How CFO's Can Turn Stakeholders Into Allies - By Maureen O'Connell

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The CFO's Role in Merger and Acquisitions

• Maureen O Connell
• Executive VP, CFO and CAO
• Scholastic Corporation
• Sept 29th, 2014
• Note The views expressed here are my own.

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CFOs MA Deals

• MA deals are most often made to scale up, expand
  into new geographic markets or product lines, add
  new capabilities or integrate the supply chain.
  Regardless of the reason, when your business is
  considering an MA, there are 3 essential roles -
  which I like to call playing SIR - that you,
  being the CFO, must play to lead it to success.

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 1) Strategize

• Ensuring that the deal is financially sound falls
  into your purview automatically.
• In addition, you are also expected to offer
  insights into qualitative aspects like shaping
  the renewed vision for the future and identifying
  potential problems.
• Since you are the trusted truth-teller of
  stakeholders, you will have to give voice to this
  vision to garner their support and also explain
  yourself if objectives are not achieved as
  planned.

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 2) Integrate

• Consolidating two entities could reduce costs,
  increase sales, boost profitability, pool in
  talent and offer a range of other benefits.
• To kick-start the momentum in a timely manner,
  you would play a key role in creating a sound
  integration plan after the merger and identifying
  the people who can execute it.
• This role will last all through the first year,
  when the integration effort is most significant,
  in charting out the roadmap for the future.

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 3) Redesign

• Merging the finance teams effectively is the
  least of your worries.
• You must define objectives and create performance
  metrics that more than justify the deals
  purchase price.
• You must redesign the compensation and incentive
  programs.
• You must organize training programs to help new
  employees identify the key value drivers within
  their control and how to attain performance goals.

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To Conclude

• Your bittersweet role of truth-teller would also
  mean that you would have to explain to
  stakeholders if objectives aren't achieved. In
  such a scenario, make your communication timely
  and clear explain the reasons behind the failure
  and reassure them with specifics of the
  corrective steps being taken.

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Maureen O'Connell

• Maureen OConnell is the current Executive
  VP,CFO and CAO of Scholastic Corporation. When
  not working, Maureen loves running, Skiing, Scuba
  Diving or Travelling.