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Ensuring complex carve-out integration remains on track, on budget (CS288)

MP_cs287 (1)

 

This story is for CEOs who

  1. Lack the experience and resources to fully integrate a partial or full merger
  2. Need to guard intellectual property during a carve-out or merger
  3. Need an expert third party to resolve issues between all the interested parties

The Challenges

A prime defense contractor acquired a business unit from another defense contractor—and found itself without the internal resources to handle the complex carve-out integration. Along with the buyer’s and seller’s legal, finance, quality, operations, and engineering teams, the integration involved the DOD Contract Management Agency. A tangle of intellectual property issues made the project even riskier.

The buyers turned to SGS Maine Pointe for our M&A, project management, defense industry, and supply chain expertise to keep the integration on time and on budget.

 

Driving complex carve-out integration with people, data, and network analytics

SGS Maine Pointe:

  • Coordinated various parties to the carve-out and the various workstreams, breaking down silos and clarifying roles and responsibilities
  • Provided full IT data integration management, ensuring consensus among all subject matter experts on next steps and expediting completion
  • Built customized reporting and tracking systems; and developed an action log for each part of the engagement
  • Clarified specifications to ensure consistency within categories and across sites
  • Created a risk register to identify risks, their relative costs, and mitigation steps to prevent expensive consequences


Lessons learned for other executives

  • In a carve-out or merger integration, the roles, interests, and responsibilities of multiple parties must be clarified and monitored closely to ensure everyone drives forward
  • The risks in transferring people, data, equipment, and intellectual property can be avoided
  • A successful integration requires expertise in data analytics, capacity and network planning, supply chains, budgeting, and risk assessment

The Results

  • Complex carve-out integration completed on time and on budget
  • Over 100 potential risks mitigated
  • $3.6M in losses in prevented
 

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