Understanding Your M&A Challenges 

Throughout our many years working in this space we know that transition struggles with substantial post M&A integration is not uncommon; the nature of the issues just differ depending on industry. When we initially engaged with a Fortune 200 retail client, we immediately uncovered several challenges they would face as they tackled this transition, namely:

  • The cost of the large consulting firm they were using was not sustainable over the likely duration of the integration, and the planning versus execution skill sets were not really what was needed to proceed 
  • There was much larger redundancy in suppliers, products, and facilities than had been considered in pre-close due diligence 
  • A clear understanding of the integration plan, roadmap process, one-time cost tracking, and synergy attainment did not exist 
  • Time and attention spent on the integration process by key business operators severely putting to risk continuity of day-to-day operations 

With a commitment to shareholders to deliver $600 million in recurring annual synergies,the client struggled with the assembly and alignment of transitioning from the “what” and “when” stages to developing the “how” plan; those first steps as to where to begin remained elusive.

Achieving Success Through Partnership 

The end result of this integration well-exceeded the original expectations in the clients’ acquisition thesis. They hit targets before deadlines, improved integration efficiency, and in the end, our contributions were recognized through their awarding to ESG their Partner of the Year status.

Other concrete results included:

  • $750M annual recurring synergy realization in under three years (a 25% overachievement)
  • Rationalization of hundreds of thousands of SKUs
  • Conversion and / or closure of 21 distributions centers

The Right Partner Makes All the Difference

As we have learned, the only way through tough M&A challenges is bold and decisive action, but few companies are equipped to tackle these problems the first time they come up against them. This is where ESG makes our most substantial contributions with our clients.

Author

Mark Newhall

Founder of ESG

Other Blogs
March 31, 2017Untangling complex business tie-ups In mergers and acquisitions of big companies, the bankers and lawyers who put the deals together are not the ones who have to make them work, says the founder of Denver-based consulting firm Execution Specialists Group (ESG). Mark Newhall, founder of ESG, is the guy companies call after the M&A contracts have been signed. They want his insights on how to organize and blend the newly merged companies so they don’t waste time. “With any large firms that come together, it’s the underestimation of just how complex it is,” Newhall said. “Some of them get caught on systems. Many get caught on culture.” In 2016, Forbes named his company a “top management consulting firm,” and in March, ESG was recognized by Florida-based Office Depot Inc. (Nasdaq: ODP) for three years of work following its mega-merger with OfficeMax. Newhall opened ESG eight years ago after he helped grow the Dutch company Corporate Express from $40 million into an $8.5 billion company as its vice president of global strategy. In 15 years, Corporate Express acquired more than 600 companies. “My job was how you put 600 companies together to create one customer experience, one value proposition across 28 countries and 50,000 employees,” he said. In 2008, Corporate Express sold to Staples Inc. (Nasdaq: SPLS) for $2.6 billion. “For me, that was a 15-year project,” Newhall said. “We built a company and did what we were supposed to do.” After the sale, he left the company. Then, he got a call from Michigan-based Gordon Food Service, a privately held company and the third-largest food-service distributor in North America. The company had made acquisitions in Canada and wanted counsel on folding in the companies it had purchased. Newhall was reluctant. He worried that he didn’t know the food business, but he took a meeting with them. “About three weeks into it, I had an A-ha moment,” he said. “There is a business here — putting these kinds of businesses together is an acquired skill set.” He realized that no matter what the industry, businesses that merge need to figure out how to organize people and how to motivate them. He knew how. By 2016, ESG had worked with 50 of the world’s largest companies, including a three-year gig with the teams at Office Depot and OfficeMax, which merged in 2013, but just recently completed the integration. “Throughout three years of change, ESG remained a constant,” said Rick DiMaio, vice president of distribution for Office Depot Inc., the combined company. “We recognize that the synergy with ESG has been crucial to our smooth integration of Office Depot and OfficeMax.” This year, Newhall expects to focus on working more with private equity firms, who are funding the acquisitions. They want speed and they don’t want to waste money on a learning curve. “Part of my role is to be extremely objective, functionally neutral between the two companies,” he said. “That is the big part of what we get counted on for – we come in and evaluate what is the thinking and what are the outcomes you want and when.” Printer Friendly Version ESG contact Media Relations mediarelations@esgimpact.com [...] Read more...
April 9, 2019Execution Specialists Group (ESG), a strategy execution-focused consultancy, today announced that the organization has been named by Forbes to its list of America’s Best Management Consulting Firms for 2019. 2019 marks the fourth consecutive year that the talent and performance of ESG’s people has been recognized on Forbes’ annual ranking of the highest rated consultancies across all sectors and functional areas. ESG is among just over 200 management consulting firms nationwide to earn a spot on the list and the only firm headquartered in Colorado. “We’re really proud to receive this continual recommendation from clients, peers and senior partners.  It’s our people who have earned this recognition and with the team’s combination of skills, talent and depth of proven  experience, we continue to deliver on our unique value proposition,” said Mark Newhall, founder and CEO, ESG. “ESG is extraordinarily well-positioned. Our people continue to be sought after to plan and deliver on  complex acquisition integration and rapid digital transformation initiatives.” To compile its list, Forbes partnered with market research company Statista to survey partners and executives of management consultancies, as well as senior executives who had worked with such firms over the last four years. Respondents were asked to recommend consultancies across predetermined sectors and functional areas and firms with a disproportionate number of recommendations were organized into star ratings.  The ratings are taken from more than 1,000 clients and more than 7,5000 other management consultancies.   About ESGBased in Denver, Colorado, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex post M&A integration and digital transformation objectives. Recognized by Forbes as one of America’s “Top Management Consulting Firms” for the past four years (2016-2019), ESG clients include Advance Auto Parts, Caesars Entertainment, Gordon Food Service, Office Depot/OfficeMax, Target Corporation, Whole Foods and more. To learn more about ESG, visit www.esgimpact.com Media ContactJennifer Levasseur(720) 235-0816 x399mediarelations@esgimpact.com Printer Friendly Version [...] Read more...
August 8, 2017Execution Specialists Group (ESG) is pleased to announce the expansion of its executive advisory team with the appointment of Jay Mutschler.  Mutschler brings a proven track record of dealing with business challenges and improving performance in sales and profitability growth through building brands, invigorating teams and transforming underperforming businesses into thriving ones. Mutschler’s distinguished career includes senior executive roles around the world with Staples, Corporate Express, US Office Products, Office Depot, and Eastman Office Products Corporation. Most recently, Mutschler served as President of Staples’ High-Growth Markets, where he developed emerging markets in Asia Pacific and Latin America.  An iconic leader in the office products industry for more than 30 years, in 2011 he was honored by the City of Hope with their prestigious Spirit of Life Award for his business and philanthropic accomplishments. “I have had the privilege of knowing and working with Jay since he joined Corporate Express’ senior executive team in 2001. Much of the ESG value proposition we deliver to clients today is based on my close work with Jay and his Corporate Express / Staples executive team,” said Mark Newhall, Founder and CEO of ESG. “I am thrilled to have Jay bring his transformative leadership experience to ESG and to our clients.” “Having spent my career dealing with large, complex organizations where addressing integration issues following acquisition required complex business transformation, I’m excited to share my knowledge and expertise with ESG client leaders,” said Jay Mutschler, Senior Partner of ESG. “I’m anxious to start working with clients leading turnarounds and transformations, driving organization and cultural change, opening new and emerging markets, revitalizing marketing and sales strategies, maximizing organizational effectiveness, re-engaging employees and elevating performance.” Throughout his career as a senior executive in roles such as President, CEO and Board Director, Mutschler has been the chief architect of successful business transformations for multiple companies in multiple countries and is an expert in post-merger restructuring and integration, as well as an advisor to boards, private equity firms, and venture capitalists. About ESG Based in Denver, Colorado, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex integration, transformation, and innovation objectives. ESG relentlessly focuses on delivering meaningful client outcomes and leaving behind a culture of execution. Recognized by Forbes as one of the “Top Management Consulting Firms” for the past two years (2016 and 2017), ESG leaders have managed hundreds of integrations across all functional disciplines including sales, merchandising, supply chain, marketing, real estate, technology, human resources and finance to deliver disciplined program design and execution. Clients include Caesars Entertainment, Gordon Food Service, Office Depot/OfficeMax, Staples, Target Corporation, Whole Foods and more. To learn more about ESG, visit www.esgimpact.com   ESG Media Contact: Jennifer Levasseur (720) 235-0816 x399 mediarelations@esgimpact.com [...] Read more...
March 25, 2021With transformational goals back on the agenda, customers and peers continue to recognize ESG for its domain expertise in the area of supply chain management Execution Specialists Group (ESG), a strategy execution-focused consultancy, today announced that the organization has been named to the Forbes list of America’s Best Management Consulting Firms for 2021 for the sixth consecutive year. ESG is one of just 230 management consultancies nationwide to earn a spot on the list and is among only 31 firms included in the supply chain management category. This latest recognition follows one of the most challenging years for American businesses in decades, during which ESG continued to demonstrate its strategic value to companies looking to optimize their customer experience through the effective digital transformation of their supply chains.  “It remains a tremendous honor for ESG to appear among the short list of management consultancies recognized by Forbes, particularly as the ratings are taken directly from both clients and other firms that understand the unique business challenges brought forth by the global pandemic and its aftermath,” said Mark Newhall, founder and CEO, ESG. “In today’s environment businesses have  been challenged like never before. Through our deep domain expertise and decades of experience we have been able to help companies to not only optimize their supply chains but to leverage best practices across the customer experience spectrum to transform them into competitive differentiators in the market.”   To compile its list, Forbes partnered with market research company Statista to survey partners and executives of management consultancies, as well as senior executives who had worked with such firms over the last four years. Respondents were asked to recommend consultancies across predetermined sectors and functional areas and firms with a disproportionate number of recommendations were organized into star ratings.  Launched in 2008, ESG has achieved year-over-year growth by offering executional expertise to plan and implement client roadmaps to success. The firm’s cross-functional team has expanded to include a diverse set of specialists at multiple levels and across a variety of industries. In a time of transformation, ESG exists to champion change by providing a practical independent perspective that picks up where strategy leaves off, architecting and executing targeted outcomes for complex cross-functional initiatives.  About ESG Based in Denver, Colorado, and with operations in Chicago and Boston, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex integration, transformation, and innovation objectives. ESG relentlessly focuses on delivering meaningful client outcomes and leaving behind a culture of execution. Recognized by Forbes as one of the “Top Management Consulting Firms” for the past six years (2016-2021), ESG consultants  have led hundreds of post-M&A integration initiatives across all functional disciplines including sales, merchandising, supply chain, marketing, real estate, technology, human resources and finance to deliver disciplined program design and execution. Key clients have included Caesars Entertainment, Gordon Food Service, Office Depot/OfficeMax, Bridgestone, Target Corporation, Whole Foods and more. For additional information about ESG, visit www.esgimpact.com Media Contact Jennifer Levasseur (720) 235-0816 x399 mediarelations@esgimpact.com Printer Friendly Version [...] Read more...
March 14, 2017DENVER–(BUSINESS WIRE)–March 13, 2017–Execution Specialists Group (ESG) has been awarded the Office Depot, Inc. “Integration Partner of the Year” award in honor of its collaborative integration efforts in the merger between Office Depot and OfficeMax. “Throughout three years of change, ESG remained a constant,” said Rick DiMaio, vice president of distribution for Office Depot, Inc. “We recognize that the synergy with ESG has been crucial to our smooth integration of Office Depot and OfficeMax. The talent and dedication of the teams working on the integration gave us confidence to deliver on our original promise to build a stronger, more efficient competitor positioned to meet the growing challenges of a rapidly changing industry.” After starting its business engagement with Office Depot in 2010, ESG expanded its role in late 2013 to support the company merger with OfficeMax by providing strategic counsel in areas such as merchandising, wholesaler conversion, IMO support, CSO support, operations, and supply chain PMO. ESG has continued its support of Office Depot post-merger to assist in further strategic development with a specific focus on supply chain and sales deployment. “We are honored to receive this prominent award from our valued client that showcases our partnership,” said Mark Newhall, founder and chief executive officer of ESG. “The ESG team has worked alongside Office Depot leadership for years to assist with smooth company-wide transformation, and we are pleased with both the results and collaboration.” ESG received acknowledgement as one of Forbes’ “2016 Top Management Consulting Firms.” Most recently, the firm continues to evolve in both clientele and associates, growing its presence within the industry through the launch of its Making Strategy Happen foundation (MSH), which is focused on providing strategic management consulting to nonprofit organizations nationwide. About ESG Based in Colorado, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex integration, transformation, and innovation objectives. Recognized by Forbes as one of the “Top Management Consulting Firms of 2016,” ESG leaders have managed hundreds of integrations across all functional disciplines including sales, merchandising, supply chain, marketing, real estate, technology, human resources, and finance to deliver disciplined program design and execution. Clients include Office Depot, Salesforce, Google Enterprise, OfficeMax, Staples, Whole Foods, Honda, and more. To learn more about ESG, visit www.esgimpact.com. More information on the MSH foundation can be found at www.msh-foundation.org. ESG Contact Media Relations mediarelations@esgimpact.com printer friendly version [...] Read more...
September 4, 2024Execution Specialists Group (ESG), a strategy execution-focused consultancy based in Denver, CO, continues to expand their cross-industry enterprise artificial intelligence advisory practice for global clientele with the addition of PMO and IT solutions executive Richard Steele.  Formerly the Director of the Central Portfolio Management Office (CPMO) at Charles Schwab, Rich built the organization’s global practice, leading transformational change, organizational change management, PMO operations, risks and controls, tools, financials, and reporting while supporting a $500M project portfolio. In his role, Rich also implemented innovative project and risk management frameworks and Agile best practices, and partnered with IT leaders, finance, and accounting to develop comprehensive resource planning. Throughout his more than 25 years of experience, Rich has also held leadership roles at Lewis Fowler, DaVita, and JPMorgan Chase, and has helped companies define their strategic direction through establishing clear outcomes and measures. “Execution Specialist Group’s large enterprise clients are moving quickly to implement AI solutions, realizing that disciplined planning and execution are as critical with AI-centered technology initiatives as any of the complex initiatives they have previously undertaken, particularly when the technology is a catalyst for massive changes to business and operating models,” Mark Newhall, CEO of Execution Specialist Group emphasized. “At ESG, we continue to invest in resources that shape and support execution of these critical initiatives, just like our clients. We are thrilled to have Rich join our team as our Enterprise AI Practice Leader to support our clients and develop effective AI strategy and implementation planning for sustainable execution.” About ESGHeadquartered in Denver, Colorado, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex innovation and transformation objectives. ESG relentlessly focuses on delivering meaningful client outcomes and leaving behind a culture of execution. Recognized by Forbes as one of America’s Best Management Consulting Firms six times in the areas of Business Strategy and Supply Chain Management, ESG clients include The Adecco Group, Advance Auto Parts, Bridgestone, Caesars Entertainment, DexKo Global, Gordon Food Service, Parts Town, Target Corporation, and more. To learn more about ESG, visit www.esgimpact.com. Media ContactSara Blakelysblakely@esgimpact.com [...] Read more...