Organization Design Will Make or Break a Deal
Only about half of companies that undergo organization design during a post-merger integration say it was successful. Leaders can flip those odds by focusing on five imperatives.
Content: Article | Authors: Daniel Friedman, Lianne Pot, Mic Rosiello, Michele Brocca, Travis Meyer | Source: Boston Consulting Group (BCG) | Subject: Mergers & Acquisitions
Take these four actions to help prepare your workforce for hypergrowth
The success of serial dealmakers depends on how well their workforces can absorb and integrate new employees. Helping people embrace change eases this challenge and supports hypergrowth better. Here are four actions you can take today to get to that goal.
Content: Article | Author: Yaarit Silverstone | Source: Accenture | Subject: Mergers & Acquisitions
Doing the Right Deals
How corporate leaders can avoid value-destroying M&A.
Content: Article | Authors: Alastair Rimmer, Gregg Nahass, Hein Marais | Source: strategy+business | Subject: Mergers & Acquisitions
Anson Vuong
The right customer assessment not only reveals the strength of existing customer relationships, but also how primed they are for new business activity. This assessment should be standard practice for every M&A.
Content: Quotation | Author: Anson Vuong | Source: Gallup Management Journal | Subjects: Human Resources, Mergers & Acquisitions
How one approach to M&A is more likely to create value than all others
Two decades of research show that, while large deals still have their place, programmatic M&A strategies continue to create gains in excess total returns to shareholders, at lower levels of risk.
Content: Article | Authors: Jeff Rudnicki, Liz Wol, Patrick McCurdy, Paul Daume, Tobias Lundberg | Source: McKinsey Quarterly | Subjects: Best Practices, Mergers & Acquisitions
Becky Kaetzler
Culture is important in all deal types but particularly when you bring two large groups of people together. Then, the potential friction would be much more visible. And you need to understand the culture of both companies. It is not enough to say, is the target company compatible with us? You need to understand it in a more nuanced way. What are their ways of … [ Read more ]
Content: Quotation | Author: Becky Kaetzler | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
Jocelyn Chao, Becky Kaetzler, Natashya Lalani, Laura Lynch
Designing, managing, and delivering a positive experience is especially important during the post-merger talent selection process—not only for employees offered positions but also for those not selected or who choose to leave. How the HR and integration teams treat the latter groups can have far-reaching effects on workplace morale and the company’s reputation as an employer of choice.
Content: Quotation | Authors: Becky Kaetzler, Jocelyn Chao, Laura Lynch, Natashya Lalani | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
Talent Retention and Selection in M&A
Retaining critical talent and ensuring the right people are in key roles are essential to a successful merger.
Content: Article | Authors: Becky Kaetzler, Jocelyn Chao, Laura Lynch, Natashya Lalani | Source: McKinsey Quarterly | Subjects: Human Resources, Mergers & Acquisitions
Jürgen Rothenbücher
Industries consolidate faster when the share of fixed costs is high. Slow-moving industries are those with few physical assets, such as restaurants, craftsmen, and medical care. Industries moving at a medium speed include automotive, aluminum, and food. Fast-moving industries have the lowest variable costs and high asset intensity, such as software, telecom equipment, and search engines.
Content: Quotation | Author: Jürgen Rothenbücher | Source: Kearney | Subject: Mergers & Acquisitions
Andy West, Jeff Rudnicki
You need to understand the sources [of M&A revenue synergies], and there are three places we can categorize. One is where you sell. That includes new channels, cross-selling to existing customers, geography expansion. Then there is how you sell. This is where the sales force effectiveness or channel coverage matters. Then there is what you sell. Is the deal bringing new products or new bundles … [ Read more ]
Content: Quotation | Authors: Andy West, Jeff Rudnicki | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
How Serial Acquirers Retain Talent
As M&A activity heats up, new research highlights best practices for retention post-merger. The short answer? Plan to pay.
Content: Article | Authors: Claudia Poster, Kenneth Kuk, Steve Allan | Source: Chief Executive | Subject: Mergers & Acquisitions
Everybody Into the Pool
How employee transition pools can generate serious benefits for companies—and reduce job losses—during mergers and other moments of transition.
Content: Article | Authors: Brent Ross, Laura Bowen, Rodey Wing, Steven Berger | Source: Kearney | Subjects: Human Resources, Mergers & Acquisitions
Agile Portfolio Reviews
Divesting with Agility
Research shows that active, efficient reallocation of resources creates better returns for companies than simply standing pat does. Here’s how to make portfolio decisions faster.
Content: Article | Authors: Anthony Luu, Obi Ezekoye | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
Divesting to Win: How Organizations Create Value from Divestitures
Companies divest assets for a variety of reasons, but many miss the boat when it comes to creating value from such events. In fact, more companies lose value than create value following a divestiture. Kearney’s ongoing research focuses on what separates the value creators from the value destroyers.
Content: Article | Authors: Godfred Hansen-Nord, Jason Wehner, Robert Haas | Source: Kearney | Subject: Mergers & Acquisitions
M&A: Does Your Talent Approach Fit Your Deal?
The M&A landscape has changed. Beyond market share and cost synergies, the value of M&A increasingly lies in transformation and growth.
Companies can’t afford to delay transformation for the sake of integration, as it freezes their ability to innovate while competitors surge ahead. Deal approaches need to change, allowing organizations to transform, and talent to flourish during integration.
Using deal intent as a guide, C-suite leaders can … [ Read more ]
Content: Article | Authors: J. Neely, Kristen Andrews, Tim Good, Yaarit Silverstone | Source: Accenture | Subject: Mergers & Acquisitions
Erik Roth
A company needs to be really clear on why they’re acquiring something. If it’s an acqui-hire, then it’s the talent. If it’s a business-model acquisition, it’s the business, the technology, and the IP [intellectual property]. There are lots of different reasons. So first, be super clear on why you’re acquiring something. And then, I always like to say, there’s pitchers and catchers. The pitcher is … [ Read more ]
Content: Quotation | Author: Erik Roth | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
How Lots of Small M&A Deals Add Up to Big Value
New research confirms that companies that regularly and systematically pursue moderately sized M&A deliver better shareholder returns than companies that don’t.
Content: Article | Authors: Andy West, Jeff Rudnicki, Kate Siegel | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
M&A Engines: Revving Up for M&A Success
Large in-house M&A teams are no longer seen as the only game in town. Leading companies are taking charge of their M&A destiny by smartly combining internal and external resources.
Content: Article | Authors: Angus Hodgson, Lieven Caboor, Robert Haas, Soon Ghee Chua | Source: Kearney | Subject: Mergers & Acquisitions
Oliver Engert, Max Floetotto, Greg Gryzwa, Milind Sachdeva, Patryk Strojny
At the start of a typical integration effort, the integration team uses the deal model and due-diligence results to identify opportunities and set synergy targets. But financial due diligence is seldom deep or exhaustive enough to provide a solid foundation for maximizing value because the effort focuses on justifying the deal, not on creating value (in other words, “figure out what to pay for the … [ Read more ]
Content: Quotation | Authors: Greg Gryzwa, Max Floetotto, Milind Sachdeva, Oliver Engert, Patryk Strojny | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions
