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MEDICAL DEVICE AND LIFE SCIENCES INDUSTRY:
Accelerated Acquisition Integration |
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Client: |
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A
large medical device division of a major pharmaceutical company. |
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Problem: |
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The
president of the division was in final negotiations to complete a
large acquisition. The firm had used a major strategy firm in previous
acquisitions and found them to be too analytical, overly rigid, time
consuming and expensive. They wanted a customized approach, aligned
with management structure and philosophies, that would serve as a
role model for the entire integration process. The acquisition required
rapid reorganization, operations and product consolidation, and leadership
and cultural integration. |
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Approach: |
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Create and execute a comprehensive approach merging client and Tunnell
best practices. A governing structure was established with cross-functional
integration teams. Detailed team plans and an overall master plan
were developed, including a systemic change plan used to insure success.
Top strategic issues were quickly identified and resolved, with complete
company reorganization completed in the first thirty days. Additionally,
manufacturing consolidation and technology transfer issues were identified,
product rationalization and market area consolidation were completed,
and R&D capabilities were assessed and reorganized to align with a
new consolidated growth plan. High involvement of personnel from the
acquired company and a continuous communication campaign helped to
quickly integrate leadership and employee cultures. |
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Results: |
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The
accelerated acquisition approach achieved all milestones and synergy
targets ($70 million savings) identified in the deal objectives. Reorganizations,
consolidations, and realigned products, sales and marketing efforts
were achieved in record time. Sales revenue increased $3.2 million.
Supply chains and inventories were reconfigured to maximize expanded
global capabilities and minimize expenses by $1.8 million. The project
was completed with an effective hand off back to the line organizations
thirty days earlier than expected. Surveyed employees were positive
about the newly combined company. |
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