Deploying finance resources intelligently in a merger is a process that begins prior to the deal with anticipation of all the roles the group is likely to play. It is critical to develop an overall blueprint with a clear timeline that lays out what decisions will have to be made and when. When a CFO prepares in this way, he or she is in a unique position to help the CEO realize the value that all too often slips through the cracks of a merger.
A merger can be a hair-raising experience for unprepared CFOs — pushing their finance organizations beyond the breaking point. We have worked with and learned from CFOs and companies that have managed mergers the right way, and their experience provides a positive counterpoint to the generally dismal results mergers produce. With nobody else in the position to do so, CFOs should lead the organization not only in selecting the merger partner, but in ensuring that the expected value of the transaction is realized. Having taken the right steps beforehand, the chief financial officer should be ready to meet these new challenges in a disciplined way.
Frank Galioto ([email protected]) is a principal with Booz Allen Hamilton in Chicago. He assists clients with organizational transformation, finance and corporate headquarters effectiveness, corporate planning, and performance management.
Cindy McNeese ([email protected]) is a vice president with Booz Allen Hamilton in Chicago. She focuses on helping clients develop high-performance information technology environments.
Gerald Adolph ([email protected]) is a senior vice president with Booz Allen Hamilton in New York. He specializes in mergers and major restructurings.