post acquisition integration mike robinson business mentor n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Post Acquisition Integration Mike Robinson Business Mentor PowerPoint Presentation
Download Presentation
Post Acquisition Integration Mike Robinson Business Mentor

Loading in 2 Seconds...

play fullscreen
1 / 19

Post Acquisition Integration Mike Robinson Business Mentor - PowerPoint PPT Presentation


  • 90 Views
  • Uploaded on

Post Acquisition Integration Mike Robinson Business Mentor . www.avondale.co.uk. 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

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Post Acquisition Integration Mike Robinson Business Mentor' - morna


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

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

www.avondale.co.uk

slide3

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

www.avondale.co.uk

slide5

Seven deadly sins of M&A

  • Obsessive list making
  • Over focus on the legal and financial due diligence
  • Content free communication
  • Barnyard behaviour
  • Preaching Vision and Values
  • Rewarding the wrong behaviours
  • Assuming the talent is better in the acquiring organisation

www.avondale.co.uk

slide6

Avoiding the seven deadly sins

  • Identifying the right target
  • Commit resources to the integration process early
  • Recognise the complexity of the integration process

www.avondale.co.uk

slide7

Application of resources for integration

Resource Investing

Emergent undiscovered risks/issues generating re-work

Slow start

Pre- close Completion Integration

www.avondale.co.uk

slide8

Application of resources for integration

Resource Investing

Early Investment

Emergent undiscovered risks/issues generating re-work

Coasting Home

Slow start

Pre- close Completion Integration

www.avondale.co.uk

slide9

Avoiding the seven deadly sins

  • Identifying the right target
  • Commit resources to the integration process early
  • Recognise the complexity of the integration process
  • Create a sense of velocity
  • Take time to really understand the target organisation

www.avondale.co.uk

slide10

Ask two key questions

  • Who conducts your salary appraisal?
  • Who do you go to when things go wrong?

www.avondale.co.uk

slide11

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

www.avondale.co.uk

slide12

Where is Wally?

www.avondale.co.uk

slide13

Where is Wally?

www.avondale.co.uk

slide14

Avoiding the seven deadly sins

  • Identifying the right target
  • Commit resources to the integration process early
  • Recognise the complexity of the integration process
  • Create a sense of velocity
  • Take time to really understand the target organization
  • Develop a campaign approach to integration

www.avondale.co.uk

slide16

British Lions 1997 Tour of South Africa

First Lions team to win series since 1974

www.avondale.co.uk

slide17

A high performing culture?

www.avondale.co.uk

slide19

Conclusion

  • Think long … but not too long
  • Think hard
  • Be bold
  • Act decisively

www.avondale.co.uk