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  • 1. 1
    M&A: A View from the other side
    SIGNAL
    20 September, 2011
  • 2. topics
    IDebunking Some Myths
    IIObservations:
    Strategic vs. Financial
    Services vs. Software/Product
    IIIHow We Think About Acquisitions
    IVA Word From our Sponsor
    2
  • 3. First, Let’s DeBunk a Few Myths
    MYTH: There are plenty of “Strategic” deals which disregard financials
    REALITY: There is no such thing as a “Strategic” deal
    MYTH: Deals tend to be cookie-cutter
    REALITY: In fact, Holding Companies are getting more and more creative
    MYTH: Agencies and Holding Companies move slowly
    REALITY: true enough, but today, they are working much more quickly, putting IOI/LOIs on the table quickly to lock out others
    MYTH: Agencies and Holding Companies won’t pay software multiples
    REALITY: True enough, as a general rule. BUT – if we want an asset badly enough, the pricing can get very aggressive
  • 4. Strategic vs. Financial Acquisition – My Observations
    Remember the 80/20 Rule - 80% non-financial metrics:
    Culture
    Leadership
    Approach to Human Capital
    Innovation
    Strategic Accretion is tantamount to a deal getting done
    Additive Services: drive geometric growth not possible stand-alone
    New Processes, IT, Talent, Capabilities, etc
    There is no Tomorrow
    There is no portfolio mentality – every deal must stand on its own merits
    Agencies are not financial investors looking for exits
    So, done is done
  • 5. Straight from the front
    “Our crew only works with the coolest clients. We pick and choose. Nike, Apple, Adidas…”
    “We have to maintain our brand. It’s the most important thing to us.”
    “Once we do the deal, we’d really prefer to be left alone.”
  • 6. Services-based business: what we buy
    We Buy People
    We Buy Cash Flow (which includes Clients)
    We Buy Geography
    We Buy Capabilities
    We Buy Magic
    And Where Possible…We Buy Scale
  • 7. Questions we ask ourselves about targets
    1. 1. How does this satisfy Growthobjectives?
    2. What immediate Clientneeds does this satisfy?
    3. Is the business:
    In growth mode?
    In high demand?
    Difficult to replace?
    4 . What’s the Competitive Differentiation?
    5. What is the Integration/go-to-market model?
  • 8. And Now…A Few Words From Our Sponsor
    8
  • 9. Our goal, our ambition
    Our Goal:
    Drive explosive growth by ensuring that we transform brands and businesses with world-class capabilities in the most relevant domains of marketing services
    Our Ambition:
    To be the best acquirer in the marketing services industry
    To ensure differentiated growth for MWG, leveraging our assets in the most compelling way possible by aligning all resource allocation decisions, globally, against opportunities of greatest value
    9
  • 10. True Innovation
    • New to the world, lucrative, client-compelling services; moving up the value chain
    Defining our priorities
    Growth at Scale
    • Client needs for services, new geographies. Provides revenue/margin growth
    Necessary Defense
    • Example: Extending footprint outside of BRIC markets, low cost production hubs
    Smart Tactical Deals
    • Low risk/quick payback
    • 11. Example: Books of business
    10
  • 12. A few key principles
    Every Target Has An Operating Home
    All transactions will be sponsored by an operating unit
    Regardless of where a deal sits, it will be available to all WG operating companies
    Deals Do Not Replace Strategy. They Accelerate It.
    All transactions will start with a specific strategic rationale:
    Relevant to WG
    • Relevant to clients
    • 13. Domains of differentiation and growth
    11
  • 14. Reaching me
    Marc.Landsberg@mrmworldwide.com
    @marclandsberg
    Marclandsberg@gmail.com
  • 15. Thank you
    13