AI Global Excellence Awards 2016

Acquisition International - Global Excellence Awards 2016 29 Making Transitions Tangible Mercer is a global consulting leader in talent, health, retirement and investments supporting clients around the world. Following their Best Executive Compensation Advisor on M&A Transactions award win, we invited Principal, Amanda Flint to tell us more. ercer has a thorough and thoughtful approach to executive pay and M&A transactions. By careful analysis of current pay and benefits of executives pre-transaction. Mercer aims to give clients a clear picture of the cost and expectations of the management team. Amanda outlines the firm’s process and how it works to ensure that it offers clients the very best support throughout. “Here at Mercer we analyse the existing level of commitment to salaries, pensions, benefits and other types of fixed pay. We also review the level of incentive pay, the performance periods and the targets that need to be achieved to trigger pay out under the existing scheme(s). Not only does this indicate the cost of variable pay but also indicates the performance culture of the target organisation. Our international database allows us to benchmark remuneration so that the acquirer can understand how pay levels in the target compare to market rates. “As part of the transaction process we interview senior executives so that we can understand the corporate culture of the target and gain valuable insight into its corporate strategy. We ensure that executives understand that their views are valued by the acquirer and reassure target management if they have any concerns. We work with the acquirer and the management team to design and implement short and long term incentive schemes post acquisition. These plans incorporate the integration targets for the acquirer and performance measures to ensure that the business is successful post acquisition. Setting this dialogue up at an early stage helps build trust between management and the acquiring company and contributes to a successful integration post-signing. “The senior executive team in the target is often crucial to the success of an acquisition and our work does not stop at signing. Post deal we implement integration plans to ensure that the two organisations work together successfully. We are also frequently called upon to review the retention position for the management team – at the first stage, this involves calculating the value that the management team will realise as a result of the deal. Careful interrogation is needed to uncover bonuses payable by existing investors and to unravel the existing incentive plans which are often complex. We then work with the acquirer to put together a retention proposal for the management team – often combined with specific integration targets.” In 2017 Mercer anticipates that the volume of cross- border acquisitions will continue to increase, and as such their team will gain even greater experience and knowledge. The firm works with acquirers and management teams to cross cultural divides on international transactions, alongside working with the acquirer and the executives to explain the cultural differences in the way that people approach business around the world. This helps communication and to allay anxieties from both parties. Mercer’s multicultural approach and widespread employee base means that the firm has a rich seam of international resources to inform this process, and moving forward the increased workload will allow it to grow and build upon its current success, as Amanda concludes. “At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We are in the business of creating more secure and rewarding futures for our clients and their employees; whether we are designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. “Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s current and future needs through a lens of innovation, and our holistic view, specialised expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we make tomorrow, today.” Company: Mercer Name: Amanda Flint Email: amanda.flint@ mercer.com Address: Tower Place West, London EC3R 5BU Phone: +44 207 178 3276 Making Transitions Tangible M 1701A154 “At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We are in the business of creating more secure and rewarding futures for our clients and their employees.”