The analogy of property sales to understand company mergers and acquisitions is both accurate and highlights a fundamental flaw in how we think about M&A deals...Read More
It’s remarkable how the focus on cost savings has remained unchallenged for all the years that we’ve been doing post merger integration work. We suspect that the big 4 accountants are to blame, in discounting revenue synergy prognosis to cost synergies.Read More
In what other walk of life can you imagine a situation where the thoughts, analysis and assumptions of one person (or perhaps a small team), drawn up before any access to the subject matter was granted and therefore based entirely on an ‘out to in’ perspective are entirely inviolate?Read More
The second in our series of Unchallenged Rules of Post Deal Integration. This week we look at function led integration which flows from function led due diligence and remains the standard approach. Time for a change?Read More
Why, therefore, does the presumption continue that the acquired leadership team should be immune from an objective review / comparison in terms of their talent and experience with that of the acquired?Read More
All the big name consultancies have used an identical process for delivering mergers and acquisitions over the last 20 years, always sold on fear: “deals fail”, “focus on quick cost synergies”, “revenue synergies are difficult”, and “use our structured process”. They’ve been at this for two decades and we have yet to see headlines that deals are now more successful as a result. We are here to turn the industry on its head, challenge how everything is done and show that there is another way.Read More
Occasionally, if you’ve been in the M&A world for a while, you’ll find a real gem of a business which an acquirer has stumbled upon and bought. It’s a moment of joy as the opportunities which the combined entity offers start to accumulate and you, as the integration director, begin to realise that the real potential is even greater.Read More
People with a little experience perform worse than those with a lot of experience, and those with no experience - a "bathtub" curve. Each deal is different and you can't generalise on the first one and try to implement the second the same way - reinforcing the idea that M&A is a skill that needs to be learned.Read More
Once again we are on the crest of a wave of mergers and acquisitions whereby the very large swallow the very small.
I’m not at all confident that we won’t have the same result as the last time this happened…in the late 90s when the likes of Nokia and others attempted to buy innovation through a series of very small garage / basement based tech driven ventures.Read More
It’s an easy but not particularly insightful assumption to make, that those who develop the strategy for a deal might not be the best equipped to manage the integration process (I’ve written previously about the different skill sets required). What’s more interesting and useful to consider is that, even within the constraints of the integration process, the dynamics vary considerably. So when you’re selecting people for different tasks it’s worth considering whether their strengths lie in sprinting or marathon running…Read More
If there’s one consistent message that we’ve heard over the last 15 years of doing post acquisition integration, it’s this: Big deals are more difficult to integrate than small ones.
Let’s not let size and scale dominate our thinking and pre-determine our effort with regard to integration.Read More