1 / 19

Post Acquisition Integration Mike Robinson Business Mentor

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

morna
Download Presentation

Post Acquisition Integration Mike Robinson Business Mentor

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Post Acquisition IntegrationMike RobinsonBusiness Mentor www.avondale.co.uk

  2. 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

  3. 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

  4. This page is intentionally blank !

  5. 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

  6. 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

  7. Application of resources for integration Resource Investing Emergent undiscovered risks/issues generating re-work Slow start Pre- close Completion Integration www.avondale.co.uk

  8. 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

  9. 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

  10. Ask two key questions • Who conducts your salary appraisal? • Who do you go to when things go wrong? www.avondale.co.uk

  11. 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

  12. Where is Wally? www.avondale.co.uk

  13. Where is Wally? www.avondale.co.uk

  14. 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

  15. Beer & Sandwiches Team Briefing www.avondale.co.uk

  16. British Lions 1997 Tour of South Africa First Lions team to win series since 1974 www.avondale.co.uk

  17. A high performing culture? www.avondale.co.uk

  18. Resignation of Martin Johnson www.avondale.co.uk

  19. Conclusion • Think long … but not too long • Think hard • Be bold • Act decisively www.avondale.co.uk

More Related