managing multiple mergers at a time - ingredients for success
DESCRIPTION
while acquisitions are complex and challenging, acquiring multiple companies at a time is even more challenging. this presentation gives advice from the viewpoint of a serial acquirer.TRANSCRIPT
MANAGING MULTIPLEMERGERS AT A TIME -INGREDIENTS FOR SUCCESSDR. KARL POPP
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M&A leads are
• PROFESSIONAL,• RELAXED,• SUCCESSFUL.
Doesn´t resonate with you?Let´s see what we can do about it…
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Rule 1: Look in the mirror – not therear view mirror
• What?– Analyze and adapt your capability maturity to
integrate successfully• Why?
– Buyer company and manager abilities tointegrate are mission critical
• How do we manage it?– Select integration managers carefully– Secure enough capacity for integration work
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Capability maturity problems
M&Aexperience
DedicatedM&A
resources
Peoplein corporate functionsto care for acquisition
integration
M&A experience gap}
Resourcegaps
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Rule 2: Shake and bake approach foracquisitions
• What?– Structure and tailor the integration approach in
due diligence• Why?
– It is hard to drive a car while you are building it• How do we manage it?
– Make use of predefined work catalogues,integration and management approaches, buttailor them to the specific case
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Rule 3: Minimize process risk
• What?– A structured due diligence and integration
process is mission critical• Why?
– You don´t have time to discuss processduring integration
• How do we manage it?– Define processes based on work catalogues
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Rule 4: Let others go through hell foryou
• What?– WYSIATI what you see is all there is– you don´t foresee what you don´t know
• Why?– Avoid disaster
• How do we manage it?– Read the book
„Deals from hell“by Robert F. Bruner
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Rule 5: Appreciate the work. Don´tunderestimate it.
• What?– Complexity and effort of merger integrations
are often ignored or guessed to be too low• Why?
– Complexity models are not used• How do we manage it?
– Leverage complexity models, see next slide
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3
4
5
67
8
9
10
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Revenue Buyer
Revenue Target
BuyerEmployees
TargetEmployees
Operatingcountries
LocationsCompanies
Value ChainCoverage
Profitincrease
Workforcereduction
Reduc-tion
of sites
Culturalchanges
Source: Prof. Lucks, Siemens
Complexity and Effort of integrations
Structuralcomplexity
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Rule 6: Fail early in due diligence
• What?– There is nothing worse than a bad deal.
• Why?– Dramatic cost of fixing things late in the process– Failure is no fun
• How do we manage it?– Let failure in due diligence be a viable
option– Drive for failure in DD, then for success
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Rule 7: Maximize the likelihood forsuccess
• What?– Define and plan for success
• Why?– Reasons and prerequisites as well as the way to
success is mission critical• How do we manage it?
– Name and monitor success factors– Let everybody know the way to success
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Rule 8: Make your day. Blueprint!
• What?– On day one you need to execute the
integration plan.• Why?
– Flawless execution is key.• How do we manage it?
– Define a detailed integration plan, togetherwith the target. Before closing!
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Results: Ingredients for success
• Analyze and adapt your capability maturity tointegrate successfully
• Structure and tailor integration approach andM&A process
• Avoid deals from hell• Manage complexity and effort• Drive for failure, then for
success in due diligence• Blueprint
http://www.mergerduediligence.com
Please find more information here:http://www.mergerduediligence.com
http://www.drkarlpopp.com