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Merger integration of US tech targets with EU companies

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This presentation is about successful integration of US Technology companies into EU companies

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Merger integration of US tech targets with EU companies

  1. 1. Remarks on merger integration of US targets with EU software companies Dr. Karl Popp http://www.mergerduediligence.com
  2. 2. Agenda Agenda – Avoid the culture clash – Typical issues and risks integrating small US tech targets – Success factors according to study – PMI Approach for small targets – My personal success factors in US acquisitions
  3. 3. Avoid the culture clash: Raise culture awareness and walk on the middle ground Topic US quotes German quotes People „i like inspiring and emotional leaders“ „leaders have to be good managers“ Products „Let us start with a minimal viable product“ „Before we start let us define the full blown product“ Processes „we will make it work“ „it will not work before the processes are defined“ Business focus „Marketing and Sales is key“ „Product development is key“ These quotes are meant to emphasize certain aspects, not to insult anybody
  4. 4. Typical issues, risks integrating small US Software targets • For the acquirer – Complexity even of small targets leads to high efforts for integration • Target – Can be overwhelmed by workload, compliance and reporting requirements, size and org of acquirer – Attrition
  5. 5. Success factors for German companies acquiring US targets A study* of 48 mergers shows: • Cultural affinity did not increase the success rate • Major barriers for success were: – The people driving the merger – Their experience – Degree of complexity of the merger *Kröger, Success and Success Factors uf US-German mergers, 2005
  6. 6. PMI Approach for small tech targets • Goals – Ship products ASAP, scale revenue – Align and integrate development and operations with acquirer ASAP • Topics worth mentioning – Globalization and localization of target solutions to EU might be a high effort activity – Mind the export restrictions to and from Europe and data protection laws in Europe – Mind the success factors
  7. 7. My success factors in acquiring US targets • Choose integration managers who – Speak english fluently – Have empathy for U.S. people and diverse culture – Are very good project managers and problem solvers – Have experience in post merger integration • Minimize attrition • Fast and full integration IF acquirer understands and can implement the business model of the target (administration, sales, development)
  8. 8. More information here: http://www.mergerduediligence.com

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