Guidelines on what should be considered when your company acquires another and you're responsible for bring the two networks together.

1. 1+
a strategy for the post-
merger Network
Guide to the operational and
financial implications that
compliments technical
objectives.

2. In your inbox today:
Your company just announced a
major acquisition –

3. the good news:
Acquisitions take 90-120 days to
complete.

4. The Bad news:
Operational and transitional
demands will conflict

5. Assumption #1:
A technical plan will be developed in
parallel.
The 1 + Network Assumption #2:
The final network will go through
changes as it gets revised and
Definition: consolidated.
The new network for a Assumption #3:
changed environment - with All network services and
new users, a new scope and infrastructure will be included.
the accompanying Assumption #4:
modifications that come after This will be a repeated event at
the acquisition of a separate some point in the future.
enterprise.

6. Key Points:
1. Assume liabilities will span operational, technical,
cultural, legal and financial considerations.
2. Expect the unexpected data integrity issues to surface
within both acquired/acquiring organizations.
3. Prepare for conflicts in vendor ownership, contracts,
technical levels and other broken links.
4. Plan for automation issues when attempting to utilize
existing asset inventory systems.
5. Perform a Before and After Study to ensure outcome is
verified and processes are validated.

7. stakeholders:
whose got what?

8. Stakeholders
Merging networks extends beyond IT
Operations
(Sales, Admin,
etc)
Financial HR
Management Management
IT
Managemen
t
(Dir, Techs)
IT
Leadership Vendors
(CIO)

9. Transitional
Strategies
It’s a lot more than just where the wires
go.

10. • The 4 Corners – Get the
Managing the whole picture.
process from a • Inventories – Strong
financial impact data sets add more
perspective – visibility.
• Documentation –
Formalize the process
and add controls.

11. 4 Corners Strategy : Account for everything
Public Physical
All numbers with All locations/sites or
public access. offices.
Paper Internal
All non-public
All services, accounts
connections and
and invoices.
links.

12. Inventories
• Standardization – Merging data from different
organizations will require numerous conversions;
existing, interim and final.
• Linkage – Create a thread to link facilities to
locations to invoices.
• Granularity & Due Diligence – Avoid reliance on
anecdotal information; importing data will hide
important trends and behaviors.

13. Documentation
• Planning
• Strategic Plans, Scope/ Requirements Documents
• Due Diligence (contracts, conditions)
• Inventories (initial)
• Implementation
• Project Management Documents
• Meetings, Calls and Records Documents
• Inventories (interim)
• Change Logs, Checklists
• Compliance
• Bill Validation
• Inventories (final)
• Contract Compliance
• Monitoring/Management Tools and/or Processes

14. The Hump:
The Financial Impact of Conversion Costs
Monthly Cost
Contract Penalty
Network 1 Network 2 Final Network
Budget for overlap: 2.5 months of multiple network costs;
calculate potential contract penalties.

15. 7 Things Companies Do Wrong
1. Quality Data; Insufficient to describe actual conditions and needs
2. Financial Performance; Lack means to accurately measure and
forecast
3. Estimates; Rely on too much for decisions, strategic initiatives
4. Leave unresolved issues; Move on too quickly
5. Resources; Under invest in those devoted to monitor/manage cost
6. Plans & Process; Underestimate the disparity between the two
7. Build Fat Networks; Overbuild based on unsubstantiated estimates

16. Your next steps
Keep it in-house or bring in some help?

17. Numbers
Number of enterprises that don’t
68% proactively manage their network costs.
Ratio of improved financial performance
3:1 of companies with expense
management process vs ad hoc effort.
$36 Total impact per dollar over contract life.

18. Value Proposition
• Low Cost/High Yield – A&I ROI averages 5:1 or
more through sustainable savings
• Productivity – A&I enables client resources to focus
on more critical efforts
• Value – A&I helps change the culture through
awareness
• Transparency – A&I provides insight into key
trends, patterns and behaviors in your business
• Answers – A&I is a partner in the decision process

19. technology made simpler
Call us at 412 221-4228
Robert Smith
Email: rsmith@auditsandinvestigations.com