Offering comprehensive support from clarifying the aims of and formulating a vision for group restructuring to executing on the project
Group Restructuring Policy Formulation and Implementation Support Service
Solution
Through the Group Restructuring Policy Formulation and Implementation Support Service, ABeam Consulting formulates clear aims for restructuring projects and creates and executes proposals for optimal corporate reorganizations, based on the target business’s position within its broader group and the group’s overall vision. We help bring greater clarity to the roles of subsidiaries following group restructurings and formulate policies for addressing resistant forces, while also promoting frictionless post-restructuring integration by helping to merge operations and systems.
Background
Companies need to maximally leverage synergies across all their businesses, strengthen competitiveness across the entire group, and realize sustainable value creation in order to deal with changes in the business environment
The market structures and business environments facing companies have grown more complex than ever before with the globalization of business, the maturing of markets and Japan’s aging population being compounded by uncertain international relations and instability in energy supplies, and exchange rate fluctuations in recent years. Dealing with these changes will take agile and flexible responses on the level of corporate groups as a whole, with this contributing to the maximization of corporate value. To that end, companies need to review the roles of each of their group companies, their decision-making processes and their allocations of resources with a view to company-wide optimization.
Challenges
Overall strategies for improving groupwide corporate value have not been formulated or considered. Companies need a strategic review that is agnostic regarding the form of any restructuring
Pitfalls
- Combining flexible responsiveness with the initial aims of a merger
Companies need to execute absorption-mergers in line with their strategic directions without losing sight of the initial aims of the merger, while also taking into account the situation of the target business and the opinions of stakeholders. It is also important to move forward on the basis of consistent policy, while retaining the flexibility to maximize the creation of synergies post-merger. - Achieving frictionless internal integration
Mergers often see conflict and other types of friction arise due to differences in corporate cultures and operational processes. This makes it essential to identify risk factors in advance and put in place appropriate measures to deal with them. In particular, companies need to implement effective communications strategies and management policies to lessen the psychological burden on employees and promote a greater sense of unity from the early stages. - Frictionless operational and system integration post-absorption mergers
Companies need to formulate and execute integration plans for operations and systems according to their order of priority, while properly involving stakeholders, so that they can frictionlessly continue carrying out their work post-absorption mergers. Particularly critical is integrating core systems and standardizing operations at an early stage, and responding to issues in ways that minimize disruption to operations. - Fully analyzing the purpose and feasibility of converting companies to subsidiaries
It is essential for companies to clarify their aims in converting companies to subsidiaries and to objectively verify the strategic purpose and the feasibility of the outcomes they expect to deliver. In particular, companies need to carefully analyze whether the benefits that come from converting a company to a subsidiary can be expressed sustainably from the points of view of creating synergies, streamlining management and distributing risk. Companies also need to evaluate feasibility in terms of organizational structure and the financial side of things from multiple angles and formulate the right segmentation strategy, based on trends in the business environment and on market trends.
Approach
Absorption Mergers
ABeam Consulting offers companies concrete approaches that they can take to smoothly facilitate the integration process. ABeam offers support every step of the way from ascertaining the current state of the business to evaluating capabilities, extracting the challenges involved in incorporating the new company, formulating integration plans and actually executing on integration. ABeam also carries out effective communications strategies aimed at properly explaining the process to employees and promoting consensus building, while minimizing conflicts.
De-Mergers and Converting Companies to Subsidiaries
ABeam Consulting helps clients clarify basic policies, consider the scope of targets for companies to convert to subsidiaries and formulate business and operational plans for new subsidiaries as part of the process of formulating subsidiary strategy. We also provide implementation support to clients to facilitate smooth post-conversion operations and help them effectively carry out each step in the process.
Key features
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Support From Strategy Consultants Who Understand Their Clients’ Business
Group restructuring takes a deep understanding of group strategy. Our consultants leverage their extensive experience to provide clients with end-to-end support from strategy formulation to execution, advancing projects in a way that is informed by a proper understanding of the client’s group strategy.
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Deep Understanding of the Practical Side Based on a Wealth of Experience in Carrying Out PMI, Operations and IT Projects
It is essential for companies to formulate sound restructuring plans if they are to smoothly execute integration projects without running into major pushback from people on the ground when group restructuring is executed. ABeam Consulting offers clients support from consultants with deep understandings of on-the-ground matters earned through a wealth of experience in PMI, operations and IT projects.
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Consultants With Knowledge Spanning a Wide Range of Domains
To carry out group restructuring quickly, companies need people who can handle matters across a broad range of domains including strategy, organizational and HR affairs, accounting, operations and systems. ABeam Consulting projects are led by consultants with experience in strategy formulation, building management controls and implementing systems.
