Does Your Company Have an Innovation Strategy? What every Board Member should know.
In light of the changing competitive landscapes, the role of the Board in directing strategy and ensuring long term value growth and marketplace relevance has never been more important.
How to create businesses from new technologies and unique ideas?i-BuC
We, i-BuC LLC, is a company established to support business development and creation, partnering with and providing high-quality and creative support to client companies, public organizations, and research institutes that aim at developing new businesses in global markets.
Does Your Company Have an Innovation Strategy? What every Board Member should know.
In light of the changing competitive landscapes, the role of the Board in directing strategy and ensuring long term value growth and marketplace relevance has never been more important.
How to create businesses from new technologies and unique ideas?i-BuC
We, i-BuC LLC, is a company established to support business development and creation, partnering with and providing high-quality and creative support to client companies, public organizations, and research institutes that aim at developing new businesses in global markets.
Introduzione al software Open Source ed al software libero. Notizie a proposito degli enti (Open Source Software) più importanti e delle licenze più utilizzate.
Souk06 is about adapting passion into a lifestyle. Developing both the technical and creative elements to allow richer interaction for both the creator and the user. This lifestyle compliments itself simply by the inspirational individuals and creative environments that are within.
“Your greatest resource is your imagination."
Reorganization And Hr Strategies In Pmi Presentation Bicocca Trg Labs May 2...Francesco Picconi (MSc,Dr)
A collection of Mergers and Acquisitions Integrations case histories from my first-hand experiences at GE, Fiat, Indesit, Corus, Areva, with lessons learned
Introduzione al software Open Source ed al software libero. Notizie a proposito degli enti (Open Source Software) più importanti e delle licenze più utilizzate.
Souk06 is about adapting passion into a lifestyle. Developing both the technical and creative elements to allow richer interaction for both the creator and the user. This lifestyle compliments itself simply by the inspirational individuals and creative environments that are within.
“Your greatest resource is your imagination."
Reorganization And Hr Strategies In Pmi Presentation Bicocca Trg Labs May 2...Francesco Picconi (MSc,Dr)
A collection of Mergers and Acquisitions Integrations case histories from my first-hand experiences at GE, Fiat, Indesit, Corus, Areva, with lessons learned
attheThomas W. MalnightProfessor, IMDIvy Buche.docxSusanaFurman449
atthe
Thomas
W. Malnight
Professor,
IMD
Ivy Buche
Associate director,
Business Transformation
Initiative at IMD
Charles
Dhanaraj
Professor,
Temple University
PHOTOGRAPHER TOM SHEARER
It’s how successful companies
redefine their businesses.
STRATEGY
Put
Purpose
CORE
of Your
Strategy
AUTHORS
70 Harvard Business Review
September–October 2019
STRATEGY
Eight years ago we launched
a global study of high growth
in companies, investigating
the importance of three
strategies known to drive it:
creating new markets, serving
broader stakeholder needs,
and changing the rules of the
game. What we found surprised
us. Although each of those
approaches did boost growth
at the organizations we studied,
there was a fourth driver we
hadn’t considered at all:
purpose.
72 Harvard Business Review
September–October 2019
Companies have long been encouraged to build pur-
pose into what they do. But usually it’s talked about as an
add-on—a way to create shared value, improve employee
morale and commitment, give back to the community, and
help the environment. But as we worked with the high-
growth companies in our study and beyond, we began to
recognize that many of them had moved purpose from the
periphery of their strategy to its core—where, with commit-
ted leadership and financial investment, they had used it to
generate sustained profitable growth, stay relevant in a rap-
idly changing world, and deepen ties with their stakeholders.
Two Critical Roles
In the course of our research, we talked to scores of C-level
executives. They worked at 28 companies—in the United
States, Europe, and India—that had had an average com-
pound annual growth rate of 30% or more in the previous
five years. What we learned from those conversations was
that purpose played two important strategic roles: It helped
companies redefine the playing field, and it allowed them to
reshape the value proposition. And that, in turn, enabled
them to overcome the challenges of slowing growth and
declining profitability.
ROLE 1: Redefining the playing field. What’s a key
difference between low-growth and high-growth companies?
The former spend most of their time fighting for market share
on one playing field, which naturally restricts their growth
potential. And because most aggressive battles take place in
industries that are slowing down, gains in market share come
at a high cost, often eroding profits and competitive advan-
tage as offerings become commoditized.
High-growth companies, by contrast, don’t feel limited to
their current playing field. Instead, they think about whole
ecosystems, where connected interests and relationships
among multiple stakeholders create more opportunities. But
these firms don’t approach ecosystems haphazardly. They let
purpose be their guide.
Consider the different strategies adopted by the two
leading companies in the pet-food industry: Nestlé Purina
PetCare, the largest player in Nor.
You can use Toolbox materials at work, to link with your blog or when giving a presentation – or forward it to colleagues. The background ideas are available in a variety of web sources.
attheThomas W. MalnightProfessor, IMDIvy Buche.docxjasoninnes20
atthe
Thomas
W. Malnight
Professor,
IMD
Ivy Buche
Associate director,
Business Transformation
Initiative at IMD
Charles
Dhanaraj
Professor,
Temple University
PHOTOGRAPHER TOM SHEARER
It’s how successful companies
redefine their businesses.
S T R AT E GY
Put
Purpose
CORE
of Your
Strategy
AUTHORS
70 Harvard Business ReviewSeptember–October 2019
S T R AT E GY
Eight years ago we launched
a global study of high growth
in companies, investigating
the importance of three
strategies known to drive it:
creating new markets, serving
broader stakeholder needs,
and changing the rules of the
game. What we found surprised
us. Although each of those
approaches did boost growth
at the organizations we studied,
there was a fourth driver we
hadn’t considered at all:
purpose.
72 Harvard Business ReviewSeptember–October 2019
Companies have long been encouraged to build pur-
pose into what they do. But usually it’s talked about as an
add-on—a way to create shared value, improve employee
morale and commitment, give back to the community, and
help the environment. But as we worked with the high-
growth companies in our study and beyond, we began to
recognize that many of them had moved purpose from the
periphery of their strategy to its core—where, with commit-
ted leadership and financial investment, they had used it to
generate sustained profitable growth, stay relevant in a rap-
idly changing world, and deepen ties with their stakeholders.
Two Critical Roles
In the course of our research, we talked to scores of C-level
executives. They worked at 28 companies—in the United
States, Europe, and India—that had had an average com-
pound annual growth rate of 30% or more in the previous
five years. What we learned from those conversations was
that purpose played two important strategic roles: It helped
companies redefine the playing field, and it allowed them to
reshape the value proposition. And that, in turn, enabled
them to overcome the challenges of slowing growth and
declining profitability.
ROLE 1: Redefining the playing field. What’s a key
difference between low-growth and high-growth companies?
The former spend most of their time fighting for market share
on one playing field, which naturally restricts their growth
potential. And because most aggressive battles take place in
industries that are slowing down, gains in market share come
at a high cost, often eroding profits and competitive advan-
tage as offerings become commoditized.
High-growth companies, by contrast, don’t feel limited to
their current playing field. Instead, they think about whole
ecosystems, where connected interests and relationships
among multiple stakeholders create more opportunities. But
these firms don’t approach ecosystems haphazardly. They let
purpose be their guide.
Consider the different strategies adopted by the two
leading companies in the pet-food industry: Nestlé Purina
PetCare, the largest player ...
Harvard Business Review Analytic - philips versus matsushita the competitive ...Golden Gate University
Harvard Business Review Analytic - philips versus matsushita the competitive battle continues
DOI: 10.13140/RG.2.2.14598.63046/1
Project: Harvard Business Review Analytic
case study describes the development of the global strategies and organizations of two major competitors in the consumer electronics industry. Over four decades, both companies adapt their strategic intent and organizational capability to match and counter the competitive advantage of the other. The case shows how each is faced to restructure as its competitive advantage erodes. Philips was founded in 1892 by Gerard Philips in Eindhoven, Holland. Tradition of caring for its workers. Innovation as a core strength. One product focus on light-bulbs (initially) + Gerard’s technological prowess enable significant innovations. Strong research vital to company’s survival. Philips built its success on a worldwide portfolio of responsive national organizations. Matsushita was founded in 1918 by Konosuke Matsushita in Osaka, Japan. “Seven Spirits of Matushita” and cultural and spiritual training are key. First Japanese company to adopt the divisional structure “One-product-one-division” and Internal competition fostered among divisions. Matsushita built its success on its centralized, highly efficient operations in Japan.
Mergers & Acquisitions are often used as part of a
company's globalization strategy, for both intra-regional and international deals. However, substantial number of them fail. Read more to find out the challenges or visit us at: http://www.verityconsult.com
Internal Consulting Units: Support for Changing Industriesinnogy Consulting
Though it sounds counterintuitive, we recommend internal consulting units (ICUs) for utilities looking for an advantage when it comes to innovation, strategy implementation, and profitability.
HR Focus Magazine, #13, March 21st, 2022
Interview with Francesco Picconi
International Business Challenges also go through HR Managers
By Marina Verderajme
Proud to be one of the speakers at the CWI 2021 Global #DigitalHR Conference & Analytics on 23rd -25th March.
"Going Digital" means winning people hearts and brains so that they embrace new Digital Technologies.
And Digital Transformation will bring a sustainable competitive advantage to organizations as long as their employees and partners desire to embed it permanently in their daily behaviors.
Are we ready?
Career Projects: Interpreting your own professional path - GIDP Event, Nov 28...Francesco Picconi (MSc,Dr)
Managing their own career today, and HR Directors are no exception, is increasingly becoming an activity to handle with care. In today's competitive environment it is now critical to understand where you are, where is the market going, to plan change, to get ready on time, to take calculated risks. Even HR Directors, who are the "experts" in planning the others' careers, must be able to understand and plan their own one. We discuss today with Claudio Ceper (ex Egon Zehnder), a recognized authority in the field of Executive Search and Mentoring, in order to obtain some elements to interpret and address our own career path
In this article (in Italian) on L'Espresso magazine, Sept 10th, 2012, Francesco Picconi comments on a survey which shows that blonde employees are paid more than other employees
Collection of Mergers and Acquisitions and Integration case histories from my first-hand experiences at GE, Fiat, Indesit, Corus, Areva, with lessons learned
Repatriation is a key phase in the expats cycle. Planning strategies for managing repatriationa while minimizing attrition. A case from my direct experience at GE
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
1. 1
ACQUIRING FAMILY OWNED COMPANIES
CASE STUDIES AND LESSONS LEARNED FROM AN HR AND
ORGANISATIONAL PERSPECTIVE
4 Regional Integration
Management Forum
Amsterdam, Sheraton Schipol
November 16th, 2012
Francesco Picconi
2. 2
Introducing Francesco Picconi
Group Head of HR at Falck, Italy
HR Director, South Europe & Africa, Areva T&D, Italy
HR Director, BU Corus Colors, Corus Group, UK
Group OD Director, Indesit Company, Italy
HR Director BU, Transolver/Fraikin, Fiat Iveco, France
OD Manager, Automotive Lighting, Fiat Magneti Marelli, Germany
HR Manager Global Marketing and Sales, GE Oil&Gas, Italy
BUT MOST IMPORTANTLY……
A Multicultural HR passionate for M&A, JV, Post-Mergers Integration
in International/ Global contexts
it.linkedin.com/in/francescopicconi/
Phone +39 335 53518752
3. 3
Multinational companies acquiring family owned companies
Multinational company (MNC): to acquire or not to acquire?
“Over the past 20 years, US takeovers by large firms have led to
losses of more than $ 200 billion for stakeholders. However, this
result is dominated by the big losses experienced by shareholders in
big companies” (NBER Working Paper n. 9523)
Family company owner: family succession or selling?
More than 50% of all owners are 50 years of age or older.
Family succession is risky: 70% of all owners fail to successfully
transition their business to their direct heirs.
(Brownstone Capital Advisors LLC)
4. 4
Having successors ready within the family is not sufficient to ensure
long-term sustainability of a family owned company. Trends like:
Market globalization
Business diversification
New technology developments
require capital investments which may be difficult/too expensive to
be obtained by leveraging debt (f.i. credit crunch in Southern
Europe economies)
Therefore, raising equity capital can be the only option to finance
increasingly capital-intensive companies
Conclusion: more and more profitable and promising family owned
companies are for sale
Financing options for family owned companies in crisis times
5. 5
Financing options for family owned companies in crisis times
1. The stock exchange option: creating a public company by
floating a minority or a control stake.
But: is it a real choice in today’s depressed stock market?
2. The private equity option: opening up to financial partners.
But: equity investors are increasingly selective in today’s
less liquid market. Unless a control stake is released, such
deals are today less rewarding than few years ago.
3. The industrial partner option: today MNC’s are constantly
considering family owned companies for acquisitions.
6. 6
Selling a family owned company to a MNC:
the owner’s perspective
As industrial partners, MNC’s are normally familiar with the
business to be acquired and can better understand its challenges
and opportunities.
The acquired company can be placed within a larger industrial
context, where its unique strengths can be put at service of a
larger Group (f.i. new technology/innovation, distribution networks).
The business/industrial knowledge of MNC’s may result in a
longer perspective and/or a better risk assessment in
comparison to a purely financial partner.
Family company owners usually care for the future of their
“creature” and for their employees. In times of crisis, they may
consider that a MNC may ensure a better future for them.
Of course, there are exceptions…
7. 7
Case Histories
OBJECTIVES:
Introducing the case history of a MNC (Areva T&D) acquiring two
family owned companies in Italy (Passoni & Villa and VEI Electronic
Industries)
The reverse perspective: introducing a family owned company
(Indesit Company) acquiring part of a MNC (GE Hotpoint) in the UK
Each case history is presented in terms of:
case description
integration approach
lessons learned
9. 9
AREVA T&D acquires PASSONI & VILLA and VEI
In 2007 Areva T&D, the Transmission & Distribution business of the
French multinational Areva, acquired Passoni & Villa, a 80 year-old
company based in Milan with 30ml € sales and 130 employees from the
descendants of the founders
Areva T&D rationale for buying: among other products, P&V had a
global leadership in HV and UHV insulators (n.3 worldwide after ABB and
Siemens). Areva T&D wanted to focus exclusively on these
products, creating a global central of excellence for the Group
P&V rationale for selling: P&V had a strong “technological nugget” (HV
and UHV insulators) and an outstanding global market potential (mainly
China, India, the U.S.). However huge capital investments were needed
to develop this technology. Moreover, the owners were in their 70s
CASE DESCRIPTION: THE PASSONI & VILLA ACQUISITION
10. 10
In 2008 Areva T&D acquired from the founder VEI Electronic Industries, a 40
year-old Company based in Piacenza, with 46ml € Sales and 360 employees
Areva T&D rationale for buying: VEI had a strong market positioning in
Italy, Spain, Saudi, South East Asia, Russia. Plus, VEI had a technological
leadership in some MV Equipment (Gas and Air insulated switchgears).
Again, Areva T&D wanted to focus exclusively on these products/markets
P&V rationale for selling: the founder was in his late 70’s and no family
members were in condition to take over. Moreover, there was a strong moral
committment to ensure the long-term development of the company and the
well-being of the employees
AREVA T&D acquires PASSONI & VILLA and VEI
CASE DESCRIPTION: THE VEI ACQUISITION
11. 11
INTEGRATION APPROACH
An in-depth “hard” HR due diligence supported by a local consulting
company identified several potential liabilities
(consultants, agencies, social contributions, executive compensation).
In a “soft” HR due diligence, HR interviewed the Key Managers
identifying potential cultural issues with Areva T&D management style .
Areva T&D focused intensively on securing and “converting” the two
GM’s, planning the retirement of one of them after one year.
As the managerial pipeline was dry, in one year both Management Teams
were rebuilt with external or Areva T&D Managers. A “not without you”
approach was chosen, persuading the former Key Managers to stay with
Areva T&D, accepting to report to a new Manager with MNC culture.
AREVA T&D acquires PASSONI & VILLA and VEI
12. 12
LESSONS LEARNED WHEN MNC’s ACQUIRE FAMILY OWNED
COMPANIES
DUE DILIGENCE PHASE
Invest time and money in an in-depth “hard” HR due diligence, possibly
with a local consultant: dealing with family owned companies may
highlight potential liabilities which can even become dealbreakers. In any
case their early identification may avoid future issues.
Invest time in an in-depth “soft” due diligence through structured
interviews with Key Managers: MNC’s often have structured
processes, matrixed organisations, complex decision-making difficult to
be understood and followed by a family owned company culture.
AREVA T&D acquires PASSONI & VILLA and VEI
13. 13
LESSONS LEARNED WHEN MNC’s ACQUIRE FAMILY OWNED
COMPANIES
POST-MERGER INTEGRATION PHASE
If possible, ensure a smooth transition of 1-2 years. It would be ideal to
“convert” the GM (if exists) and let him/her lead the transition phase
In any case, an external GM must gain his/her credibility: often family owned
companies have rhytes and myths connected with charismatic leaders (the
founder and his/her heirs, their trusted GM).
Quickly identify potential “ready-now” successors for all key roles, within or
outside the family owned companies: cultural issues are normal and
possible Key Managers resignations in the first year should be anticipated.
Family owned companies’ organisational model is often “solar”, with the
entrepreneur or his/her trusted GM at the hearth. As a consequence, the
Management Team could often be weaker than expected in terms of
management/commecial/technical relations and skills.
AREVA T&D acquires PASSONI & VILLA and VEI
15. 15
INDESIT COMPANY ACQUIRES GE HOTPOINT
CASE DESCRIPTION
In 2002 Indesit Company, a listed company controlled by the Merloni
family and Europe’s n. 2 in the Household Appliances industry, acquired
GE Hotpoint, market leader in the UK and Ireland. GE Hotpoint at the time
had around 1bn € sales, about 6.000 employees and 6 plants in the UK.
Indesit Company rationale for buying: decision to better penetrate the
UK mature, sophisticated, service-oriented market by acquiring the market
leader. Moreover, some products typical of the UK market (f.i. tumble-
dryers, double oven) could have a larger niche market in Europe.
GE Appliances rationale for selling: GE was reconsidering its presence
in the European market, a mature, relatively low margin business, with a
medium-level technology. Focus on the top level high margin segment.
16. 16
INTEGRATION APPROACH
Over the years, Indesit Company had become familiar with the UK and
Ireland market by setting up a relatively limited commercial and logistics
organization, with Service largely outsourced. Over the years the local
management was ready to take some key leadership roles in Hotpoint.
A “breed” of Italian Key Managers moved to the UK from Russia, where
Indesit had just finished to integrate Stinol, its last large acquisition. The
Stinol CEO, trusted by Merloni family, became CEO at the Hotpoint and
was later nominated Group CEO.
INDESIT COMPANY ACQUIRES GE HOTPOINT
17. 17
INTEGRATION APPROACH
In the first phase, few new processes were introduced in Hotpoint, largely
tied to Finance, Administration and Control. GE Manufacturing, Product
Development, Sales and Service processes were basically kept in
place, while other processes (f.i. Six Sigma) were simply dismissed.
After 3 years of market experience, Indesit Company restructured
Hotpoint, reorganizing its businesses along the Group’s global business
lines (Washing, Dishwashing, Cooking, Cooling, Service), closing down 2
plants and streamlining all the administrative/ transactional functions.
The Company focused on Manufacturing efficiency, the Sales, Service
and Distribution network, in an effort to get “back to basics”.
INDESIT COMPANY ACQUIRES GE HOTPOINT
18. 18
LESSONS LEARNED WHEN A FAMILY OWNED BUSINESS
ACQUIRES A MNC
Family owned companies tend to have a less structured Due Diligence
process, where HR rarely plays a key role. They tend to spend less money
in local consultants for DD purpose. However MNC’s tend to follow rigorous
policies and guidelines, and therefore potential liabilities are normally low.
In the integration process, family owned companies tend to rely more on
trust than on processes: Key Managers are trusted because of their long-
term service and their previous successes in acquisitions integration. The
process tends to be less formalized and more flexible/adaptable.
Family-owned companies tend to refocus the acquired MNC businesses
“back to basics”. Transactional processes are simplified, top-down HQ-
driven initiatives are dismissed.
Not all Key Managers from MNC being acquired by family-owned
companies will withstand the “cultural shock”. Careful succession planning
should be implemented as soon as possible.
INDESIT COMPANY ACQUIRES GE HOTPOINT