Post Acquisition Integration Mike Robinson Business Mentor .
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Post Acquisition Integration Mike Robinson Business Mentor www.avondale.co.uk
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Transcript of Post Acquisition Integration Mike Robinson Business Mentor .
Post Acquisition Integration
Mike RobinsonBusiness Mentor
www.avondale.co.uk
Challenges of Acquisition
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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
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
Challenges of Acquisition
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1. Obsessive list making2. Over focus on the legal and financial due
diligence3. Content free communication4. Barnyard behaviour5. Preaching Vision and Values6. Rewarding the wrong behaviours 7. Assuming the talent is better in the
acquiring organisation
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Seven deadly sins of M&A
Identifying the right targetCommit resources to the integration process earlyRecognise the complexity of the integration process
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Avoiding the seven deadly sins
Re
sour
ce In
vesti
ng
Pre- close Completion Integration
Slow start
Emergent undiscovered risks/issues generating re-work
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Application of resources for integration
Re
sour
ce In
vesti
ng
Pre- close Completion Integration
Slow start
Emergent undiscovered risks/issues generating re-work
Early Investment
Coasting Home
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Application of resources for integration
Identifying the right targetCommit resources to the integration process earlyRecognise the complexity of the integration processCreate a sense of velocityTake time to really understand the target organisation
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Avoiding the seven deadly sins
Who conducts your salary appraisal?
Who do you go to when things go wrong?
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Ask two key questions
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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Knowledge Management
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Where is Wally?
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Where is Wally?
Identifying the right targetCommit resources to the integration process earlyRecognise the complexity of the integration processCreate a sense of velocityTake time to really understand the target organizationDevelop a campaign approach to integration
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Avoiding the seven deadly sins
Beer & Sandwiches Team Briefing
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First Lions team to win series since 1974
British Lions 1997 Tour of South Africa
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A high performing culture?
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Resignation of Martin Johnson
Think long … but not too long
Think hard
Be bold
Act decisively
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Conclusion
