tran has spent 10 years focusing on M&A, capital raising, corporate finance and investment banking at a variety of firms.

Prior to Ascend, Van Tran was vice president in investment banking at Evergreen Advisors and a management associate at Regions Bank. He began his career as a mechanical engineer at the Space and Naval Warfare Center.

David Brown

David Brown recently joined investment bank Raymond James as managing director and head of strategic limited partner relationships. For more than 20 years, Brown has worked with private fund sponsors and limited partners.

Before joining Raymond James, he spent eight years with Moelis & Co.’s private fund advisory business, serving as the head of North American distribution. He was also the co-head of private equity and real estate advisory at Greenhill & Co.

Prior to Greenhill, he worked in the private funds marketing team at Lehman Brothers and as head of public funds distribution at New York Life Investment Management.

Shari Young Lewis

Chicago-based private equity firm Cresset Partners hired Shari Young Lewis as a managing director in the private funds group. She is focusing on private equity funds and co-investments across buyout, platform buy-and-build and other control-oriented strategies.

Before joining Cresset, Lewis was a partner in the private equity practice at Aon Investments. She focused on buyout, growth equity, venture capital, private credit and infrastructure investments.

She is an Illinois Growth and Innovation Fund council member and she’s on the Midwest Steering Committee for the Women’s Association of Venture and Equity. She’s also an active member of the Private Equity Women’s Investor Network and serves on the board of directors for the Little Giraffe Foundation.

DREW MOLINARI, NICK STONE AND LISA VULIC

Cleveland-based private equity firm Cyprium Partners promoted Drew Molinari and Nick Stone to partner and Lisa Vulic to chief financial officer and chief compliance officer.

Molinari joined Cyprium Partners in 2008 and has more than 18 years of experience in mergers and acquisitions and private equity. Before joining Cyprium, he was associate, corporate development, at Agilysys and an analyst at Brown Gibbons Lang.

Stone has been with Cyprium since 2007, leading the firm’s origination and marketing activities since 2016. He’s held various titles at Cyprium, including managing director, director and principal. Before joining Cyprium, he was a director at Key Principal Partners.

Vulic joined the firm in 2004 and has held various positions since then, including senior accountant and controller. Before Cyprium, she was a senior accountant at Key Principal Partners, corporate tax analyst at Ceres Group and tax compliance specialist at Ernst & Young.

Louise Husin

Palo Alto, California-based private equity firm

HGGC named Louise Husin as chief talent officer, a newly created position.

She will manage all aspects of talent acquisition, talent management and development, organizational planning and employee engagement and will oversee HGGC’s diversity, equity and inclusion initiatives.

For more than two decades, Husin has worked for major companies and private investment firms in talent management, recruiting, leadership development, DEI and C-suite hiring.

Before HGGC, she worked at private investment firm Freemont Group, where she was the chief people officer. She also held roles as the human resources director at BlackRock, human resources manager at Williams-Sonoma and human resources manager at Bechtel Corp.

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