Post acquisition integration mike robinson business mentor
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Post Acquisition Integration Mike Robinson Business Mentor. Challenges of Acquisition. Only 23 % of all acquisitions earn their cost of capital In acquired companies 47% of executives leave within the first year and 75% leave in the first three years

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Post Acquisition Integration Mike Robinson Business Mentor

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Post acquisition integration mike robinson business mentor

Post Acquisition IntegrationMike RobinsonBusiness Mentor


Post acquisition integration mike robinson business mentor

Challenges of Acquisition

  • Only 23 % of all acquisitions earn their cost of capital

  • In acquired companies 47% of executives leave within the first year and 75% leave in the first three years

  • Projected synergies not achieved in 70% of cases

  • 1/3 of acquisitions achieve an increase in shareholder value, a 1/3 destroy value and a 1/3 do not meet expectations

  • In the first four to eight months following a deal productivity can be reduced by up to 50%

  • Sources: PWC, Wharton Management School, Watson Wyatt Worldwide

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Post acquisition integration mike robinson business mentor

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Post acquisition integration mike robinson business mentor

7 Deadly Sins of Integration

Over focus on the legal and financial due diligence

Unrealistic expectations

Failure to integrate expeditiously

Lack of shared vision

Conflicting corporate or national cultures

Not investing adequate resources to complete the integration

Assuming the talent is better in the acquiring company

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Post acquisition integration mike robinson business mentor

Challenges of Acquisition

A study of 190 CEOs, CFOs and other top executives reported that,

“cultural incompatibility is consistently rated as the greatest barrier to successful integration but that research on cultural factors is the least likely to be done as an aspect of due diligence”

Source: Watson Wyatt Worldwide

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Post acquisition integration mike robinson business mentor

Resources for Integration

  • Management elasticity

  • Management capability

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Post acquisition integration mike robinson business mentor

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Post acquisition integration mike robinson business mentor

Avoiding the seven deadly sins

  • Identifying the right target

  • Inform customers as soon as possible

  • Commit resources to the integration process early

  • Recognise the complexity of the integration process

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Post acquisition integration mike robinson business mentor

Application of resources for integration

Resource Investing

Emergent undiscovered risks/issues generating re-work

Slow start

Pre- close Completion Integration

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Post acquisition integration mike robinson business mentor

Application of resources for integration

Resource Investing

Early Investment

Emergent undiscovered risks/issues generating re-work

Coasting Home

Slow start

Pre- close Completion Integration

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Post acquisition integration mike robinson business mentor

Avoiding the seven deadly sins

  • Create a sense of velocity

  • Involve managers from both organisations

  • Take time to really understand the target organisation

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Post acquisition integration mike robinson business mentor

Ask two key questions

  • Who conducts your salary appraisal?

  • Who do you go to when things go wrong?

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Post acquisition integration mike robinson business mentor

Knowledge Management

  • 10% of an organisation’s knowledge is explicit.

  • 90% of an organisation’s knowledge is implicit.

  • Organisations frequently do not codify their tacit knowledge.

  • Source : Professor Nokana

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Post acquisition integration mike robinson business mentor

Where is Wally?

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Post acquisition integration mike robinson business mentor

Where is Wally?

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Post acquisition integration mike robinson business mentor

Avoiding the seven deadly sins

  • Develop a campaign approach to integration

  • Develop a meaningful communication plan

  • Take a proactive approach to building the new team

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Post acquisition integration mike robinson business mentor

Commitment to the team

Developing the Performance of a New Team post-acquisition

Team outputs - performance

Forming

Storming

Norming

Performing


Post acquisition integration mike robinson business mentor

Ben Ainslie’s Role in Winning the America’s Cup


Post acquisition integration mike robinson business mentor

Ben Ainslie’s Role in Winning the America’s Cup


Post acquisition integration mike robinson business mentor

Ben Ainslie’s Role in Winning the America’s Cup

  • Sept 13 Oracle Team US 8-1 down in the series against NZ

  • Bold decision to sack the existing tactician

  • Ben Ainslie appointed to takeover

  • His impact was immediate on the team

  • The team won the next 8 races to take the America’s Cup

  • First Britain to be in a winning boat for 110 years

  • "The Americans were beaten until Ben joined the boat," says Sir Knox-Johnston.

  • "Ben may be risking his life if he visits New Zealand, but there's no question it was Ben's arrival which changed the chemistry completely."

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Post acquisition integration mike robinson business mentor

Sir Alex Ferguson Man Utd 86-13


Post acquisition integration mike robinson business mentor

Sir Alex Ferguson’s Record

  • 26.5 years with Manchester United

  • 38 Trophies won

  • The club had a reputation for players drinking and living the “playboy” lifestyle when Alex Ferguson arrived

  • Sir Alex paid attention to all issues in the club

  • Re-established discipline in the club

  • Built the foundations for succession planning

  • Removed individuals who did not display the norms

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Post acquisition integration mike robinson business mentor

David Moyse – Manchester United

  • Lasted less than ten months in post

  • Finished 7th in Premier League


Post acquisition integration mike robinson business mentor

Louis van Gaal ……


Post acquisition integration mike robinson business mentor

Conclusion

  • Think long … but not too long

  • Think hard

  • Be bold

  • Act decisively

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