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DCA 75% of M&As fail or add no value. Here are 10 steps that make them work.
The document discusses the high failure rate of mergers and acquisitions (M&As) and emphasizes the importance of effective integration and communication post-deal. It outlines reasons for M&A failures, including neglecting cultural integration and internal opposition to new structures. Additionally, it recommends strategies for successful M&As, highlighting the need for a clear vision, ongoing communication, and careful management of brand identity and relationships.
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Similar to DCA 75% of M&As fail or add no value. Here are 10 steps that make them work.
DCA 75% of M&As fail or add no value. Here are 10 steps that make them work.
- 1. 75% Of Mergers& Acquisitions Are Failures How To Avoid Dean Crutchfield Associates
- 2. What’s the point? TheProblem of M&As Most M&As fail, by 50%, 65%, 73.374%….. Lack of long term integration management (loses momentum) Post deal communication not handled well Soft issues neglected: culture, problems of retaining key personnel and cross state M&As clashes as a result of pay conditions, 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. Purpose of DiscussionGuide Successful M&As Stimulate your thinking about the issues Demonstrate how brand based transformation can drive top line growth & internal integration Explore possibilities to ensure M&A success Illustrate how the strengths of DCA helps you Dean Crutchfield Associates
- 4. There Are No‘Mergers’ Of Equals The obvious truth Management’s in a hurry to grow Complete integration is necessary to: Cut costs Combine back office systems Release synergies Merge sales forces Blend product lines, etc. Culture & Practice Will Dominate! Dean Crutchfield Associates
- 5. “Merging and acquiring companiesdestroys shareholder value. It is as simple as that.” Mark Sirower, Former Chairman, Goldman Sachs Dean Crutchfield Associates
- 6. Two determinates ofvalue creation 1. How tight the ship is run Typically the successful ‘acquirer’ are those with a history of cost control and productivity, i.e., the ‘acquirers’ culture will be the more successful in directing and getting the most out of the deal. Dean Crutchfield Associates
- 7. Two determinates ofvalue creation 2. The closeness of relationships In M&A, soft is hard and the closeness of relationships with customers, suppliers, partners is crucial. The business that has the deepest rules and the challenge to is to embed the benefits of their knowledge/approach. *Brand architecture plays a huge role here. Is it logos, labels and layers or worlds shared by employees and customers? Dean Crutchfield Associates
- 8. Reasons for Failure Internal Toughkeeping business performing whilst managing the acquisition Not addressing victor & vanquished attitudes Loss of momentum Leadership struggles (diverting/devisive) Inability of managers to lead the people through the transition Dean Crutchfield Associates
- 9. Reasons for Failure Internal Doas I say, not as I do - lack of role models Internal opposition to new ways of working Resistance to new structure Not engaging the workforce, fear of job losses Not addressing conflict and culture issues Dean Crutchfield Associates
- 10. Reasons for Failure External Marketshare does not grow Confused brand identity Publicised promise is difficult to match on the inside Regulators (can) both hinder and help process Existing customers/suppliers no longer remain loyal Shareholders doubt acquisition strategy Dean Crutchfield Associates
- 11. Reasons for Failure External Howdo you manage the absorption of the acquired brand(s) with its own values - operationally and culturally into one ‘family’?….or not? And if so, how should you manage it? How do you absorb the acquired business/brand into your house style? And if so, how should you manage it? Do you permit the business to keep its name under a new holding company ‘group’ concept? Do you manage the M&A as a transitional process, with an initial focus on product marketing and brand rationalization? Do you communicate other dimensions to the added value of the deal beyond simply increasing size, scope and resources? Dean Crutchfield Associates
- 12. A Profitable CapitalManagement Program External Be 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 answers Manage external and internal communication together Have a communication (and integration) plan in place before signing the deal, which includes: Audiences (including unions and work councils) Key messages Timetable Activities and materials Approvals process Responsibilities Dean Crutchfield Associates
- 13. A Profitable CapitalManagement Program Internal Do not over reassure internal audiences by saying there will not be significant changes Ensure regular and frequent communication using both face to face methods (for effectiveness) and digital methods (for timeliness) Focus on survivors not on leavers Do not pretend it’s business as usual Explain 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. A Profitable CapitalManagement Program Concentrate focus on taking the initial steps Planning Announcements and pre completion Early post completion Integration Transformation Dean Crutchfield Associates
- 15. Transformation does not occursimply through somebody in a suit standing up announcing it. There must be a vision. Moreover, it has to amount to more than a few well chosen words. Dean Crutchfield Associates
- 16. Check List A ProfitableCapital Management Program Contact program between management Key messages - internal and external External consultants - who, why and what Interim communication branding Integration tools Integration of communication terms Identify new vision, mission and culture Plan identity and communication strategy Reporting news - internally and externally Communication needs for transformation Process for feedback Dean Crutchfield Associates
- 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 world's 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 levels Dean Crutchfield Associates of success. Let’s grow.
- 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. In the pursuitof 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. Armed WithA 2x2 Growth Matrix & A White Board DCA Rapidly Create Precise Multi-channel Outreach Programs That Generate Immediate Impact Dean Crutchfield Associates
- 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 Doctoring Dean Crutchfield Associates
- 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 you Dean Crutchfield Associates free until you do!