(79c) An Overview of the CCPS Guideline on Process Safety Consideration during the Merger and Acquisition Process
AIChE Spring Meeting and Global Congress on Process Safety
2009
2009 Spring Meeting & 5th Global Congress on Process Safety
Center for Chemical Process Safety (CCPS) 24th International Conference
Managing Organizational Change
Wednesday, April 29, 2009 - 8:50am to 9:15am
The Center for Chemical Process Safety (CCPS) will publish a new book entitled ?Guidelines for Acquisition Evaluation and Post Merger Integration?, with a strong focus on risks associated with process safety and its management. This publication is very timely since there is a plethora of mergers and acquisitions underway as chemical companies seek M&A as one avenue of growth and strategic consolidation in a highly mature industry.
It is very important to note that CCPS has chosen to not only address the pre-merger process safety due diligence but also the salient and far more important issues of post merger management of safety risk related issues that are often overlooked to the detriment of the acquiring company. A typical due diligence process may not correctly identify process safety gaps which can lead to increased integration cost and risk for the acquiring company.
Among other things, this book will contain detailed check lists identifying the "must do" items on a pre-merger basis and a "must do and how to manage" check list and directions on a post merger, smooth and seamless integration basis. In any organization the responsibility, authority and accountability (RAA) chain is clearly delineated but the specific responsibility for process safety management issues may vary between the acquiring corporation and the acquired entity. During post merger integration it is vital that a unified RAA chain be articulated and be clearly understood and be operational on day one after the merger. We know from real life experience that post merger process safety hiccups tend to occur with greater frequency in the acquired entity rather than the acquiring entity. This book's content is cognizant of the salient issues inherent in mergers and acquisitions and clearly lays forth the path to smooth integration in the aftermath of a pre merger due diligence audit for process safety.
We believe that this CCPS guideline will be a standard for future mergers and acquisitions and form the basis for best practice in the industry.
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