This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Mergers and Acquisitions (M&A) Target Operating Model (TOM) PPT. Get expert-ready slides for M&A operations, management presentations, and integration frameworks. Download now. M&A: Target Operating Model (TOM) is a 32-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
In an M&A situation, a fundamental question is what the Target Operating Model (TOM) of the resultant organization will look like. This framework addresses the topic of TOM Development in an M&A.
In formulating the Target Operating Model, there are 6 core areas that must be analyzed in an integration between 2 organizations:
1. Vision, Integration Principles, and Critical Success Factors (CSFs)
2. Organizational Structure
3. Process Organization and Core Processes
4. Systems and Technology
5. Property Rights and Contracts
6. Assets
Each area raises its own key question, which can only be properly addresses with detailed analyses and proper due diligence. These core areas a thus discussed in detail in this presentation within the content of a case study.
Additional topics discussed include the TOM mission statement, pitfalls, lessons learned, TOM development approach, integration process, among other topics.
This deck also includes slide templates for you to use in your own business presentations.
This presentation delves into the critical phases of the integration process, outlining a structured approach to developing the Target Operating Model (TOM). The integration process is broken down into four phases, with detailed steps for each phase to ensure a seamless transition. The PPT also highlights the importance of stakeholder mapping and communication plans to maintain alignment and achieve synergy targets.
The case study included provides a practical example of the "To Be" TOM for various functions such as Logistics, Manufacturing, Procurement, Marketing, and Controlling. This real-world example illustrates the application of the framework and offers insights into potential pitfalls and lessons learned. The slide templates provided can be customized for your specific business needs, making this a versatile tool for any M&A integration project.
This PPT slide outlines the integration approach between Company A and Company B following their merger over the first 100 days. Company A is the second-largest player in the automotive diagnostic market, focusing on diagnostic equipment and spare parts in the EU, while Company B ranks third, specializing in test and diagnostic products in the Americas. The integration process includes phases such as the Day-1/Interim Operating Model and Target Operating Model, emphasizing business security and synergy harvesting. Financial metrics like EBITDA for 2018 are noted, along with growth expectations from standalone operations and synergy realization. The future state envisions a merged company as the top player in the automotive diagnostic market, enhancing its global footprint through a complementary product portfolio and optimized technology platforms in North America and EMEA.
This PPT slide outlines a structured approach to developing a Target Operating Model (TOM) during mergers and acquisitions integration, particularly with limited pre-closing information. It consists of 4 phases: understanding the integration blueprint, creating a high-level interim operating model, refining the target operating model post-closing, and coordinating the approval process. The first phase establishes the vision, rationale, and critical success factors, requiring independent assessments of current operating models from both buyer and target. The second phase involves forming hypotheses for the TOM and developing an interim model with buyer team input. The third phase includes workshops to evaluate as-is models and refine the TOM for each workstream. The final phase details the steps for releasing and obtaining approvals for the operating models, ensuring smooth integration and operational alignment post-closing.
This PPT slide outlines 3 critical issues in mergers and acquisitions: "Systems and Technology," "Property Rights and Contracts," and "Assets."
"Systems and Technology" focuses on current and future technological requirements, emphasizing the need for alignment between technological capabilities and strategic objectives.
"Property Rights and Contracts" addresses significant existing contracts and their implications for control and compliance, highlighting the importance of clarity in contractual obligations for operational efficiency.
"Assets" examines current and future asset ownership, access, and usage, which are vital for strategic asset management decisions.
These issues provide essential questions and analyses for effective management in M&A contexts.
This PPT slide outlines critical pitfalls in developing a Target Operating Model (TOM) during organizational integration. A well-defined integration blueprint is essential, articulating the vision and rationale to prevent misunderstandings and misalignment. Including the target and various workstreams in the TOM development mitigates erroneous assumptions about the business model and structure, fostering acceptance of proposed blueprints. The interim operating model emerging during the pre-closing phase may diverge from the final TOM due to limited buyer-side information, necessitating a review of assumptions. Different integration approaches, like "merger of equals" or joint ventures, introduce unique challenges; thus, clear communication and decision-making processes are vital for effective TOM development.
This PPT slide outlines a structured integration process for mergers and acquisitions, divided into 4 phases: Pre-Signing, Pre-Closing, Post-Closing (first 100 days), and Beyond the Deal. The Pre-Signing phase focuses on confirming strategic intent and documenting value drivers, risks, and organizational structure. The Pre-Closing phase aims for "day-1 readiness," establishing the Target Operating Model (TOM) and synergy case, along with change management and a communication plan. The Post-Closing phase prioritizes quick wins and tracks benefits and synergies to minimize disruption. Finally, the Beyond the Deal phase completes integration and identifies operational improvement opportunities, emphasizing the role of a Project Management Office (PMO) to oversee the process and ensure objectives are met efficiently.
This PPT slide outlines 6 core issues for developing a Target Operating Model (TOM): Vision, Integration Principles, Critical Success Factors (CSFs), Assets, Property Rights and Contracts, Systems and Technology, Organizational Structure, and Process Organization and Core Processes. Each area requires analysis to enhance operational effectiveness. Evaluating Assets involves assessing physical and intangible resources, while Property Rights and Contracts focus on legal frameworks governing operations. Systems and Technology highlight the importance of digital infrastructure, and Organizational Structure and Process Organization emphasize aligning human resources and workflows with strategic objectives. This holistic framework illustrates the interdependence of core issues, guiding decision-making and strategic planning for organizational transformation.
This PPT slide examines the organizational structure of 2 companies in a merger scenario, focusing on the Marketing and Service functions. Company A has 143 full-time equivalents (FTE) managed by its president, responsible for marketing and customer service within a designated territory, with support from its European hub. Company B's structure includes a smaller team of 50 managed by the Marketing Director, handling marketing and customer service for its vehicles. The integration will transfer a limited number of employees from Company B to the new joint venture (JV), which will include personnel from both companies. The interim operating model will feature existing staff, with a maximum of 5 employees from Company B, and a new VP Marketing Sales & Services role overseeing the combined teams. The target operating model outlines future sales volume goals and resource needs, aligning with sales ramp-up plans and export opportunities.
Source: Best Practices in Acquisition, Operating Model, PMI PowerPoint Slides: Mergers and Acquisitions (M&A): Target Operating Model (TOM) PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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