Deliverable 1- Kingston-Bryce Limited (KBL) Acquisition Project Plan

Esther Yama

Rasmussen College

Felicia Roquemore

April 16 ,2020

Project Description

This specific project entails the purchase of a competitor as an opportunity for our firm

(KBL) to expand its operations and increase it workforce. Besides, this venture will assist the

firm in achieving a competitive edge now and in the future. The aim of the project is to have

the competitor as part of KBL. Some of the challenges that may result from the acquisition

include loss of customers that were loyal to the brand and an increase cost for staff training to

orient the newly acquired workforce to KBL policies, culture and philosophy. However, a
plan will be in place to ensure a smooth transition of functions and assets. We intend to

finalize the acquisition in a period of 18 months and through an eight-step series of activities.

Problem Statement

Kingston Bryc Limited has been considering the need to expand its operation as well as

increasing its workforce to enhance productivity and profits. However, the perfect

opportunity for that has been elusive. This opportunity provides KBL the chance to attain

that.

Project Objectives and Expected Results

Main Objectives

 To ensure that each board member understands the need for the project and accepts it.

 To ensure that all stakeholders are in a position to contribute to the success of the

initiative.

 To ensure a smooth and effective transfer of assets, functions and workforce to KBL.

 To successfully acquire the competitor.

Expected Results

 Enhanced Competitive advantage

 Diversification of KBL operation and an expanded workforce.

Deliverables

Successful negotiations

Signing of Sale and Purchase Contract

Transfer of Assets and merging of operation

Assumptions

Target firm is willing to sale

Availability of funds.

Project Outline

1. Conduct a Due Diligence on the firm (Intended acquisition) as well as SWOT

Analysis.

2. Report to the Board on the findings of the background check.

3. Notify all KBL stakeholders of the intended purchase

4. Notify the Competitor of the intention to purchase.

5. Arrange for a Negotiation meeting

6. Signing of the Purchase and Sale Contract.

7. Transfer of funds.

8. Closure and integration of the acquisition process.

Key Stakeholders

Anyone whose actions can influence the success or a failure of a project should always

be viewed as key stakeholder. However, some groups have numerous numbers of

positions and individuals requiring only a few to be represented in a project

implementation process. Involvement of stakeholders is crucial for project success

(Kerzner, 2017). The following six stakeholders will be vital to the project:

KBL Board of Directors: The company’s board of directors is critical to this project

first since it the one that has identified the acquisition opportunity and the one that is

going to approve the project charter, timeline, Scope and Budget. Besides, it is the
same board that will approve changes concerning the above. Without the above

approvals not a single project milestone can be attained.

KBL employees: there is need to maintain and sustain the current morale and

productivity among the staff and to do that, we would want to understand if there is

anyway the intended acquisition can impact that. We can only to do that by bringing a

few employees on board to ensure the furnish us with the views of other employees.

Target firm Management: This project will pull through if only the firm to be

acquired agrees with our proposal. However, that will also depend on them providing ass

will all information concerning their finances that includes financial assets and liabilities,

investment portfolio, risk management strategies, consumer acquisition cost and their existing

corporate responsivity initiatives.

The seller will also need to send his representatives to the negotiating table for deal to pull

through.

Regulatory Agencies: Agencies that supervise such purchases must be involve to ensure they

are aware and their regulations are not being violated. KBL must be willing to furnish them

will all details concerning the purchase and stakeholder involvement strategies and feedback.

This also involves the courts where all lawsuits opposing the purchase must be allowed to

finish and courts give a go ahead.

Government: Taxes that government demands from such ventures must be paid for the

acquisition to be successful. Without that the government can interfere with process through

injunctions.

Project Manager: The project manager and team are responsible for the conceptualization of

the project, its implementation, monitoring and the successful handing over of the same to the

board or KBL. The project manager should possess all the leadership and project management

skills to ensure the success of the initiative. Besides, it is the project manager who prepares the

project scope, timeline, budget, contingency measures and assembles all resources for the
success of the same. Moreover, it is the project manager that reports to the board on the

progress of the project.

Customers: Customers are key since they are the ones that drive the sales of a firm. They will

be crucial in providing their views about the acquisition to maintain loyalty to the brand and to

provide more intel about the target

Task and Milestones

To ensure the successful implementation of the project the project manager will have a team

that comprises of KBL’ financial experts, negotiators, Lawyers marketers. Meaning that most

of the work will be done by the above individuals and report to the project manager

Conduct a Due Diligence on the firm (Intended acquisition) as well as SWOT Analysis:

This will be the first task that the project manager together with her team will undertake. It

will entail the thorough and extensive analysis of the financial records of the competitor. This

will be financial statements for instance balance sheets, Cashflow statement and Income

statements. Besides, the team will evaluate the competitor’s investment portfolios and

available workforce potential. Crucial milestones here will the completion of financial

scrutiny and the listing of potential financial burden that acquisition might bring to KBL.

Second, it will involve a SWOT analysis of the firm to identify some of the strengthen that

will be beneficial to KBL, identification of weaknesses that KBL would not to strengthen,

opportunities it might bring that can be explored to enhance KBL’s bottom-lines and Threats

it might bring to our businesses. Key milestones concerning the SWOT Analysis will the

creation of a complete list of the above to be presented to the board.

Report to the Board on the findings of the background check: This task or activity will

involve presentation of a report to the board on the financial position of the entity we intend

to acquire as well the SWOT Analysis Report. Key milestones here will be to ensure the

board has understood the contents of the reports, has made a decision on whether to go ahead
with the acquisition and receiving the approval to go ahead with project which is the main

milestone here.

Notify all KBL stakeholders of the intended purchase: Others stakeholders include

shareholders, staff, customers and even the general public. This task will involve

communicating to all these stakeholders about the acquisition. Key milestones development

of the correct message by the communication department and disseminating the information

to all the stakeholders as well gathering feedback on their reaction.

Notify the Competitor of the intention to purchase: This task with entail a collaboration

between the finance, communication and legal department in drafting a proposal that will sent

to the competitor to notify them of our intention to purchase the firm. Key milestones here

are a purchase proposal, ensuring the competitor has received the proposal and receiving a

confirmation about the competitor attending the negotiation meeting.

Arrange for a Negotiation meeting: This activity will involve setting the meeting venue

and ensuring those involved are aware, selecting good negotiators for KBL and the actual

negotiations. It will also involve presentation of the purchase contract and sale contracts, with

both sides having the chance to recommend changes or improvements. Key milestones here are

having all representatives available at the meeting, successful negotiations, price agreement,

drafting the final purchase and sale contracts and an acceptance of the same both parties.

Signing of the Purchase and Sale Contract: Both parties will sign the final contract that

pertains to their engagement. Key milestones here will KBL representative going back with

the duly signed contract of purchase

Availing and Transferring funds: It will the prerogative of the board of directors, the CEO

and the Finance department to determine how the purchase will be executed regarding

financing. If it’s a line of credit or venture capital the above would have to establish that. An Asset or
 Share purchase would be the viable approaches. Key milestones here will be the confirmation that

finances are available for the execution of the purchase, confirmation by the target firm that

funds have been received.

Closure and integration of the acquisition process: This will be the last stage of the

acquisition process where the deal closes, and the management teams from both

organizations work together to achieve a successful merger. Key milestones here will

be the successful transfer of assets in an asset purchase or the issuance of a share

certificate in a share purchase, absorption of the target company workforce into KBL

roster and the merging of operations and functions.

Timeline for the Acquisition

Month Activity/Task Milestone Start Date End Date

Two Months Conduct a Due  completion of April (2020) May (2020)
Diligence on the firm financial
(Intended scrutiny and
acquisition) as well report
 as SWOT Analysis:  Completion of
Cost benefit
analysis and
report
 Complete report
SWOT Analysis
 Completion of
this task

Two Months Report to the Board  Board has June (2020) July (2020)
on the findings of the understood the
background check: content of the
background
check reports
 Approval to go
ahead with the
project
 Completion of
this task

Two months Notify all KBL Development of the August (2020) Sept (2020)
stakeholders of the correct messaging
intended purchase: Disseminate information
to Key stakeholders
Gather Feedback and
prepare reports.
Completion of this activity
Two months Notify the Confirmation of the Oct (2020) Nov (2020)
Competitor of the intention to sell
intention to purchase Prepare Purchas proposal.
Confirmation of receipt of
the proposal
Confirmation of the
intention to engage.
Closure.
Arrange for a Presence of all Dec (2020) Feb (2021)
representatives.
Negotiation meeting Successful negotiations
Three Months
Price Agreement
Final purchase and sale
contracts
Acceptance from both
parties
Closure
Two Months Signing of the Both parties leave with March (2021) April (2021)
duly signed contracts
Purchase and Sale Closure

Contract:

Two Months Availing and Financing strategy May (2021) June (2021
Transferring funds Determination of type of
purchase
Confirmation of funds
Transfer of funds and
confirmation by target
company.
Three months Closure and Transfer of Assets July (2021) Sept (2021)
integration of the Absorption of target
acquisition process: workforce
Merger of operations and
functions