News & Research: Client Successes

Case Study: Post-Merger Integration of Nuclear Generation Functions

ScottMadden assisted two nuclear generation operating organizations with a successful, seamless merger.

• The transaction involved the merger of two large vertically-integrated electric utilities
• Although it was a merger of equals, the nuclear generation organizational structure of one company was clearly defined as the future template/standard
• Strong performance management culture of larger nuclear organization set the tone for the merged entity; aggressive synergy targets were established
• A corporate shared services organization was also being established as part of the merger integration
• The corporate-level merger integration team was supported by another consulting firm

• Developed a high-level "phased" work plan to guide nuclear generation integration activities
• Supported all facets of integration team activities, including development of synergy-related analytical templates, project management methodologies, and ongoing "coaching" of functional team members
• Established an open and collaborative communication link with corporate-level consulting team
• Ensured the content and approach of the nuclear analyses and documentation were consistent with corporate requirements.  These were typically formalized for each phase after the nuclear team had completed their work
• Integrated planning and budgeting processes and facilitated development of joint business plans and budgets that incorporated all identified synergies
• Conducted Day-One readiness assessments to ensure integration plans for each functional area were complete and that service level agreements were in place for required shared services support

• Disciplined methodology employed and proactive nature of nuclear generation organization meant that nuclear integration plans were completed ahead of schedule
• Transition management infrastructure was minimized during the process and quickly acquiesced to the post-merger line management structure
• Ownership of merger integration plans and synergy targets was passed seamlessly from transition teams to the line
• Combined nuclear generation fleet was fully integrated, and operating performance remained high throughout the merger integration effort
• Synergies identified are being fully realized