Scorpion can handle end-to-end M&A planning and post-merger integration for:
• Singular acquisition through corporate consolidation
• Venture capital or private equity target identification
• Highest-and-best value portfolio accumulation
Target Identification and Due Diligence
Scorpion assists with evaluation of how a single company or set of companies may best fit into the strategic portfolio of a given corporate or venture capital entity. We evaluate how the technology offering fits or doesn’t fit the client organization’s market position and value delivery strategy. We then we do an intensive due diligence assessment on the architecture, applications, source code and the relative strengths and weaknesses of the offering versus other competitors in the marketplace. This assessment also calculates total cost of ownership (TCO) and integration for potential acquisitions to avoid surprises later such as major “rewrite” development work to integrate newly acquired systems with existing systems. At the conclusion of due diligence, we indicate whether the potential target delivers the desired value or not. In fact, we create a relative value ranking score on how a particular target company stacks up against other targets, given a deep understanding of the client’s strategic and economic objectives for the target.
Once an acquisition target has been identified and the due diligence process completed, Scorpion assists the client in preparing a merger planning document that:
• Assembles strategic rationale for the acquisition (i.e., market penetration, acquisition of additional customer base and revenue, etc.)
• Identifies synergies to be achieved (i.e., elimination of duplicate or redundant resources, administrative consolidations, systems efficiencies, and resultant cost savings)
• Extrapolates future ability of the combined operation to justify the acquisition premium through operating cash flow contribution within a certain period of time.
A system integration plan is developed after mapping how the combined operations will fit into the business process model. This plan focuses on:
• Merging the chart of accounts between the two operations into a single, GAAP-approved chart of accounts for a unified closing at the time of the official merger
• Mapping both organizations’ process in high-level flow charts and inventorying related systems supported to determine their ability to collaborate or be consolidated effectively.
Once the acquisition has been approved and the above planning efforts are complete, Scorpion manages the execution of the integration, including risk management, change management, development and testing. Scorpion experience and techniques dramatically reduces time to complete the integration, minimizing any disruption to the business.