An M&A deal does not begin with the signing—nor does it end with it. Often, the real work begins after closing: there is often a gap between the assumptions of the transaction and the operational reality. What looks convincing in the model can quickly stall in everyday life: systems don't fit together, planned synergies fail to materialize, and forecasts lose their significance as soon as implementation begins.
This is precisely where Extended Planning & Analysis (xP&A) provides a decisive lever.
In this article, we show how xP&A supports M&A processes from due diligence to post-merger integration —and how this can significantly reduce unpleasant surprises after the deal.
What is behind Extended Planning & Analysis (xP&A)?
xP&A goes beyond traditional financial planning: it combines operational sub-plans and financial planning in a common, consistent model – for example, from finance, sales, operations, or HR. Instead of sending files between departments and reconciling them manually, all teams work on a uniform database and can track changes in (near) real time.
The result: fewer data silos, less friction, and a better basis for decision-making because strategic goals remain clearly aligned across departments.
How does this added value manifest itself in concrete terms in the context of M&A? A look at the pre-deal phase makes it tangible.
Pre-Deal: Faster, more reliable valuations – with significantly less friction
Due diligence involves testing hypotheses, calculating scenarios, and quantifying risks. Those who rely exclusively on spreadsheets or separate tools will quickly reach their limits—especially when market conditions change at short notice or key KPIs need to be reevaluated.
With xP&A, scenarios can be modeled much more quickly and in a more structured manner because current data, forecasts, and synergy assumptions converge in a consistent model. This allows CFOs, for example, to quickly assess
- how a customer churn rate of 10% affects EBIT and liquidity,
- which earnout logic creates the best balance between risk and liquidity,
- or which synergies are realistic—and which only work "on paper."
Companies that regularly acquire other businesses and view M&A as a recurring process benefit particularly strongly: if standardized models and synergy libraries from previous deals are available, valuations become more consistent, faster, and more comparable. In practice, it has been shown that from the second deal onwards, standardized model logic can significantly reduce the duration of due diligence—while at the same time improving the quality of the basis for decision-making.
Post-merger integration: xP&A as a control and early warning system
After closing, the focus shifts to implementation, integration, and achieving synergy goals. This is precisely where xP&A plays to its second strength: continuous monitoring and controllable implementation instead of purely reporting in the rearview mirror.
For example, if the planned cross-selling ratio falls below a defined threshold, an xP&A setup can highlight the deviation at an early stage, assess the impact on earnings and cash flow, and derive options for action. This creates an early warning system that helps CFOs take timely countermeasures—before deviations turn into real losses in value.
In addition, target group-specific scenarios can be provided based on the same data model:
- Management works with deal-relevant base case figures,
- Controlling and Customer Success receive more conservative targets including buffers,
- All teams nevertheless remain on a common, consistent data logic.
Three key advantages of xP&A for M&A transactions
The common denominator of successful M&A projects is a consistent database —for planning, valuation, and integration. That's exactly what xP&A delivers: it combines financial, sales, and personnel planning in a consistent model and enables fact-based decisions throughout the entire transaction process.
This results in three specific advantages for CFOs:
- Higher quality in pre-deal valuation
Scenarios, sensitivities, and assumptions can be tested in a structured manner—risks become visible and verifiable at an earlier stage. - Greater control after closing
Synergy targets, cash flow effects, and integration progress become measurable and can be actively managed on an ongoing basis—rather than just explained after the fact. - Scalable learning curve across multiple deals
Each transaction feeds insights back into the model. This creates a reusable framework that makes future deals faster, more consistent, and more predictable.
The bottom line is that M&A becomes less of a "one-off project" and more of a structured, data-driven process with a clear view of value, risks, and potential.
xP&A in practice: Experience the approach live
If you want to delve deeper and find out how xP&A is implemented in practice, Lucanet offers a concrete application framework: The xP&A solution combines financial and operational planning on a single platform, supporting consistent data, precise scenarios, and faster decisions throughout the entire M&A process—from valuation to integration.
This is a guest post by Carsten Gerger, VP Finance at Lucanet.
