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100 Day Plan

Definition - What does 100 Day Plan mean?

The 100 Day Plan is a map of transition during the post-sale days of a company. They are the critical days within which integration takes place during the acquisition process.

Divestopedia explains 100 Day Plan

A 100 Day Plan post closing will greatly benefit strategic and private equity buyers alike. The plan, which is developed by the integration team together with the development team, covers integration issues that are presented during the due diligence phase. The issues that are covered include accounting issues where, for example, the acquirer may perform both GAAP (generally accepted accounting principles) and IFRS (International Financial Reporting Standards) quarterly reporting functions while the acquired company only performs GAAP reporting. The acquirer should implement policies that will reconcile and balance the merged entities' reporting functions.

Another issue addressed during the first 100 days is the retention and integration of human resources. While it is key to realize cost savings in human resources, it is critical for the acquirer to identify key talent and retain those employees to support the integration. Finally, information technology must also be reviewed and addressed to identify which systems should be integrated to enhance productivity.

If the business continues the normal functions with customers and vendors without interruption during the 100 day post-sale period, then this is an indicator of the acquisition's success at seamless integration. The creation and follow-through of the 100 Day Plan provides a road map that will lead to the achievement of expected synergies as well as increased growth for shareholders.

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Resources

  • Equicapita: Equicapita
    Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada.
  • Evolution Capital: Evolution Capital
    Leaders in growing small business.