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Managing multiple mergers at a time - ingredients for success
The document outlines eight key rules for successfully managing multiple mergers and acquisitions, emphasizing the need for careful analysis and tailored approaches during the integration process. It stresses minimizing risks through structured due diligence, recognizing the complexity of integrations, and planning for success from the outset. The author highlights the importance of adaptability, accurate resource assessment, and having a clear integration blueprint to ensure efficient execution.
Managing multiple mergers at a time - ingredients for success
- 1. MANAGING MULTIPLE MERGERS ATA TIME - INGREDIENTS FOR SUCCESS DR. KARL POPP
- 2. ©Dr.KarlPopp2014 M&A leads are •PROFESSIONAL, • RELAXED, • SUCCESSFUL. Doesn´t resonate with you? Let´s see what we can do about it…
- 3. ©Dr.KarlPopp2014 Rule 1: Lookin the mirror – not the rear view mirror • What? – Analyze and adapt your capability maturity to integrate successfully • Why? – Buyer company and manager abilities to integrate are mission critical • How do we manage it? – Select integration managers carefully – Secure enough capacity for integration work
- 4. ©Dr.KarlPopp2014 Capability maturity problems M&A experience Dedicated M&A resources People incorporate functions to care for acquisition integration M&A experience gap} Resource gaps
- 5. ©Dr.KarlPopp2014 Rule 2: Shakeand bake approach for acquisitions • What? – Structure and tailor the integration approach in due diligence • Why? – It is hard to drive a car while you are building it • How do we manage it? – Make use of predefined work catalogues, integration and management approaches, but tailor them to the specific case
- 6. ©Dr.KarlPopp2014 Rule 3: Minimizeprocess risk • What? – A structured due diligence and integration process is mission critical • Why? – You don´t have time to discuss process during integration • How do we manage it? – Define processes based on work catalogues
- 7. ©Dr.KarlPopp2014 Rule 4: Letothers go through hell for you • What? – WYSIATI what you see is all there is – you don´t foresee what you don´t know • Why? – Avoid disaster • How do we manage it? – Read the book „Deals from hell“ by Robert F. Bruner
- 8. ©Dr.KarlPopp2014 Rule 5: Appreciatethe work. Don´t underestimate it. • What? – Complexity and effort of merger integrations are often ignored or guessed to be too low • Why? – Complexity models are not used • How do we manage it? – Leverage complexity models, see next slide
- 9. ©Dr.KarlPopp2014 1 2 3 4 5 6 7 8 9 10 11 12 Revenue Buyer Revenue Target Buyer Employees Target Employees Operating countries Locations Companies ValueChain Coverage Profit increase Workforce reduction Reduc- tion of sites Cultural changes Source: Prof. Lucks, Siemens Complexity and Effort of integrations Structural complexity
- 10. ©Dr.KarlPopp2014 Rule 6: Failearly in due diligence • What? – There is nothing worse than a bad deal. • Why? – Dramatic cost of fixing things late in the process – Failure is no fun • How do we manage it? – Let failure in due diligence be a viable option – Drive for failure in DD, then for success
- 11. ©Dr.KarlPopp2014 Rule 7: Maximizethe likelihood for success • What? – Define and plan for success • Why? – Reasons and prerequisites as well as the way to success is mission critical • How do we manage it? – Name and monitor success factors – Let everybody know the way to success
- 12. ©Dr.KarlPopp2014 Rule 8: Makeyour day. Blueprint! • What? – On day one you need to execute the integration plan. • Why? – Flawless execution is key. • How do we manage it? – Define a detailed integration plan, together with the target. Before closing!
- 13. ©Dr.KarlPopp2014 Results: Ingredients forsuccess • Analyze and adapt your capability maturity to integrate successfully • Structure and tailor integration approach and M&A process • Avoid deals from hell • Manage complexity and effort • Drive for failure, then for success in due diligence • Blueprint http://www.mergerduediligence.com
- 14. Please find moreinformation here: http://www.mergerduediligence.com http://www.drkarlpopp.com