Completing an integration process in the context of mergers and acquisitions (M&A) is merely the beginning of a new cycle for the organization. After the initial integration phase, it is crucial to stabilize operations and maximize the value generated by the transaction. Without a structured plan to capture synergies and eliminate waste, many mergers fail to achieve the expected returns, leading to operational losses and missed growth opportunities.

This article explores the key objectives, methodologies, and strategies for developing a robust, future-oriented post-M&A value creation plan.

What is a post-M&A value creation plan?

After completing a merger or acquisition and the integration process, achieving sustainable value creation becomes one of the main challenges for organizations. A value creation plan is a strategy designed to identify, prioritize, and implement operational improvement initiatives, ensuring that the transaction delivers maximum value, and the expected benefits are fully realized.

This plan focuses on executing the improvements identified during operational due diligence and throughout the integration process. Its duration can range from six months to three years, depending on the defined objectives.

Differences between the 100-day plan and the value creation plan

The 100-day plan and the post-M&A value creation plan serve distinct yet complementary purposes in the corporate integration process.

Together, these plans ensure the merger or acquisition drives a lasting and positive impact.

Benefits of implementing a value creation plan

Implementing a value creation plan is essential to ensuring that a merger or acquisition leads to a more efficient, competitive, and sustainable operation in the long run. Without a structured strategy, many organizations struggle with inefficiencies, incomplete integration, and difficulty capturing synergies.

A value creation plan helps maintain operational stability and enables the company to maximize growth opportunities and process optimization.

Enhancing processes

A value creation plan significantly reduces the risk of maintaining outdated or inefficient processes that can limit productivity and impact profitability. It identifies critical operations that need optimization and establishes strategies to eliminate waste, streamline workflows, and enhance quality.

By transforming processes, the organization can achieve a higher level of operational excellence, directly improving its ability to deliver greater value to customers and stakeholders.

Avoiding operational stagnation after integration

Following the initial integration phase, many companies risk losing momentum and falling into operational inertia. A value creation plan prevents this stagnation by establishing a continuous improvement approach that sustains the organization’s growth and competitiveness. Keeping the company in a state of active transformation prevents complacency and the persistence of inefficient practices.

By fostering a mindset of progress and innovation, the Value Creation Plan (VCP) ensures that the company not only preserves the achievements of the merger but also builds a strong foundation for future growth.

Ensuring synergy consolidation

One of the primary goals of mergers and acquisitions is achieving operational and financial synergies. However, without a structured plan, many of these synergies remain unrealized. The VCP mitigates this risk by defining structured initiatives to capture previously identified synergies, assigning clear responsibilities, and establishing mechanisms to track and measure expected gains.

This approach ensures the company fully capitalizes on the transaction’s potential, translating projected benefits into tangible financial and operational results rather than leaving them as theoretical objectives.

Fostering a culture of continuous improvement

Organizational change after a merger can present challenges in employee motivation and alignment. The VCP plays a crucial role in fostering a culture of continuous improvement, where all levels of the organization actively engage in value creation. It encourages employees to identify improvement opportunities, promotes ongoing learning, and supports adaptability to new realities.

By embedding continuous improvement into the company’s DNA, the VCP ensures that achieved gains are sustainable over the long term, contributing to a more agile and competitive organization.

How to develop a sustainable value creation plan

Sustainable value creation after a merger or acquisition requires a structured, results-driven approach. This process involves assessing the current situation, designing solutions, calculating return on investment, and implementing a robust execution plan.

Assessing the current situation

The first step is to define the scope of the value creation plan and establish key objectives. It is essential to determine which areas will be addressed and set GQCDS (Growth, Quality, Cost, Delivery, and Sustainability) goals, ensuring that the plan focuses on business growth, quality improvement, cost reduction, delivery optimization, customer service, and strengthening ESG practices.

Before outlining an improvement plan, it is crucial to understand the organization’s starting point. Some of this groundwork may already be covered if an operational due diligence has been conducted. Reviewing process mapping and available data is fundamental to understanding existing workflows and performance metrics. This thorough analysis enables the identification of improvement opportunities and the prioritization of key areas for optimization.

Designing solutions and calculating return on investment

Once improvement opportunities have been identified, the next step is to develop solutions that drive sustainable and measurable results. A critical starting point is training teams in Kaizen Lean tools, ensuring they have the necessary skills to actively participate in defining the improvement vision. The proposed solutions should focus on eliminating waste, optimizing processes, and enhancing operational efficiency.

Defining the future-state vision establishes the ideal operational model for the organization. To ensure the plan’s feasibility, it is essential to calculate the expected benefits of the proposed initiatives, accurately measuring their impact on productivity, costs, and quality. Additionally, estimating the required investment for implementation ensures that resources are allocated effectively. Finally, calculating the return on investment (ROI) helps financially justify the initiatives and prioritize those with the highest impact and economic viability.

Developing the implementation plan

For improvements to be successfully executed, a well-structured roadmap must be established. The implementation timeline outlines the Kaizen Events to be conducted, the objectives to be achieved, and the deadlines for execution, ensuring steady and well-monitored progress.

Clearly defining responsible teams ensures that each initiative has strong leadership and the necessary resources. A structured plan minimizes delays and distractions, ensuring that improvements are carried out within the established timeframe and with full commitment of all parties.

Executing the value creation plan

The implementation of the value creation plan should be conducted in a structured manner, with continuous monitoring of results. This process is driven by Kaizen Events, ensuring a hands-on, results-oriented approach. Progress is tracked through frequent Mission Control meetings, which provide rigorous oversight of the plan and its key performance indicators. These meetings ensure that goals are met, and deviations are corrected swiftly. Additionally, regular follow-up meetings help maintain strategic alignment and adaptability throughout the implementation, mitigating risks and adjusting actions as needed.

Objectives of the value creation plan

A value creation plan must be developed with clear, measurable objectives to ensure the successful implementation of operational and strategic improvements. The key areas for optimization include:

• Quality: Improving quality is a fundamental pillar of the VCP, ensuring that the newly integrated organization operates at high standards. The goal is to reduce nonconformities, customer complaints, and rework caused by quality issues. This enhances customer experience and strengthens the company’s market reputation.
• Cost: Cost optimization ensures that the merger or acquisition delivers the expected financial returns. Reducing costs can be achieved through increased productivity, improved equipment efficiency, and better inventory management.
• Delivery: Enhancing delivery performance directly impacts customer service levels and overall competitiveness. Reducing lead time improves response times, increases supply chain flexibility, and ensures that customers receive products and services with greater reliability, boosting satisfaction and loyalty.
• Motivation: Increasing employee motivation creates a more productive and strategically aligned work environment. It is essential to foster a culture of continuous improvement, ensuring that employees proactively and sustainably adopt new ways of working.
• Growth: The goal is to create new business opportunities and enhance customer value proposition while driving innovation. This enables the development of new products, services, and business models that strengthen the company’s competitive edge.
• Sustainability (ESG): Embedding sustainability into the VCP ensures that the organization operates responsibly, meets regulatory requirements, and aligns with stakeholder expectations. Integrating ESG (Environmental, Social, and Governance) principles helps reduce operational risks, enhance corporate reputation, and increase business resilience.

Figure 1 – Benefits of implementing a value creation plan

Ensuring an efficient integration for a more competitive organization

A value creation plan ensures that a merger or acquisition goes beyond operational integration to create a more efficient, competitive, and innovative organization. A structured approach helps optimize processes, prevent post-integration stagnation, realize expected benefits, and foster a culture of continuous improvement.

Still have some questions about the value creation plan?

How long does a value creation plan last?

The duration of a value creation plan varies depending on the company’s strategy and complexity but generally ranges between six months and three years. Unlike the integration plan, which focuses on immediate post-acquisition actions, the VCP drives structural and long-term changes to maximize business performance and return on investment. Several factors influence the timeline, including strategic objectives, company complexity, and the scale of changes required. The plan is structured in phases or cycles, with clear milestones and performance metrics to ensure continuous tracking and adjustments as needed.

When should a value creation plan be implemented?

The value creation plan should be designed during the integration phase and implemented immediately after the integration phase is concluded, following the 100-day plan.