- The Story
“He’s never talked about doing this before though. That’s great. The most important thing that you can do to prepare for mediation. Is to attend your intake with the mediator. And to be ready to answer the questions that the mediator may have. In the intake, it is important that you are honest and open about Your worries and concerns. Your hopes for the future, as well as concerns about the process you may have in relation to your former partner. For example, if you’re worried that a former partner may exert pressure on you, But there are communication problems that may get in the way of the mediation. All these are really important for setting up your mediation for success. The other important aspect of mediation is ensuring that you have provided the mediator with all the financial disclosure. That was discussed in your financial mediation planning meeting. This is because without these numbers, it is very hard to come to an agreement on specific issues. And lastly, On the day of on the day of mediation, if you are attending virtual mediation, it is important that you and your partner are not on, are not in the same room, and ideally in different buildings or at the very least different floors of your home. If you are unable to have a confidential space during mediation, please talk to me during the intake, so that we can problem solve about how to manage the mediation process. You will also need a stable internet connection, a working microphone, and a camera. And access to zoom. If you are worried about having access to Zoom, let me know in the intake, and we can set up a time to troubleshoot in advance of the mediation. As previously noted, it’s highly recommended that you get if you don’t have a lawyer that you get independent legal advice uh in advance of attending mediation, although this is not necessary to proceed with your mediation.”
Reduction in duplicative roles, real estate savings, scaled support of business, and capability improvement
Optimization of all goods not for resale, including demand reduction, consolidated spend, and capability improvement
Supply chain network optimization, with synergies across transportation and logistics
In addition to the aforementioned sources of value, our comprehensive analysis revealed additional avenues for Company to capture savings and generate synergies. These included leveraging capability transfers to optimize operational efficiency, rationalizing IT infrastructure to eliminate redundancies, increasing market penetration of own-brand products, capitalizing on cash benefits from disposals, and improving working capital management.
Furthermore, the merger provided Company with enhanced buying power through the combined volume benefits from shared suppliers. This advantage led to a reduction in the cost of goods sold (COGS), further contributing to overall cost savings.
Through our diligent efforts, we identified hundreds of millions of dollars in cumulative synergies that Company could capitalize on following the merger. The company has successfully reinvested a significant portion of these savings into strengthening its brands and fostering continued growth and success.
A closer look at one critical consolidation
One significant aspect of the transformation involved the consolidation of the IT organizations of both companies. Prior to the merger, these IT departments had underperformed and lacked prior experience in managing such complex integration processes.
To effectively execute this change, our team assisted Company in establishing an Integration Management Office (IMO). The IMO played a crucial role in developing a series of deliverables, updates, and a roadmap for their implementation. Working collaboratively with our team, the IMO identified the key processes that required redesigning and formulated a plan for their sequential and cohesive implementation.
Over the course of several months, we guided Companyin defining a new global IT operating model. This involved merging the two IT organizations into a unified function, while also establishing clear roles for regional and global Chief Information Officers (CIOs). Remarkably, Company was able to launch these new processes and teams ahead of schedule, all the while ensuring uninterrupted business operations for its customers in its stores.
By successfully implementing these IT changes and streamlining the organization’s IT function, Company was able to enhance operational efficiency, improve system performance, and leverage technology to support its overall growth strategy.
The power of scale in M&A
Our involvement in supporting the Company merger extended over a comprehensive three-year period, encompassing activities ranging from pre-merger due diligence to post-closing strategy. However, it was during the crucial phase of merger integration that Company began to experience the tangible benefits that result from successfully executing a meticulously planned merger, particularly within the retail industry.
Through the implementation of a new operating model and the consolidation of its organizational structure, Company achieved significant cost savings, precisely as planned and within the designated timeframe. The company successfully attained its synergy savings target, equivalent to 1% of sales. Notably, 14% of these savings were derived solely from IT-related initiatives, underscoring the impact of the IT integration efforts.
Today, Company stands as a prime example of a retail company that has harnessed the operational efficiencies and bolstered competitive positioning promised by the initial merger thesis. The organization has realized the full potential of scale, ensuring a strong foundation for sustained growth and continued success in the dynamic retail market.
* We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
