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Pegasus - Acquisition


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Pegasus - Acquisition

  1. 1. Pegasus Case<br />Team 417: Monarch Group<br />
  2. 2.
  3. 3. Agenda<br />Introduction<br />Size-up and Strategic Fit<br />Value created by the acquisition<br />Main challenges<br />First 90 days<br />Then 100 days<br />Organization Structure<br />Risks <br />Strategy of new Pegasus<br />Conclusion<br />
  4. 4. The Situation<br /><ul><li>Pegasus: a strong provider of specialized call center services
  5. 5. Call-up: a rival in financial trouble
  6. 6. The opportunity: an opportunity to fully absorb a large competitor</li></li></ul><li>Introduction<br />Search and Screen (on-going)<br />Define strategic fit and financing intent<br />Evaluate and negotiate<br />Operateand capture value<br />Developintegrationplan<br />Integrate<br />DueDiligence<br />
  7. 7. Size up & Strategic Fit<br />Create Value<br />
  8. 8. How will Call-Up’s acquisition and absorption create value for Pegasus?<br />Evaluation and size-up competence<br />Highly successful & lean operations <br />Identification expertise <br />Opportunity driven culture<br />Integration knowledge & experience <br />Enhance market share as well as break into new markets <br />Achieve cost synergies (lower unit costs)<br />Addition of talent management & highly skilled employees<br />Elimination of a competitor<br />Attain additional infrastructure (call centres)<br />
  9. 9. Potential Challenges <br /><ul><li>Speed of integration
  10. 10. Culture change
  11. 11. Raise Call-Up’s operations to Pegasus’ standards
  12. 12. Immediate cost savings
  13. 13. Retain key call-up employees
  14. 14. Avoid loss of key customers</li></ul>Mike<br />Pat<br />
  15. 15. ACQUIRED<br />
  16. 16. First 90 Days prior to complete takeover<br />Executive Decisions<br />“Due Diligence”<br />Create shared sense of vision<br />Hire an outside Consultant and set up “Go Team”<br />Substantive Actions<br />Develop stakeholder communications:<br />Employee & Customers<br />Development of Strategic, Integration and Operational Plans<br />HR Decisions: Executive and Staff; Incentive packages for key employees<br />Main Enablers and Resistance Sources<br />Identification of human flywheels<br />Identification of sources of resistance<br />
  17. 17. First 100 Days after complete takeover<br />Operations<br />Focus on current customers<br />Rationalization of service lines and resources<br />Focus on key clients in Call-up<br />Finances<br />Lower Overhead cost<br />Decrease unprofitable accounts<br />Reduce accounts receivable policy at Call-Up<br />HR Changes<br />Increase bandwidth of supervisors of Call-Up<br />Homogenized compensation package<br />Loyalty transfers of key employees to Pegasus<br />Massey’s advisory role<br />Realignment of leadership<br />Address Regional VP concern<br />
  18. 18. Organizational structure<br />Advisor<br /> Lionel Massey<br /> Advisor<br />Paula Massey<br />President and CEO<br />Allan Small<br />Vice President<br />HR<br />Lloyd James<br />Vice President<br />Operations<br />Mary Pratt<br />Vice President Projects and Acquisitions<br />Michel Lemaire<br />Vice President<br />Sales and Marketing – Technology<br />Anwar Mahdi<br />Vice President Sales and Marketing – General<br />Sheila Hancock<br />Vice President IT<br />Charles Wong<br />Vice President Finance<br />James Salter<br />Call-Up Operations<br />Pegasus Operations<br />Regional Manager<br />Markham<br />Colin Bower<br />Regional Manager<br />Newmarket<br />(to be announced)<br />Regional Manager<br />Hamilton<br />Kent Jones<br />Regional Manager<br />Dartmouth<br />Ernie Gallo<br />Regional Manager<br />Halifax Centre<br />Joe Richards<br />Regional Manager<br />Moncton Centre<br />Corinne May<br />Regional Manager<br />Moncton North<br />(to be announced)<br />
  19. 19.
  20. 20. Strategy for the new Pegasus<br />“Our mission is to expand our customer base through continued excellent customer service and through a pricing strategy that maximizes our profit margins.”<br />
  21. 21. Questions?<br />
  22. 22. Forecast Financial impact<br />