Finance Integration: Deliverables and Risks Overview PPT

This PPT slide, part of the 157-slide Post Merger Integration (PMI) Handbook PowerPoint presentation, outlines critical deliverables and potential risks associated with the Finance Sub project teams during a merger or acquisition. It emphasizes the importance of establishing a clear finance structure, which includes defining the finance "charter" and scope, as well as detailing the target organization at various levels—global, regional, and local. The slide highlights the need for comprehensive job descriptions for key finance roles such as controllers, financial analysts, and accountants, ensuring clarity in responsibilities within the newly combined entity.

Documentation of finance processes is also crucial, particularly for global and regional consolidation. This involves assessing the technological requirements to support the finance team and selecting appropriate platforms for management and accounting systems. Planning for the integration effort is emphasized, focusing on teams, systems, and processes.

Next year's budgets are mentioned, indicating a need for pro-forma integration that considers both integration costs and potential synergies. The slide also addresses the importance of aligning finance policies across the merged entities, including capital requirements and target cash management strategies.

On the right side, critical risks are identified. These include the necessity to comply with country-specific reporting requirements and the timing of budget approvals from shareholders. There’s also a mention of creating new activities from scratch in certain locations, which may have previously been outsourced. This highlights the complexities involved in merging finance functions and the potential pitfalls that need to be navigated carefully.

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