Structured Approach to Target Operating Model Development PPT

This PPT slide, part of the 32-slide Mergers and Acquisitions (M&A): Target Operating Model (TOM) PowerPoint presentation, outlines a structured approach to developing a Target Operating Model (TOM) during the integration process of mergers and acquisitions, particularly when access to information is limited prior to closing. It is divided into 4 key phases: understanding the initial basis, developing an interim operating model, developing the target operating model, and coordinating and approving the model.

The first phase emphasizes the need to establish a clear understanding of the integration blueprint, including the vision, rationale for the deal, and the critical success factors. It highlights the importance of independent assessments of the current operating models from both the buyer and the target or joint venture partner. This foundational understanding is crucial for setting the stage for subsequent phases.

In the second phase, the focus shifts to creating a high-level interim operating model. This involves forming hypotheses about the target operating model for each function and developing an interim model with input from designated members of the buyer’s team. The summary of results from this phase will guide further development.

The third phase is about refining the target operating model post-closing. It includes conducting workshops for each function to present and discuss the as-is models, evaluate hypotheses, and detail the TOM for each workstream. This collaborative effort ensures that all stakeholders are aligned and that the model reflects the combined strengths of the entities involved.

Finally, the fourth phase addresses the coordination and approval process. It outlines the steps for releasing the operating models, obtaining approvals from various management levels, and presenting the models to relevant project members. This structured approach is essential for ensuring a smooth integration and operational alignment after closing.

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M&A (Mergers & Acquisitions) Target Operating Model Critical Success Factors Joint Venture M&A Workshops