The 100-day plan has garnered a lot of attention ever since the 1990’s. The term refers to what happens in a company in the first 100 days after an acquisition. However, there are no clear rules for what this plan should address—it depends on whom you ask.
The lowest common denominator that most professionals would endorse, is that the plan should contain the most urgent value-adding measures, the ‘low-hanging fruit’, and an outline of the most important value drivers in the long run. This will ensure that improvements in these areas are prioritised.
Every 100-day plan is unique, but below are a few examples of recurring themes:
Creating clear guidelines and targets of what the company should have achieved at end of a set time frame. With clear guidelines and targets in place, a plan for how the company will reach the targets is drawn up. This is necessary to ensure that management and employees work together towards a common goal.
Establishment of an organisation that is capable of implementing the plan. Mainly through identifying key personnel within the organisation, but if there are gaps in competence, outside recruitment will be necessary.
Identification of a number of initiatives that can improve the company’s ability to generate cash flows. This will in turn facilitate the financing of investments which are necessary to meet the long-term goals.
Prioritisation and identification of opportunities for operational improvement. What are the value drivers that will create growth in the long run? It could be R&D, logistics, sales, marketing or investments.
Creating a clear action plan to ensure a successful implementation and to make sure that all initiatives are carried out. It is important that the plan is correct and that it is easy to follow up on regularly.
Most financial buyers use a 100-day plan, but many seek advice from external strategic and accounting consultants to help create parts of the plan.
A 100-day plan often manages to shed new light on a business while also enabling the company to ‘move up a gear’. The period after an acquisition is often an excellent time for implementing new initiatives, since the organisation may be more prepared for it than usual.
If you would like to find out more about what a 100-day plan could do for your company, or what a partner most likely would want to change or implement after an acquisition, do not hesitate to contact Valentum.