DCA 75% of M&As fail or add no value. Here are 10 steps that make them work.


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75% of M&As fail or add no value. This discussion guide is based on extensive research and looks at the hurdles, how to avoid them and a check list to assure a successful approach.

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DCA 75% of M&As fail or add no value. Here are 10 steps that make them work.

  1. 1. 75% Of Mergers &Acquisitions Are Failures How To Avoid   Dean Crutchfield Associates
  2. 2. What’s the point?The Problem of M&AsMost M&As fail, by 50%, 65%, 73.374%…..Lack of long term integration management (losesmomentum)Post deal communication not handled wellSoft issues neglected: culture, problems of retaining keypersonnel and cross state M&As clashes as a result of payconditions, pensions, etc.“People forget that after the heady aspirations of Friday’s deal team there’s work to be done come Monday morning.” Dean Crutchfield Associates
  3. 3. Purpose of Discussion GuideSuccessful M&AsStimulate your thinking about the issuesDemonstrate how brand based transformation can drive topline growth & internalintegrationExplore possibilitiesto ensure M&AsuccessIllustrate how thestrengths of DCAhelps you Dean Crutchfield Associates
  4. 4. There Are No ‘Mergers’ Of EqualsThe obvious truthManagement’s in a hurryto growComplete integration isnecessary to:Cut costsCombine back office systemsRelease synergiesMerge sales forcesBlend product lines, etc.  Culture & Practice Will Dominate! Dean Crutchfield Associates
  5. 5. “Merging and acquiringcompanies destroys shareholdervalue. It is as simple as that.” Mark Sirower, Former Chairman, Goldman Sachs Dean Crutchfield Associates
  6. 6. Two determinates of value creation1. How tight the ship is runTypically the successful‘acquirer’ are those witha history of cost controland productivity, i.e., the‘acquirers’ culture will bethe more successful indirecting and getting themost out of the deal. Dean Crutchfield Associates
  7. 7. Two determinates of value creation2. The closeness of relationshipsIn M&A, soft is hard and thecloseness of relationships withcustomers, suppliers, partnersis crucial. The business that has thedeepest rules and the challenge tois to embed the benefits of theirknowledge/approach.*Brand architecture plays a huge role here. Is it logos, labelsand layers or worlds shared by employees and customers? Dean Crutchfield Associates
  8. 8. Reasons for FailureInternalTough keeping business performingwhilst managing the acquisitionNot addressing victor & vanquishedattitudesLoss of momentumLeadership struggles (diverting/devisive)Inability of managers to lead the people through the transition Dean Crutchfield Associates
  9. 9. Reasons for FailureInternalDo as I say, not as I do - lack of role modelsInternal opposition to new ways of workingResistance to new structureNot engaging the workforce, fear of job lossesNot addressing conflict and culture issues Dean Crutchfield Associates
  10. 10. Reasons for FailureExternalMarket share does not growConfused brand identityPublicised promise is difficultto match on the insideRegulators (can) both hinder and help processExisting customers/suppliers no longer remain loyalShareholders doubt acquisition strategy Dean Crutchfield Associates
  11. 11. Reasons for FailureExternalHow do you manage the absorption of the acquiredbrand(s) with its own values - operationally andculturally into one ‘family’?….or not?And if so, how should you manage it?How do you absorb the acquired business/brand intoyour house style?And if so, how should you manage it?Do you permit the business to keep its name undera new holding company ‘group’ concept?Do you manage the M&A as a transitional process,with an initial focus on product marketing and brandrationalization?Do you communicate other dimensions to the added value of the dealbeyond simply increasing size, scope and resources? Dean Crutchfield Associates
  12. 12. A Profitable Capital Management ProgramExternalBe clear about the future and create a sense of direction (and brand it)Do not be afraid to state that you do not have all the answersManage external and internal communication togetherHave a communication (and integration) plan in place before signing thedeal, which includes:Audiences (including unions and work councils)Key messagesTimetableActivities and materialsApprovals processResponsibilities Dean Crutchfield Associates
  13. 13. A Profitable Capital Management ProgramInternalDo not over reassure internal audiences by saying there will not besignificant changesEnsure regular and frequent communication using both face to facemethods (for effectiveness) and digital methods (for timeliness)Focus on survivors not on leaversDo not pretend it’s business as usualExplain the business rational for the transaction (and repeat)Do not approach integration as a phase, but as an on-going process Dean Crutchfield Associates
  14. 14. A Profitable Capital Management ProgramConcentrate focus on taking the initial stepsPlanningAnnouncements and pre completionEarly post completionIntegrationTransformation Dean Crutchfield Associates
  15. 15. Transformationdoes not occur simply through somebody in a suit standingup announcing it. There must be a vision. Moreover, it hasto amount to more than a few well chosen words. Dean Crutchfield Associates
  16. 16. Check ListA Profitable Capital Management ProgramContact program between managementKey messages - internal and externalExternal consultants - who, why and whatInterim communication brandingIntegration toolsIntegration of communication termsIdentify new vision, mission and culturePlan identity and communication strategyReporting news - internally and externallyCommunication needs for transformationProcess for feedback Dean Crutchfield Associates
  17. 17. Dean Crutchfield Catalyzing top line growth for clients is what we thrive on: how to put your best case and winning face forward, sharpen the product offering and encourage your people to move the needle north. By deploying real world strategies and hands-on collaboration to inspire teams we create content backed by actions that will assure you of seizing every good opportunity, selling more services and winning new business. For 20 years Dean Crutchfield has advised the worlds most iconic brands, built businesses, created new companies, opened international offices and spoken about the role of brands at Duke, Kellogg, Wharton and the Google Speaker Series. He has made appearances on all major TV news networks, commentary in the global press, editorials in major business publications and is a Contributor to Forbes. With a proven ability to inspire and push the boundaries beyond the notion of what was thought possible, DCA excel with clients who are looking to run fast, led by CEOs, CMOs, entrepreneurs and executive teams eager to capture dominant levelsDean Crutchfield Associates of success. Let’s grow.
  18. 18. Our Mission Achieving growth For ambitious leaders who are driven to grow fast Creating new business Orchestrating and activating accelerated outreach programs Building efficiencies Rapidly sourcing the best talent for the business   Improving margins Rallying teams behind the brand and go-to-market strategy Boosting win rates Delivering your best case and winning face forward    Dean Crutchfield Associates
  19. 19. In the pursuit of opportunity without regard to resources held, Dean Crutchfield has targeted and won millions in new fees for the world’s leading image makers and innovation consultancies. Accomplished by convincing senior executives at Fortune 500 companies on go-to- market brand building strategies, innovating new products and businesses, building key client relationships and generating new business opportunities.Dean Crutchfield Associates
  20. 20. Armed With A 2x2 Growth Matrix& A White Board DCA RapidlyCreate Precise Multi-channel Outreach Programs That Generate Immediate Impact Dean Crutchfield Associates
  21. 21. Create Growth Brand Strategy Ambition Planning Pitch Forum Grow Teams Selling Presentation Skills Team Building Personal Branding Sharpen Offers Brand Building Business Activation Win Business New Business 101 Pitch Boot Camp Growing Clients Pitch DoctoringDean Crutchfield Associates
  22. 22. Working with DCA DCA (Dean Crutchfield Associates) achieve growth for clients by tailoring brand-led techniques that are uniquely participant centered. We guarantee results. Whether it’s a better pitch, winning new mandates, a better team or more fees, you will find our fee in your business within weeks. DCA programs have been thoroughly tested and proven with start-ups and Fortune 100 brands, uniquely adding immediate value. When you hire DCA, you get results. If you have the right people attend the sessions and complete all of your committed decisions and pilot initiatives and are still not satisfied or seeing results by the agreed time frame, we will coach and advise youDean Crutchfield Associates free until you do!
  23. 23. Global Client Experience Aviva* McKinsey BP Metsä Serla* BT* SKY* Nomura* BSkyB* PepsiCo Camper & Nicholson PG&E Carter’s Pitney Bowes Cellcom* RBS* CITI Scanfinest* College Board Shell“Dean always cuts to the core of what needs Comcast Smirnoffto be done and said. He helps bring clarity and Staplesprovides value by being an outsider with no General Electricagenda, so he can help you stand back and see Kraft Sunglass Hutthings from different perspectives. Fila TargetDean helped us think through solutions and Frito-Lay Tower of London*then form the best way to present those Littlewood’s* Warburg Pincussolutions in a persuasive and compelling way.” McDonald’s WGM*References upon request M50 * Overseas Project Dean Crutchfield Associates  
  24. 24. Contact: Dean@deancrutchfield.com +1 917 239 3303333 East 34th Street, Suite 15A/B, New York, NY 10016 www.deancrutchfield.com