February 14, 2008 NASSCOM  Peter Altabef  President and CEO Perot Systems  Mergers and Acquisitions
Mergers and Acquisitions History/Credentials <ul><li>Integrating Operations and People </li></ul><ul><ul><li>Majority of P...
Highly Domain Focused Global Acquisitions <ul><li>Identify your domain strategy </li></ul><ul><ul><li>Our strategy is to p...
Three Cautionary Tales <ul><li>Straying too far from core business </li></ul><ul><ul><li>Market research example </li></ul...
Three Success Stories <ul><li>Where is the puck going? </li></ul><ul><ul><li>Consolidating Healthcare Payer market </li></...
Three Keys to Success <ul><li>Be strategic.  Don’t just look for financial fit:  </li></ul><ul><ul><li>Accretive to core c...
Acquisition Strategy / Reasons to Acquire <ul><li>Scale operations </li></ul><ul><li>Extend into new industries, markets, ...
History / Logic of Acquisition at Perot Systems <ul><li>Infrastructure : has been the bedrock of Perot System’s Service Of...
Proprietary and confidential. © 2007 Perot Systems Corporation. All rights reserved. All trademarks are the property of th...
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Conversations with Corporate Chieftains – Making Acquisitions Work, Sharing Experiences, Peter Altabef, President and Chief Executive Officer, Perot Systems Corporation

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Conversations with Corporate Chieftains – Making Acquisitions Work, Sharing Experiences, Peter Altabef, President and Chief Executive Officer, Perot Systems Corporation

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  • Conversations with Corporate Chieftains – Making Acquisitions Work, Sharing Experiences, Peter Altabef, President and Chief Executive Officer, Perot Systems Corporation

    1. 1. February 14, 2008 NASSCOM Peter Altabef President and CEO Perot Systems Mergers and Acquisitions
    2. 2. Mergers and Acquisitions History/Credentials <ul><li>Integrating Operations and People </li></ul><ul><ul><li>Majority of Perot Systems associates transitioned from M&A and account acquisitions </li></ul></ul><ul><li>Mergers & Acquisitions experience </li></ul><ul><ul><li>Hundreds of prospects investigated </li></ul></ul><ul><ul><li>14 completed acquisitions </li></ul></ul><ul><ul><li>Acquisitions account for over $1 billion of annual revenue </li></ul></ul><ul><li>14% CAGR (Compound Annual Growth Rate) over 5-years </li></ul><ul><li>$2.6 Billion of revenues (2007) </li></ul><ul><li>$7.4 Billion total backlog of future contracted business </li></ul>
    3. 3. Highly Domain Focused Global Acquisitions <ul><li>Identify your domain strategy </li></ul><ul><ul><li>Our strategy is to provide integrated Healthcare IT and business process services across the healthcare community of providers, payers, distributors and government </li></ul></ul><ul><li>Build Vs. Buy determination </li></ul><ul><ul><li>Understand your capabilities </li></ul></ul><ul><ul><li>Fill in the capabilities you need to bring onboard in line with your strategy </li></ul></ul>Payer Business Processes Provider Business Processes Payer Platform Provider Platform Offshore Healthcare BPO Claims Services Resource Group Vision Healthsource Advanced Receivables Strategies JJ Wild Health Solutions Design Healthcare Domain Focus
    4. 4. Three Cautionary Tales <ul><li>Straying too far from core business </li></ul><ul><ul><li>Market research example </li></ul></ul><ul><li>Underestimating the importance of Founders </li></ul><ul><ul><li>Public vs. private companies </li></ul></ul><ul><li>Joint ventures, joint obligations </li></ul><ul><ul><li>Disparate growth strategies </li></ul></ul>
    5. 5. Three Success Stories <ul><li>Where is the puck going? </li></ul><ul><ul><li>Consolidating Healthcare Payer market </li></ul></ul><ul><ul><li>Needed a nextgen healthcare platform </li></ul></ul><ul><ul><li>Now, one of four remaining platforms </li></ul></ul><ul><li>No pride of authorship </li></ul><ul><ul><li>Strategic fit with our healthcare unit where we are already the US market leader </li></ul></ul><ul><ul><li>Genesis of key capability/function in our global business process value proposition </li></ul></ul><ul><ul><li>Contributed to leadership talent </li></ul></ul><ul><li>Where is the customer? </li></ul><ul><ul><li>Growth engine for healthcare in the community hospital space </li></ul></ul><ul><ul><li>Basis for a new healthcare solution center </li></ul></ul>
    6. 6. Three Keys to Success <ul><li>Be strategic. Don’t just look for financial fit: </li></ul><ul><ul><li>Accretive to core competency </li></ul></ul><ul><ul><li>Consider reverse synergies </li></ul></ul><ul><li>Integrate with empathy: </li></ul><ul><ul><li>Blend organization and cultures, don’t homogenize. </li></ul></ul><ul><ul><li>Absorb rather than attrite leadership: </li></ul></ul><ul><li>Disciplined integration </li></ul><ul><ul><li>First 18 months planned in advance </li></ul></ul><ul><ul><li>Don’t break it!!! </li></ul></ul>
    7. 7. Acquisition Strategy / Reasons to Acquire <ul><li>Scale operations </li></ul><ul><li>Extend into new industries, markets, geographies </li></ul><ul><li>Deepen customer relationships at acquired company through cross-selling </li></ul><ul><li>Improve practices and processes through knowledge gained from the acquired company </li></ul>
    8. 8. History / Logic of Acquisition at Perot Systems <ul><li>Infrastructure : has been the bedrock of Perot System’s Service Offering </li></ul><ul><li>Applications : capability was scaled globally through JV and acquisition of partner’s portion of JV </li></ul><ul><li>Business Process Management : capability was acquired through acquisition of Vision </li></ul><ul><li>Consulting : capability was strengthened through acquisition of companies that took consulting practices to higher levels </li></ul><ul><li>Engineering Services Outsourcing : launched Perot System’s into extending our capabilities through servicing of new industries </li></ul>
    9. 9. Proprietary and confidential. © 2007 Perot Systems Corporation. All rights reserved. All trademarks are the property of their respective owners. Thank you.

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