Post-M&A integration is critical, as it reshapes the risk profile for both the buyer and seller, requiring careful alignment to ensure the transaction achieves its intended objectives. Failure to adapt the newly combined entity to its updated risk profile can undermine the deal, eroding value through misaligned governance, counterparty risks, and company-wide risk tolerances. This shift often necessitates changes to risk management frameworks, including the establishment of new governance structures, reassessment of counterparty exposures, and recalibration of financial thresholds such as leverage ratios and net debt-to-EBITDA. Integrating best-in-class ERP and TMS systems is pivotal, providing real-time data analytics and critical insights for informed decision-making during a time of heightened complexity. Without this integration, the organization faces risks such as liquidity strain, policy breaches, and ineffective monitoring of cash flows, compounding operational inefficiencies. The complexity is further amplified when the acquired firm’s management team and pre-existing risk processes differ, demanding a unified approach to harmonize strategies and safeguard the combined entity’s financial health.
Pre M&A: Methodologies
To ensure a successful M&A process, it is crucial to implement best-in-class methodologies tailored to the target industry, addressing specific operational, market, and competitive dynamics. Conducting robust risk studies is essential, focusing on key factors such as regulatory compliance, market uncertainties, and operational vulnerabilities. Proactively addressing regulatory concerns, including antitrust, environmental, and financial reporting requirements, minimizes the risk of delays and ensures alignment with industry standards. Structuring an optimal funding profile that balances debt, equity, and liquidity helps support strategic objectives while maintaining financial stability. Assessing the probability of success and failure provides insights into potential integration challenges and helps in prioritizing critical actions. Additionally, evaluating the consequences of failure, including financial, operational, and reputational impacts, allows for effective contingency planning. Leveraging best practices throughout ensures that decision-making is strategic, risk-aware, and geared toward maximizing the probability of post-merger success.
Post M&A: New KPIs
Establishing new operational and financial benchmarks and KPIs post-M&A is a critical step to align the merged entity with its strategic goals and effectively monitor integration performance. Key post-M&A KPIs often examined include revenue growth, cost synergies achieved, EBITDA margin, employee retention rates, customer churn, and integration project timelines. Benchmarking a new company’s KPIs requires several steps: conducting a comprehensive analysis of pre-merger performance metrics, identifying industry standards and best practices, and defining measurable targets that reflect the combined organization’s strategic objectives. It is also crucial to harmonize reporting systems across the entities to ensure consistent data collection and analysis. Many organizations underestimate the post-M&A risk and opportunity profile, leading to unexpected challenges such as operational inefficiencies or regulatory non-compliance, often cited as CFO oversight areas. Conversely, applying best practices in KPI benchmarking can reveal integration gaps, unlock synergies, and enhance overall performance. Our experience with industry-specific post-M&A projects for leading corporations has delivered significant economic benefits, while uncovering hidden risks and driving C-suite awareness. By adopting a structured KPI benchmarking process, organizations can mitigate risks, track progress, and fully realize the financial and strategic value of the merger.
Post M&A: Technology
Post-M&A integration often requires a detailed focus on identifying and implementing new technology needs and benchmarks, a task that is frequently underestimated in terms of the time, resources, and costs required. Technology integration, particularly the synchronization of ERP systems with TMS (Treasury Management Systems) for real-time data flow, is critical for maintaining operational visibility and achieving the strategic goals of the merger. However, this integration is rarely completed immediately. As such, an interim process must be established to identify and address technology shortcomings while ensuring continuity in operations. This process requires thorough resource allocation, including investment in IT infrastructure, skilled personnel, and often significant financial outlay for system upgrades and customizations. Our experience working with leading firms in this area has shown that effective planning and execution in technology integration supports best-in-class risk management processes, helping organizations achieve their risk management objectives and implement robust mitigation practices. By incorporating these interim solutions and fully addressing technology integration in the post-M&A phase, companies can minimize disruptions, manage costs effectively, and unlock the full value of the acquisition.
I am pleased to recommend Erik. During our time working together, Erik expertly transitioned complex projects from planning to successful execution, showing a keen ability to manage both strategic initiatives and detailed financial analyses. His proactive approach in identifying potential risks and developing mitigation strategies greatly benefited our team and our clients.
Joakim Lidbark
Former Global Head of CitiFX Client Solutions
I had the pleasure of working with Erik on several high-level CFO and board projects, spanning capital risk, foreign exchange, global policy, and treasury transformation . His depth of knowledge and keen understanding of corporate priorities are unmatched. Erik’s forward-thinking approach to potential risks, coupled with his adaptability to industry and company-specific nuances, sets him apart. He is also an outstanding communicator, able to connect effectively at all levels of an organization.
Nick Pedersen,
Global Head of Digital – NatWest
I have known and collaborated with Erik Johnson for over 25 years, beginning with our roles as regional treasury heads at Siemens—Erik in Hong Kong and myself in New York. Together, we were responsible for designing, streamlining, and implementing customized processes and protocols aimed at clarifying and managing complex corporate risk profiles across various asset classes, including interest rates, foreign exchange, credit, and commodities. This work ensured alignment with company objectives and risk management practices. Over the years, we have frequently partnered on global hedging strategies for corporate clients. Erik has dedicated his career to advancing the field of treasury risk management, demonstrating an exceptional commitment to deep understanding, integrity, and high professional standards.
Mark Cipollina,
Former CFO Siemens Capital U.S.
I have collaborated with Erik on multiple global risk management C-suite initiatives over many years with several different corporates. His extensive experience as a corporate treasurer provided him with a deep understanding of our needs across various operational areas. Erik delivered a comprehensive policy and risk management framework that aligned with our objectives, while adhering to industry best-in-class practices. His proactive and strategic approach to identifying and addressing risks, combined with his forward-looking insight and ability to embed technology into both current and future needs, sets him apart. I highly recommend him.
Ciaran Fegan, CFA
Senior Director, FX Risk Management & Treasury Strategic Projects at Viatris
I have had the privilege of knowing Erik for nearly 30 years. During this time, and in my previous capacity as the head of foreign exchange trading at leading global financial institutions in the Asia-Pacific region, I have been consistently impressed by Erik’s extensive experience in global risk management and his deep understanding of financial markets across multiple asset classes. Erik displays a disciplined approach to risk management, spanning both emerging and developed markets, and stands out as an industry leader. His strong grasp of macroeconomic themes and expertise in financial risk modeling, allow him to translate complex data into practical, effective risk management solutions that consistently deliver value for his firm and their clients. I am confident in recommending Erik for roles requiring strong leadership, strategic vision, and deep expertise in financial markets and risk management.
Christopher de la Hoyde
Former Head of Foreign Exchange Asia Pacific at RBS
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