A highlight from 111. How SS&C Conducts Acquisitions

M&A Science
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Snc is undergone over sixty acquisitions since nineteen ninety-five the largest today in acquisition of dsp systems at five point. Four billion as doesn't see was taken public in one thousand nine hundred six but taken private again through a leveraged buyout f four hundred ninety two million in two thousand five. Sec went through a second ipo in two thousand ten. Say we're going to talk about lessons. Learned as private and public company acquire. Are you doing today bill. Thanks for having me from. Hey thanks for taking the time with me. One of the things in getting prepped for this interview. Bill found really fascinating. Was your background and essentially reverse engineering your success and looking backwards from the current eighteen plus billion market cap. You have sixty acquisitions. Your story essentially starts in evansville indiana and you grew up as a sibling of one of nine captain of the football team in high school. And then you ended up going the cpa career track which led you down the county extreme and essentially gave early exposure of a so. It would get out of that. As sort of mix of the competitiveness that burning desire to win while also the financial type a component as well do business especially understand numbers emanating is very much a numbers proven process off as true. The numbers always got make sense. So i says he's has been incredible successful acquire ends used these strategic transactions to grow significantly as an organization can you explain this mindset and how it contrast with organic growth. I have spoken about this a number of times that been our view. they have a very talented vote routine. We can always build it but often we have large sophisticated customers. That don't wanna wait. So they want some particular functionality and they want yesterday if we can find the organization that we can acquire and deliver that functionality to one of our clients. It's a win win. Wesley liked to be able to buy things that we can sell into our client base. We have eighteen thousand whites so if we can find something that's going to be attractive to that and then that's a very nice leverage point and then we also like to take what we have because over a hundred products and services and be able to sell it into their client base that you get chances to grow revenue as well as almost all companies that you acquire. You don't really need to cfo. You don't need to lots of what would be considered overhead of the company. Really you can get a chance to streamline that which obviously improve profitability. So when i've heard is time to market bursts building it from scratch expanding on your current prophet or portfolio of products to your existing customers but then also acquiring customers that you can then turn around and sell some of the other products you already have in her portfolio. That's what we think. formula is. And that's what we've executed all what triggered you to start making acquisitions. Sometimes you have a really good product you can buy legacy companies and replaced their product of those customers. Take good care of them given white treatment but then they'll upgrade to your brand new couldn't prop that started back in the early ninety s where we had a product that we bought a couple of companies or products out of companies and then we're able to move their customers onto our new product and that was very effective and so we had that view in have had that view. Ever since we're early acquisitions. These sort of end ally cycle products they essentially acquired and then look to move the customer base. Your product line first couple of war. Yes the first couple later than we went into product extension trying to be able to have things that will complementary and trying to be able to realize that even in the nineties. And it's even more so now. It's accelerated the percents that the complexity around technology in the functional v that these organizations need in order to operate on a day-to-day basis is increasingly They want as few vendors as they have. There's an awful lot of knowledge out but world and there's an awful lot ways to i that knowledge into technology essentially is not going to be able to be all. Thanks all you have to pick your spots. You have to be the best at it and then you have to have great service in order to be able to leverage it. That's not always easy. You have to have people you have to have motivated people trained right you have to have people who are not tone deaf and hire people that are gonna be customer facing and they only open their mouth when they switch fee. That's problem that's a real problem. So you have to be sensitive to that nafta realize it's not what you say. It's what people hear important about having a successful anything it pretty much being able to listen as much as talk as really fair point so started off with some of these and ally cycle products then moved over to more the complimentary products essentially makes a better experience for your customers to deal with on the end of life cycle products. How do you valuate those companies. I've always been interested in find. It difficult is still like a typical purchasing on a multiplier or there other ways of looking at it generally. If you're buying cry out of a company company is primarily interested in. How well can you service that group because want to sell other thing too that kluber and they don't want a bad taste in those now's because they sold it to mir do what you have to take care of them both from sales company who sold it to us company to those customers into we have a number of hainkel. We had bought a city funds services or wells fargo fund service that are other who bought something out of unisys but taking care of those companies customers makes us a great acquirer and that message goes out that if you want to get rid of something.

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