The document discusses strategies for surviving and thriving during mergers, acquisitions, divestitures, and other changes in ownership. It outlines common M&A scenarios like selling a company, acquiring another, or merging. It then provides advice on what to expect during a transaction, how to navigate organizational changes, and ways to demonstrate leadership and contribute value. The goal is to help people and companies successfully manage transitions and ownership changes.

1. Surviving And Thriving
During a
Merger, Acquisi0on, Dives0ture
or Other Change in Ownership
July 24, 2013
Presented by Tom Marx
1© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

2. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Tom Marx
• The beginning
• 25+ years in the aNermarket
• 12+ years in M&A
• Products and channels
• AcGve member
2© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

3. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
M&A Survival Summary
3
M&A scenarios
What to expect
How to survive…and thrive
© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

4. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
M&A Scenarios
4
Sell Company;
Divest a
Business Unit
Acquire Merge
Ownership
Events
The role of
Private Equity
(PE)
© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

5. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Sell or Divest
• Exit strategy: planned or not!
• ReGrement and no bullpen
• Accident or illness: sudden death
• Financial challenges
• Disagreements between partners or family members
• Approaches to corporate restructuring
• Eliminate underperforming or capitalize on be`er
performing assets
• Freedom – It ain’t fun any more!
• An offer you cannot refuse!
5© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

6. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Acquire
• Grow or die
• Strategic acquisiGons
– Territory
– Market share
– Economies of scale
– Gain new customers, suppliers,
management, technology
– Take out the low price leader
6© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership
A B

7. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Merge
• Mergers are propelled by many of the same reasons as
acquisiGons
• Shared ownership/equity rather than straight buy-out
• Shared responsibility
• Power and value of the enGGes allow for controlled equity, joint
power to make decisions…strengths or weaknesses of the
parGes defines if merger or acquisiGon
7© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership
A
B
C

8. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Ownership Events
Succession planning gone right:
• Next generaGon moves into leadership
• Seamless
• All on the same page
• Plan successfully executed
8© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

9. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Ownership Events
Succession planning gone wrong:
• Current generaGon won’t depart
• Illness or worse
• FricGon builds, frustraGon grows and finally outside therapy
comes to rescue
• Plan isn’t executed
9© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

10. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Role of Private Equity
• Provide funds/experGse needed to grow the business
• Support succession planning
• Buy out certain family members
• Owner gets parGal cash-out and business grows bigger
• The ulGmate exit strategy
• Result: PE firm now owns a piece (or all) of the rock
10© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

11. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You and The Change
Have you experienced these scenarios?
• Sell
• Acquire
• Merge
• Ownership event
• Private equity
11© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

12. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You and The Change
What to expect?
• Survival
• OrganizaGonal consolidaGon
• Your value to surviving enGty
• Leadership
12© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

13. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You and The Change
The inner sanctum:
• What does this mean?
• How do I get there?
• How will I know?
• How do I react when surprises happen?
13© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

14. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You and The Change
Will I thrive?
• Be posiGve and stay posiGve
• Find ways to drive collaboraGon
• Show objecGvity
• Focus and determinaGon
• Know when to hold ‘em and when to fold ‘em
• And through all this, get your day job done
14© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

15. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Your Company is Selling
• All the prep that needs to happen
• Keeping it quiet—the true meaning of an NDA
• Where do I go to release the tension?
• The ulGmate sign of maturity
• Do I jump ship?
• TRUST! (Competency, Sincerity, Competency)
15© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

16. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Your Company is Buying
• Devil is in the details
• IntegraGon spells success vs. failure
• Planning is important – execuGon is everything
• Building a disparate team
• A great opportunity
16© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

17. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You’re Merging
• Opportunity knocks
• CreaGng financial gain
• Efficiency is key
• Keeping different customers happy
• Do I jump ship?
17© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

18. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You’re Merging
• No room for duplicate expenses
• Changes will occur—they must!
• The foundaGon for successful M&A
• The whole needs to be more valuable than the sum of the parts
• Keep focus on the financial arm, board, bank or PE firm
18© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

19. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Always be at Your Best
• Be a team builder
• Accountable
• Be a decision maker
• Redesign the company’s culture
19© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

20. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Manage Your People
• Retain the best people
• Keep your team informed
• Keep producGvity up
• Handle issues before panic sets in
20© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

21. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Success is ONen Up to You
• Contribute
• Demonstrate leadership
• Listen to points of view
• Find middle ground
• No room for egos
• Find soluGons
21© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

22. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Contribu0ng to Success
• Let go of your beliefs
• Be a magic person
• Build a team
• Get people on the same page
• Break down the fiefdoms!
22© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

23. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Your Leadership Will Shape the Future
• Growth or no growth
• Branding
• Value ProposiGon
• Sales
• MarkeGng
• OperaGons
• Finances
23© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership

24. Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
THANK YOU
© 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership 24
Visit our website for ar0cles and resources. If you would like a copy of
this presenta0on or further informa0on on buying or selling, please
contact me.
TOM MARX
415.453.0844 ext. 106
tmarx@marxgroupadvisors.com
www.marxgroupadvisors.com
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