What is M&A Transition Management?

All M&A transactions require robust, disciplined project management.

Transition Management in its simplest form is the management of transferring 'BAU' services from the selling organisation to the acquiring organisation, such as Finance, HR, IT, Procurement, Supply Chain etc.

 

The required services are identified and defined during the due diligence stage and detailed in the Transition Service Agreements (TSA's) along with including their cost, duration etc. ensuring the seller provides service continuity for the divested business until the acquirer has completed their integration.

 

Integration is one of the most complex tasks undertaken by many organisations, it entails all the risks encountered by a business, plus the additional risks of bringing two businesses together. ​requires significant cross-functional coordination, robust project management of timelines, interdependencies and the explicit pursuit of tangible synergies.

Dedicated skilled and experienced project management resources are required at both the PMO and functional level.

The value of a Transition Manager and PMO Manager

A Transition Manager and Transition PMO Manager will support the sale or acquisition through the deal process from due diligence with complete focus on the Day-1 Activities and 100-Day Plan through to completing integration; coordinating the deal team, operational resource, transition/ integration team and business change.

The role of a Transition Manager or Transition PMO Manager is not part of a typical organisational model, these roles are temporary. They require experienced, disciplined, dedicated hands-on resource with the sole focus to deliver the transition activities unhindered by business as usual distractions and deliver the desired change at the pace defined by each TSA.

M&A Transition Management

M&A

Transition

Management

Services Offered to the Sell-side:

Transition PMO Manager:

The governance of service transition, the set-up and management of the Transition PMO and delivery management of the Day-1 plan, and the 100-day plan. Internal and external status reporting and integration with wider organisational reporting. Oversight and hands-on management of transition delivery, delivery performance, integrated planning and critical paths, management of transition risk, and change control. Financials such as budget vs burn and deviation, service charges, penalties etc. Management of integration change readiness. Advanced services to project managers.

Service offered excludes BAU projects and activities.

Services Offered to the Buy-side:

Transition Manager:

Management of the Day-1 Plan, and the 100-Day Plan. Creation of the Transition Service Agreement for each service to be provided by the seller (see Transition Service Agreement Experience), facilitation of TSA service requirement meetings between the seller and buyer TSA teams, liaising with legal advisors and other third-party vendors, clarification of obligations and consents of third -party service providers where outsourcing is to be subcontracted in the short-term. 

Transition PMO Manager:

The governance of service transition, the set-up and management of the Transition PMO and delivery management of the Day-1 plan, and the 100-day plan. Internal and external status reporting and integration with wider organisational reporting. Oversight and hands-on management of transition delivery, delivery performance, integrated planning and critical paths, management of transition risk, and change control. Financials such as budget vs burn and deviation, service charges, penalties etc. Management of integration change readiness. Advanced services to project managers.

Experience:

Day-1 Plan

Experienced in the creation and management of the Day-1 plan activities and rules for how key processes and systems will continue to operate while integration progresses, managing key decision that must be made before closing and process gaps that need to be addressed. 

100-Day Plan, and Service Transition Delivery

The 100-day plan should be the primary deliverable of the due diligence. Therefore the 100-day plan should be focused on "how" to realise targeted synergies and deal drivers identified during due diligence. Experience working with the senior leadership team to drive accountability for deal success and achieving targeted synergies. Experienced working with Legal, finance, HR, Technology, Operations etc. (see below grid), translating value drivers into the 100-day plan, and delivery of transitional services.

It is in the interests of both the seller and the acquirer to transition the services as swiftly as possible, as this will typically result in the most efficient, effective transition with the smallest risk to operational services and customer fulfilment.

 

Experienced in the creation of Transition Service Agreements encompassing the following elements:

TSA Elements:

  • Scope of services

  • Service description

  • Service quality

  • Service period, initial, extension permissions, long-stop

  • Service pricing, reverse charges and penalty charges

  • Cross-charges

  • Third-party contracts

  • Linked services

  • Dependent services

  • Reversed services, IT and non-IT

  • Key service contacts

  • Exclusion of services

  • Processing of personal data

600 Consulting Expertise

John Bennett is a specialist in leading and managing successful M&A Service Transition for either the seller, or acquirer under their buy and build strategies.

 

Joining the deal team at the due diligence stage, to shape and manage the delivery of the Day-1 plan, the 100-day plan and Transitional Service Agreements.

 

Oversight and hands-on management of delivery teams, legal advisors, consultancies and other third parties. Specific focus on the creation of the Transitional Service Agreements (TSA's), and service transition/ integration. Set up and manage the Transition PMO, management of service transition and risk, ensuring continuity of operations. 

 

At the end of the transition/ integration period, the contract for services is concluded.

Image by Ant Rozetsky

Facilities

Asset Release

Contract Novation, Termination

Office wind-up/ Set-up

Manufacturing Relocation

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Operational Services

Emergency Response Centre

Service Centre Call Handling

 

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Risk and Compaliance

Risk and Compliance

Variety of Coins

Finance

Contracts held under Finance

Finance Business Partners

Tax

Trade Ledger

Contract Review

Procurement

3rd-Party System Access

Contract Separation

Reporting

Truck and Warehouse

Supply Chain

Fleet Demerger/ Replacement

International Supply Chain Resource

Logistics & Distribution Services

Route Optimisation

Warehouse Rationalisation

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Human Resources

Employee Relations 

HR & Reward systems and data

Learning & Development

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Real Estate

Office Lease Separation, Novation

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Technology

Data Centre Hosting Services

Middleware Services

Network Services and IP Telephony

Application Services

Security Services

End-User Services

Service Management

Service Transition Delivery