17 Burst results for "M. A."

"m. a." Discussed on M&A Science

M&A Science

05:57 min | 5 months ago

"m. a." Discussed on M&A Science

"Large companies.

"m. a." Discussed on M&A Science

M&A Science

07:19 min | 10 months ago

"m. a." Discussed on M&A Science

"We are not generally a developer or owner of real estate. We advise clients on there real estate matters. And so when we talk about Acquisitions in the context of jail on what I do, I'm specifically referring to the opposition of other Real Estate Services firms. What is a talent focused acquisition? So a telephone was that position is largely a services-based acquisition and off the Hallmarks of a talent-based acquisition our situation. We are requiring people requiring people for their skills their domain expertise particularly in the areas of Consulting and advisory and their client relationships particularly in the areas of brokerage as you can imagine jll being principally a Services based organization. Most of the Acquisitions. We do are talent-based but like other firms me to our on our digital Journey here and interested in you know, looking at some technology-based place as well. But for today, we'll be talking about talent-based Dominic. What are the key criteria in assessing? An investment and a talent focused acquisition and if you can describe how you would do the diligence, when we looking at Allen focused acquisition, we're looking at initially a lot of the same things would for any other acquisition in understanding the business model the historical and projected financials Revenue profit and so forth. So all of that is table Stakes, but I think what makes the talent-based acquisition more unique is we're really digging in understanding the employees and the culture one of the things that we are particularly attracted to our situations where the employees of the firm are also the owners of the firm and there is really strong alignment there which enables us to do some things with purchase price and earn-outs to create incentives going forward. We also want to look at how calm the employees are not just to a sale but to continuing on as employees to jail well as closing and that's pretty critical and so we would not be interested in a situation where a group of folks are looking to age. Cash on retired that would be pretty hard for us to get value out of that going forward. It's very important that we have commitment so that we can realize the return-on-investment overall. Make sure there's an ongoing career path to leadership involved absolutely and no leadership is as well all the employees and and that there is also a good training and development model in place as well because not everybody is going to be there forever. Not everybody's going to last forever and we need to make sure that there is appropriate processes in place for knowledge sharing and and training how do you approach planning the structure and valuation of a deal recognizing that the values in the employees and the biggest risk is that you do the acquisition and then as soon you close everybody leaves in your left with nothing, so that's the risk that we're always trying to minimize and how we structure the deal from evaluation perspective. We still employed a very revenue and cash-flow based evaluation methodology, but how we structure that valuation is going to be different for talent-based deal. We tend to pay purchase price over time rather than all at once and use an ounce quite extensively now everybody's got their horror stories about her. Now. It's I'm proud to say by and large they most often worked for us. They've mostly been when when we of course have some scars as well, but they have been a very effective tool in talent-based Acquisitions to new creating that incentive for the owners slash employees to walk to really Drive growth going forward. And then of course, you also use retention mechanisms as well both time days and performance-based retention compensation models. Hips are keys on how do you make an orange successful try to imagine every possible scenario and plan for it in the purchase agreement and then you'll still miss something really gotta get that crystal ball out there. I think for us the key has been in our the way we structure our house has evolved quite a bit over time and I think the biggest area of involvement has been making sure that we are holding the acquired business page. Accountable for things they're in their control. So that's really important to folks coming on board. They don't want to be measure of things that are well outside their control like corporate allocations and expenses that they have no visibility into you have to find a way to integrate but also ring-fence the business at the same time that can be a tricky balance and to making sure that the earn-out is aligned with what you actually want those employees focused on day-to-day. Well, I am not round the variables that team can actually control exactly go tip are there ways in which building a talent Focus structure could be leveraged and other Industries. Absolutely. So I think Tom m&a is really applicable to any Professional Services or business services firm consulting firms advisory firms interior design architecture and you name it. So anything that falls in category is going to largely be focused on talent and they're going to likely employ similar structures and models to the things that yeah. Well does I think in the world of technology dead There's Channel based on Monday and it's more frequently referred to as Apple hires frequently C software companies and Technology firms acquiring talents, but I think the distinction there is in Business Services, you're requiring that challenge for exactly what they're doing today in the technology world, you might acquire that talent and redeploy them to other projects or morphed IP into something a little bit different. It's really using a way to get access to it too. Great development skills typically, but what those people might be doing post closing is more often than not looking looks a little bit different than what they were doing pretty closing. And what does that mean in terms of repurposing the home team that you're requiring or a different projects in the technology world with an echo higher soften an acquisition of a team and maybe plus some intellectual property intellectual property maybe is interesting, but they were not able to monetize it or really turn it into a business. And so the acquirer often will either sometimes scrap that intellectual property completely or take that intellectual property and build it into a wage. Thing else that they are building internally is a way to accelerate development. And so the team the acquired team may or not continue to work on that IP more likely they're going to work on something bigger so and Google and apple other of these types of Acquisitions. They usually got big projects already underway that they need talent for and they'll use that wires to go get that if you're not going to utilize the IP are you actually putting weight on that in your generation? I would think in those situations not so much know you're going to be really looking more hiring costs as your opportunity cost and then the deal structure itself is going to be more heavily weighted towards retention wage, maybe or now if there's if there's a way to measure Revenue going forward and some screwed way, but these deals are often very focused on in a position of just of the talent and then retention around that going forward them to keep that strategic ones on and discard the nice to haves and what ways does the talent focused organization have to change their processes and adapt. I think the most important thing is to keep it open a game. I'm willing to learn from the organizations that we acquire. There's obviously a reason why we're attracted to the firms that we acquire. They're doing something very well. It's important that we learn from them culturally and operationally so we have to be open to adapting our methods our business model in.

talent-based Acquisitions Apple developer Dominic Allen Tom m&a Google Business Services Professional Services
"m. a." Discussed on M&A Science

M&A Science

07:19 min | 10 months ago

"m. a." Discussed on M&A Science

"Bios. We are not generally a developer or owner of real estate. We advise clients on there real estate matters. And so when we talk about Acquisitions in the context of jail on what I do, I'm specifically referring to the opposition of other Real Estate Services firms. What is a talent focused acquisition? So a telephone was that position is largely a services-based acquisition and off the Hallmarks of a talent-based acquisition our situation. We are requiring people requiring people for their skills their domain expertise particularly in the areas of Consulting and advisory and their client relationships particularly in the areas of brokerage as you can imagine jll being principally a Services based organization. Most of the Acquisitions. We do are talent-based but like other firms me to our on our digital Journey here and interested in you know, looking at some technology-based place as well. But for today, we'll be talking about talent-based Dominic. What are the key criteria in assessing? An investment and a talent focused acquisition and if you can describe how you would do the diligence, when we looking at Allen focused acquisition, we're looking at initially a lot of the same things would for any other acquisition in understanding the business model the historical and projected financials Revenue profit and so forth. So all of that is table Stakes, but I think what makes the talent-based acquisition more unique is we're really digging in understanding the employees and the culture one of the things that we are particularly attracted to our situations where the employees of the firm are also the owners of the firm and there is really strong alignment there which enables us to do some things with purchase price and earn-outs to create incentives going forward. We also want to look at how calm the employees are not just to a sale but to continuing on as employees to jail well as closing and that's pretty critical and so we would not be interested in a situation where a group of folks are looking to age. Cash on retired that would be pretty hard for us to get value out of that going forward. It's very important that we have that commitment so that we can realize the return-on-investment overall. Make sure there's an ongoing career path to leadership involved absolutely and no leadership is as well as all the employees and and that there is also a good training and development model in place as well because not everybody is going to be there forever. Not everybody's going to last forever and we need to make sure that there is appropriate processes in place for knowledge sharing and and training how do you approach planning the structure and valuation of a deal recognizing that the values in the employees and the biggest risk is that you do the acquisition and then as soon as you close everybody leaves in your left with nothing, so that's the risk that we're always trying to minimize and how we structure the deal from evaluation perspective. We still employed a very revenue and cash-flow based evaluation methodology, but how we structure that valuation is going to be different for talent-based deal. We tend to pay purchase price over time rather than all at once and use an ounce quite extensively now everybody's got their horror stories about her. Now. It's I'm proud to say by and large they most often worked for us. They've mostly been when when we of course have some scars as well, but they have been a very effective tool in talent-based Acquisitions to new creating that incentive for the owners slash employees to walk to really Drive growth going forward. And then of course, you also use retention mechanisms as well both time days and performance-based retention compensation models. Hips are keys on how do you make an orange successful try to imagine every possible scenario and plan for it in the purchase agreement and then you'll still miss something really gotta get that crystal ball out there. I think for us the key has been in our the way we structure our house has evolved quite a bit over time and and I think the biggest area of involvement has been making sure that we are holding the acquired business page. Accountable for things they're in their control. So that's really important to folks coming on board. They don't want to be measure of things that are well outside their control like corporate allocations and expenses that they have no visibility into you have to find a way to integrate but also ring-fence the business at the same time that can be a tricky balance and to making sure that the earn-out is aligned with what you actually want those employees focused on day-to-day. Well, I am not round the variables that team can actually control exactly go tip are there ways in which building a talent Focus structure could be leveraged and other Industries. Absolutely. So I think Tom m&a is really applicable to any Professional Services or business services firm consulting firms advisory firms interior design architecture and you name it. So anything that falls in that category is going to largely be focused on talent and they're going to likely employ similar structures and models to the things that yeah. Well does I think in the world of technology dead There's Channel based on Monday and it's more frequently referred to as Apple hires frequently C software companies and Technology firms acquiring talents, but I think the distinction there is in Business Services, you're requiring that challenge for exactly what they're doing today in the technology world, you might acquire that talent and redeploy them to other projects or morphed IP into something a little bit different. It's really using a way to get access to it too. Great development skills typically, but what those people might be doing post closing is more often than not looking looks a little bit different than what they were doing pretty closing. And what does that mean in terms of repurposing the home team that you're requiring or a different projects in the technology world with an echo higher soften an acquisition of a team and maybe plus some intellectual property intellectual property maybe is interesting, but they were not able to monetize it or really turn it into a business. And so the acquirer often will either sometimes scrap that intellectual property completely or take that intellectual property and build it into a wage. Thing else that they are building internally is a way to accelerate development. And so the team the acquired team may or may not continue to work on that IP more likely they're going to work on something bigger so and Google and apple and other of these types of Acquisitions. They usually got big projects already underway that they need talent for and they'll use that wires to go get that if you're not going to utilize the IP are you actually putting weight on that in your generation? I would think in those situations not so much know you're going to be really looking more hiring costs as your opportunity cost and then the deal structure itself is going to be more heavily weighted towards retention wage, maybe or now if there's if there's a way to measure Revenue going forward and some screwed way, but these deals are often very focused on in a position of just of the talent and then retention around that going forward them to keep that strategic ones on and discard the nice to haves and what ways does the talent focused organization have to change their processes and adapt. I think the most important thing is to keep it open a game. I'm willing to learn from the organizations that we acquire. There's obviously a reason why we're attracted to the firms that we acquire. They're doing something very well. It's important that we learn from them culturally and operationally so we have to be open to adapting our methods our business model.

talent-based Acquisitions Apple developer Dominic Allen Tom m&a Google Business Services Professional Services
"m. a." Discussed on M&A Science

M&A Science

05:39 min | 10 months ago

"m. a." Discussed on M&A Science

"Channel doesn't work. Now you speak to the art of experience and I appreciate that the 305 forget either request for Marco if you share the hbr article that you referred to in the beginning. Yes. So this is managing yourself as human zoom out and buy Rosabeth Moss Kanter. This is in the March 2011 issue dead. And I love that article because it's like you have to be like two sided like one eyeball on what I need to accomplish this week month now for the p&l and then the other eye has to be on my 17g. What am I learning towards? Where is this Marathon ending up working close to the hours. So last question I have for you guys is what's the craziest thing? You see that emanates hours. You gotta be wrong. Okay, so I was just telling this to kiss and and Rima the other day and individual plays also on this on this session and walk ins we were negotiating and a couple of years now and then we got into the negotiation the other party had brought in like very strong and hostage negotiators right season professionally trained hostage negotiators and integrators who capture all these bad guys have like integrated into the table and we would like dead. Dealing with here. Right but we went to the rigor of that was eye-opening and that deal didn't go through and then we had all kinds of repercussions thoughts on why this company was talking to those individuals and why they came at oh my god, let's point that territory because this was sort of everything about that was a little bit shady and I'm glad we got out and not got interrogated and weren't Acosta just weren't taking hostages interrogations of every day. How about you Reba? Oh my gosh. I wish we had more time in a couple hours our hands or maybe a line or something. But this experience was in Boston and I say that way for a reason and that's all I'm going to say and it was a massage in Boston and it was a demolition business office and we had this pig and we put a lot of lipstick on this pig and you know, we meet several pitches and finally we got some people that you know took the bite so this guy comes in and he was laid first of all wage. Me nervous and like walking around peeking Through the Windows. When's he going to drive in once he driving how many people so I'm in the conference room and I'm looking out and I see this may balk black beautiful my gosh beautiful beautiful car. This man steps out. He is, you know balding and he's maybe like six foot seven and he's big he's huge and he's got a full length mink coat on and it's got jeans and boots and he's wearing pinky rings and he's with a guy and this guy and this is a middle of winter. This guy has on a wife beater and he's off jeans on and I'm like, what is this? And then there's two Escalades behind them would like to spin our Wheels going and I don't know. I'm just a little village girl from Lake Mary in society events see this. It was just unbelievable. It was pretty crazy. And then we sat through the whole reading where this guy kept saying you think you gotta do the deal on my okay? Our what money you gotta do the deal. It was it was one of them difficult deals I've ever done in my life, but it closed and we sold the business and I'm glad it's my past but what an experience cuz I don't think I would have thought those individuals in my normal daily life in suburban Chicago land never happened. Yeah, right. I was like Wow mujhe video like no video the phones away like it was exciting the heart going a little but yeah, it was good though. They're called actually guys took anything in all the action used as time well, because covid-19 demedim a natural event that will be taken out of ebitda moving forward. So just you know, enjoy and do something fruitful. We will move Beyond this time compassion help your friends. There's a lot of people who need help and use the network to log. Exactly be good and be well, thank you. Great. Great guys, I appreciate it. Thanks so much. Thank you. Thanks so much for listening to this episode of m&a science. If you want to stay up-to-date on the podcast and all things m&a science, including our events. Make sure you sign up for our Weekly Newsletter packed Ami science.com m&a teams that use proven techniques deliver better outcomes agile. M&a is a science-based framework that focuses on a responsiveness adaptability and continuous improvements. You can view the whole book online for free at M A and if you're still using Excel trackers and old-school virtual data rooms that charge per page what a rip-off I highly recommend taking a look at deal room deal room is designed for collaboration with internal and external feeds off. Adeel room. To learn more you will also find lots of free resources templates ebooks guides. Thank you again for listening to emanate science. See you next time..

Marco Boston Moss Kanter hbr Rima Reba Lake Mary Acosta M A Chicago
"m. a." Discussed on M&A Science

M&A Science

10:04 min | 10 months ago

"m. a." Discussed on M&A Science

"Manager, that's a very viable path. It goes to the customers close to the product and save the deal also, so I would say be you and I'll just give a personal example. I actually took a job that had a job description that was two sentences and you know, I laugh at them because gosh, you know, that's that's crazy. But what I did end up doing is looking at the description and saying to myself, oh my gosh. This is a blank mandate. I can totally do this thing. I don't even know what the thing is, but I know I can do it. I have young children. I tell my kids and I tell my family members and young people just being you, you know, take a risk. There's never a right time to do the right thing. She just do what you need to do and take the opportunity and I think there are opportunities that are found in the market. I think there are rules that are available in the market that sometimes many people. Smith's because it wasn't written in the right way. It was positioned in the right away. So I would look for opportunities that are unique that give you a unique perspective because that's at the end is what I'm going to create the value differentiation and you so, you know you and your little different have a lot of fun because that's that's okay. I think it actually created for a very differentiated advantage in the market. What about sourcing if I wanted to get away from just asking my friends my circle and just internal thoughts are as another resource, but just out about looking around what resources would you recommend looking into? So I'm come from University of Chicago and back to have the Davis Center for leadership and strategy and they put on some interesting things. Like for instance. Once they have like a ballet dancer and they have the head of FBI in Chicago Bulls. About leadership and what it takes and one of the things I learned from that experience is that interesting people seek other interesting people and so I think having conversations and find venues where people are looking to find something different something intriguing and really selling that proposition. I think people get really excited by it. And I know I've been able to get some wonderful people through that those kinds of experiences and it really just bore out of you know, what do you do what's going on? You know, what's real is yeah, you know what, you know, what would you do on a Thursday, you know, so on and so forth. So those are the kinds of things I think that lead you to the conversations that gets you to an understanding of an individual and I think that's what you have to get to. Yeah. This is hard work right off totally agree with that. I think you need to also look in the unconventional places like Remus. We are not looking the conventional places red and the ability to spot Talent is that, you know, can this guy or gal? I identify Trends wage? They comfortable with uncertainty and ambiguity or tourists enough and they move as the deal requires, right and oh my gosh, so I have to I have to like interrupt you and just a second thoughts so important because this is Sookie deal individual is the case driver of the organization and not a lot of people understand that but Beauty on a point. That was a very bright in my head, but obviously didn't come out. But yeah, you're absolutely right you are the person has friends on or that's the number one race horse of the CEO and you have to drive that deal is nobody else is going to write everyone else is usual p&l. And yeah, I'm following a process and turning out twelve widgets a week always good. So yeah, totally agree. I get excited about that hundred people who do very well if you give them volumes of data to analyze they would powerfully job in two days. It's like so yep. Some job in two hours, right? And exactly that's yes right people like to talk about all we need this analysis. We need best data. We need that data and I'm like in ten minutes, you know, whether a deal makes sense or not, right? Because the way that you exactly structure it in the financial model would just the exact assumptions. It's probably not how it's going to come out at the end. The sausage is a little different at the end of the machine than what you put at the beginning it just that's inherent in the process. And then once you've done enough Selena deals with experience, you can say okay this type of deals. I need to judge just got Outta. Right channel doesn't work. Now you speak to the art of experience and I appreciate that the 305 forget either request for Marco if you share the hbr article that you referred to in the beginning. Yes. So this is managing yourself as human zoom out and buy Rosabeth Moss Kanter. This is in the March 2011 issue dead. And I love that article because it's like you have to be like two sided like one eyeball on what I need to accomplish this week this month now for the p&l and then the other eye has to be on my 17g. What am I learning towards? Where is this Marathon ending up working close to the hours. So last question I have for you guys is what's the craziest thing? You see that emanates hours. You gotta be wrong. Okay, so I was just telling this to kiss and and Rima the other day and individual plays also on this on this session and walk ins we were negotiating and a couple of years now and then we got into the negotiation the other party had brought in like very strong and hostage negotiators right season professionally trained hostage negotiators and integrators who capture all these bad guys have like integrated into the table and we would like dead. Dealing with here. Right but we went to the rigor of that was eye-opening and that deal didn't go through and then we had all kinds of repercussions thoughts on why this company was talking to those individuals and why they came at oh my god, let's point that territory because this was sort of everything about that was a little bit shady and I'm glad we got out and not got interrogated and weren't Acosta just weren't taking hostages interrogations of every day. How about you Reba? Oh my gosh. I wish we had more time in a couple hours in our hands or maybe a line or something. But this experience was in Boston and I say that way for a reason and that's all I'm going to say and it was a massage in Boston and it was a demolition business office and we had this pig and we put a lot of lipstick on this pig and you know, we meet several pitches and finally we got some people that you know took the bite so this guy comes in and he was laid first of all wage. Me nervous and like walking around peeking Through the Windows. When's he going to drive in once he driving how many people so I'm in the conference room and I'm looking out and I see this may balk black beautiful my gosh beautiful beautiful car. This man steps out. He is, you know balding and he's maybe like six foot seven and he's big he's huge and he's got a full length mink coat on and it's got jeans and boots and he's wearing pinky rings and he's with a guy and this guy and this is a middle of winter. This guy has on a wife beater and he's off jeans on and I'm like, what is this? And then there's two Escalades behind them would like to spin our Wheels going and I don't know. I'm just a little village girl from Lake Mary in society events see this. It was just unbelievable. It was pretty crazy. And then we sat through the whole reading where this guy kept saying you think you gotta do the deal on my okay? Our what money you gotta do the deal. It was it was one of them was difficult deals I've ever done in my life, but it closed and we sold the business and I'm glad it's my past but what an experience cuz I don't think I would have thought those individuals in my normal daily life in suburban Chicago land never happened. Yeah, right. I was like Wow mujhe video like no no no video the phones away like it was exciting the heart going a little but yeah, it was good though. They're called actually guys took anything in all the action used as time well, because covid-19 demedim a natural event that will be taken out of ebitda moving forward. So just you know, enjoy and do something fruitful. We will move Beyond this time compassion help your friends. There's a lot of people who need help and use the network to log. Exactly be good and be well, thank you. Great. Great guys, I appreciate it. Thanks so much. Thank you. Thanks so much for listening to this episode of m&a science. If you want to stay up-to-date on the podcast and all things m&a science, including our events. Make sure you sign up for our Weekly Newsletter packed Ami science.com m&a teams that use proven techniques deliver better outcomes agile. M&a is a science-based framework that focuses on a responsiveness adaptability and continuous improvements. You can view the whole book online for free at M A and if you're still using Excel trackers and old-school virtual data rooms that charge per page what a rip-off I highly recommend taking a look at deal room deal room is designed for collaboration with internal and external feeds off. Adeel room. To learn more you will also find lots of free resources templates ebooks guides. Thank you again for listening to emanate science. See you next time..

University of Chicago Boston Selena FBI Smith CEO Moss Kanter Chicago Bulls Rima Lake Mary Davis Center M A Sookie Reba Marco Chicago hbr Acosta
"m. a." Discussed on M&A Science

M&A Science

07:51 min | 10 months ago

"m. a." Discussed on M&A Science

"And Industrials looking for ten years of having experienced. Today's discussion is a talent Gap in m&a. Everyone mentions and sells on the high failure rate having a at the end of the day doing deals is all about people the right strategies key, but more important is having the right people to execute I've seen a myself is a lot of m&a teams that aren't built out to do the deals. Well today, I'm bringing in experts with experience to wait on this so to kick things off was changing. The market wage is requiring a different need and talent you want to kick that often. Yeah, absolutely. So as I always say the business has changed drastically over the last ten fifteen years. I think I found particularly has remained the same as the same rigid playback same rigid process up front. Let's go back to Union and was changed. There's a number of different trends that are impacting. How a minute. True too wet. There is a delineation between the M&M process and value creation when I see how many process it's all the usual stuff integration management even planning check out. As Pearson energies and things like that. I think that has got his own place structure rigorous discipline. The value really comes in from creating value from the functions or creating value from a foundation of Destruction and functions. So the value Creations is really created by strategy and operations while the remote turns the correct. So that's one big Trend second many people sort of fall off the Chevrolet place in the choir, right? So the definition of a ceramic wire was doing consolidation Burgers back in the first part of this Century, right and now you have consolidation murders you imagine dragons you back wires. You come out Integrations and you name it if the people will cost around this, you know, occasional serial frequent. So I think there's no serial acquirer you a Serial acquirer of a certain age are given point in time. So you're a universal blame doesn't really apply right you live emerging disciplines like technology diligence and Commercial diligence in wargaming. I mean, lots of people are dead. Digital stuff now so bringing the technology is where the value is locked. You need to understand the stability the interoperability performance scalability all of that. There's that wage happening execution under uncertainty is a big deal. Right? I mean the market environment is changing does a whole bunch of structural changes take a look at go with great. You can run a play with now because you're off these are modeled in for a deal that was in flight. And now it's kind of, Parts. What are you going to do? If you run your mercy real flavor? I don't think that's going to create value bother to more friends. One of them is that I think synergies starting to mean less now, it's really about shareholder value traditionally people thought about costs energy Revenue Synergy. Now, you're talking about sequence of reciprocal structural beta synergies and all of that rates. There's a lot of the stuff going on the biggest change in my mind and how to create values the breakdown of functional integration and dividend destruction integration. Also integration was when you sort of Rome, Companies together combined the functions groups and combination of value to cut costs created a secret skill but you can't take that approach and move it into the structural part of it off industry structure and destruction is altering the landscape altogether, but the thing is about structural synergies and revenue synergies very you need to get the whole Machinery cross-functionally firings. You can figure your I move value everything is changing. The Advent of platforms is the new thing for Punk of the values outside the firm right? Think about an Uber or Airbnb your community management is the new HR rate. Your marketing is Dave roles and all these things know how do you contain functional integration approach moving to structural to a platform life has evolved a little bit right? So that's sort of where I see many of these Trends and deviating from the best one of the changes you see in the market Reba. I would just say very simply that I think the financial engineering element in deals has been optimized so dead. Really individuals have to look harder to have to think harder and they have to really think about what is the Strategic value of what it is though that we have to do in terms of a deal structure and I think a lot of times what happens is that people, you know think of a deal is just making a widget and it's not making a widget you really have to think about how does this fit into the organization? What's the optimal structure for the organization to take advantage of the initial investment Theses that actually brought the deal forward. I also think another important thing. I want to pull out the Newtons folks who was a need for operational leadership. They really need to be in stride with your m&a team group lead. Whomever. If you don't have that kind of operational by in fact, I'm not going to see any of the results that sold the deal in the first place and if you don't have that, you're really setting yourself up for failure and I think a lot of times people think oh, you know, it's Jeff. Great deals a great multiple and it's going to be but really to me I didn't have to take a step back and think about how does it fit into the bigger picture? I really gets to one of the core competencies. I think you know, it's a nice to have quite frankly in an individual was running anime. M&a excuse me is really the ability to zoom in and then Zoom act so long. You gotta know the nuts-and-bolts of deal itself, right? And there's a hbr study that's based on this but I will apply it to M&T here is the ability to zoom. In fact the mechanics the innards of the deal, but then be able to zoom out and say well this is how it fits into the bigger story and you gotta be aligned to the bigger story and every organization has a story and if you don't know it then I thought that's an issue in onto itself because that's why you should be doing the m&a. So there you have it. That's what's changing. So, where is he a lot of different things happening with the deal's off? Which is around the deals. I think this is a good segue into what are the specific skills that are required for this current changed Market, you know absolutely can take a start for that. So as the deals of moved from a consolidation into the stuff that I just talked about right across industry has kind a countdown image degrees of freedom. If you think about the world functional expertise, if you are doing Finance ideas are real estate and supply-chain to an extent largely get across Industries and understand the Emily process and the process is very similar right A lot of these things are now being done in a front office where the product is fundamentally different. You cannot go to a company or some executive and say hey, I'm a product development expert type across Industries the chemical formula of a drag off the manufacturing process of refrigerated building software very different. So because those are different the configuration of the front of his altars very drastically, right yourselves is different in marketing is different you prod Customer experience pretty much everything becomes different and you use this model has emerged around that to the industry is produced which was really important at the top is now kind of sinking to the boss not saying something with industry expertise, but that's becoming more and more important at the moment in terms of the skillset. Also, the center specific stuff is emerging because business models are song even even inside if you take high-tech largely played in a hardware model or semiconductor model in a software model or very different so that it really need to understand the business model on how the deal is cattle-raising a go-to-market motion and a product and able to scale that to take the structural forces and create the revolutionaries is.

m&a Airbnb Newtons Rome executive Dave product development Jeff
"m. a." Discussed on M&A Science

M&A Science

07:15 min | 10 months ago

"m. a." Discussed on M&A Science

"Patel founder and CEO of deal room. I spend ten years and have been advised her and after seeing a whole slew of industry-wide challenges in 2012, or I decided to pursue the dream and build the greatest software to manage emanate today joining me is nitin Kumar CEO of a pandemic name is a 20-year m&a veterans worked on over a thousand emails on all sides including emanate strategy commercial operational technical diligence integration separation. Most Diesel Performance Improvement for private Equity. Also joining me. Today is Thursday Franklin resident of Franklin Consulting Services. Rhema has held several corporate development roles and Industrials looking for ten years of having experienced. Today's discussion is a talent Gap in m&a. Everyone mentions and sells on the high failure rate having a at the end of the day doing deals is all about people the right strategies key, but more important is having the right people to execute I've seen a myself is a lot of m&a teams that aren't built out to do the deals. Well today, I'm bringing in experts with experience to wait on this so to kick things off was changing. The market wage is requiring a different need and talent you want to kick that often. Yeah, absolutely. So as I always say the business has changed drastically over the last ten fifteen years. I think I found particularly has remained the same as the same rigid playback same rigid process up front. Let's go back to Union and was changed. There's a number of different trends that are impacting. How a minute. True too wet. There is a delineation between the M&M process and value creation when I see how many process it's all the usual stuff integration management even planning check out. As Pearson energies and things like that. I think that has got his own place structure rigorous discipline. The value really comes in from creating value from the functions or creating value from a foundation of Destruction and functions. So the value Creations is really created by strategy and operations while the remote turns the correct. So that's one big Trend second many people sort of fall off the Chevrolet place in the choir, right? So the definition of a ceramic wire was doing consolidation Burgers back in the first part of this Century, right and now you have consolidation murders you imagine dragons you back wires. You come out Integrations and you name it if the people will cost around this, you know, occasional serial frequent. So I think there's no serial acquirer you a Serial acquirer of a certain age are given point in time. So you're a universal blame doesn't really apply right you live emerging disciplines like technology diligence and Commercial diligence in wargaming. I mean, lots of people are dead. Digital stuff now so bringing the technology is where the value is locked. You need to understand the stability the interoperability performance scalability all of that. There's that wage happening execution under uncertainty is a big deal. Right? I mean the market environment is changing does a whole bunch of structural changes take a look at go with great. You can run a play with now because you're off these are modeled in for a deal that was in flight. And now it's kind of, Parts. What are you going to do? If you run your mercy real flavor? I don't think that's going to create value bother to more friends. One of them is that I think synergies starting to mean less now, it's really about shareholder value traditionally people thought about costs energy Revenue Synergy. Now, you're talking about sequence of reciprocal structural beta synergies and all of that rates. There's a lot of the stuff going on the biggest change in my mind and how to create values the breakdown of functional integration and dividend destruction integration. Also integration was when you sort of Rome, Companies together combined the functions groups and combination of value to cut costs created a secret skill but you can't take that approach and move it into the structural part of it off industry structure and destruction is altering the landscape altogether, but the thing is about structural synergies and revenue synergies very you need to get the whole Machinery cross-functionally firings. You can figure your I move value everything is changing. The Advent of platforms is the new thing for Punk of the values outside the firm right? Think about an Uber or Airbnb your community management is the new HR rate. Your marketing is Dave roles and all these things know how do you contain functional integration approach moving to structural to a platform life has evolved a little bit right? So that's sort of where I see many of these Trends and deviating from the best one of the changes you see in the market Reba. I would just say very simply that I think the financial engineering element in deals has been optimized so dead. Really individuals have to look harder to have think harder and they have to really think about what is the Strategic value of what it is though that we have to do in terms of a deal structure and I think a lot of times what happens is that people, you know think of a deal is just making a widget and it's not making a widget you really have to think about how does this fit into the organization? What's the optimal structure for the organization to take advantage of the initial investment Theses that actually brought the deal forward. I also think another important thing. I want to pull out the Newtons folks who was a need for operational leadership. They really need to be in stride with your m&a team group lead. Whomever. If you don't have that kind of operational by in fact, I'm not going to see any of the results that sold the deal in the first place and if you don't have that, you're really setting yourself up for failure and I think a lot of times people think oh, you know, it's Jeff. Great deals a great multiple and it's going to be but really to me I didn't have to take a step back and think about how does it fit into the bigger picture? I really gets to one of the core competencies. I think you know, it's a nice to have quite frankly in an individual was running anime. M&a excuse me is really the ability to zoom in and then Zoom act so long. You gotta know the nuts-and-bolts of deal itself, right? And there's a hbr study that's based on this but I will apply it to M&T here is the ability to zoom. In fact the mechanics the innards of the deal, but then be able to zoom out and say well this is how it fits into the bigger story and you gotta be aligned to the bigger story and every organization has a story and if you don't know it then I thought that's an issue in onto itself because that's why you should be doing the m&a. So there you have it. That's what's changing. So, where is he a lot of different things happening with the deal's off? Which is around the deals. I think this is a good segue into what are the specific skills that are required for this current changed Market, you know absolutely can take a start for that. So as the deals of moved from a consolidation into the stuff that I just talked about right across industry has kind a countdown image degrees of freedom. If you think about the world functional expertise, if you are doing Finance ideas are real estate and supply-chain to an extent largely get across Industries and understand the Emily process and.

m&a founder and CEO Franklin nitin Kumar Patel Rhema CEO Franklin Consulting Services corporate development Airbnb Newtons Rome Dave Jeff
"m. a." Discussed on M&A Science

M&A Science

05:25 min | 10 months ago

"m. a." Discussed on M&A Science

"Not sure if you saw the Google spreadsheets demo where they have a similar example where you can essentially ask a spreadsheet of data question it all synthesized and give you a response back. Do you foresee the valuation of firms diminishing down due diligence to ongoing Kovac crisis. If yes, you see and recommend this to be the right time the eat deals if you exclude companies in financial trouble. The first question is who wants to sell their company in the cold with crisis if they are financially viable, so it's not a market out there. We can say Oh No Doubt With this strategy is can easily buy cheap companies if they don't want to sell you because they want to buy evaluation and you have a tough time to cherry-pick very good companies were very low price again, unless they are in financial trouble and you come in as a savior. It really depends on the specific market for Target companies that you're looking at even if the valuations quote unquote in theory will go down cause all the projections Etc might be not very good with three crisis numbers off. It's really I think still a tough Market Because by the founder you don't want to sell if the market is down maybe see more companies using automation during the covid-19 shut down or has it slowed down prices no matter if it's Financial or health or others is always creating pressure for companies to increase productivity to lower coughing. And it usually leads to an increase in Automation. And that's also what we see today from an sap point of view as a p has always been sailing through Christ is you know, very healthy manner because crisis creates need for more automation. There's no question about it. I would agree with I think that's what I've heard quite a few times. I wonder what your thoughts are in a meeting your m&a process and how you may be able to do trending across multiple Acquisitions. So they are tools out there. If you look at for example companies like mid-month or others that basically provide you with portfolio management and overview of potential careers and different cases and also an Athletics across different fields that will be done that are in due diligence and our integration to have like an end to Process Management tool. They will be a lot of opportunity wage. Is to compare different companies different integration projects different swim Lanes in the pre deal faces for the selecting different companies. I think that is all the way out there. I haven't looked at very detailed what exactly is there, but I've seen some glimpses of Frosty across process analytics that it used to know, are improve things that you're doing in different views last question doctor Carl. What is the craziest thing you've seen in m&a? Yeah. I think one of the craziest thing is what I call a cascading Integrations to basically acquire a company who has acquired another five to ten companies and you want to integrate the company, but what happened in the past the other thing companies were in integrating so you may have to integrate eleven companies instead of one so that certainly the huge challenge to integrate a lot more companies entities operations than wage. 4C before you jump into two Villages that tends to lead a pretty big mess. The girl. I really appreciate your time today in this conversation may be coming out you want to sort of add a little color or where people can learn more about it. Very simple go to my website of the call Pop. And there will be information about this great job. Thank you very much. Thank you for taking the time to explore the world of m&a with our podcast off. Please subscribe for more content and conversations with industry leaders. If you like our podcast, please support us by leaving a 5-star review and sharing it. I enjoy hearing feedback and connecting with our listeners home. You can reach me by my email. It's kissan k i s o n at deal room.

m&a Google doctor Carl founder Target
"m. a." Discussed on M&A Science

M&A Science

07:58 min | 10 months ago

"m. a." Discussed on M&A Science

"Improved with age. A technology. Can you tell me about some of the tools that can help it's hard to get an overview right now what tools out there? So one thing that's definitely missing is transparency on which tool available for which tasks and how do they compare today? Every practitioner would have to go get all the tools out there and then find his own decision Matrix and then decision that's a very tedious task what we need and you mentioned that and you run this community as an exchange of information of experiences just feedback from using things like conflict analysis or analytics or natural language processing of documents in the data room and share it in the community. So in Germany, we have a very active Community with several working groups and specific topics regarding automation since about two months. We also publish some of the results also an English language from the phone number. Association of m&a in our magazine which is called m&a ramble on the website M A Midas review. We could have a look there. It's a running discussion should be applications Etc. Yeah, that's actually really interesting how you have the network and you're sharing some of these ideas with m&a science. The initiator was the fact that all these drug companies have their own approach and I really focus on a lot of the people challenges that seems to be some of the most difficult things to really solve. I don't think you could automate that stuff. I think there are certain things where we look at maybe more of the Box activities like bear. Hey, we're looking for some pretty obvious things that are essentially the Doomsday tomorrow type of risk and hey, we got tons and tons of employment contracts customer contracts to really suck lies and look for the variances which may identify other risks the human the part. We still have to do that and I think that's been the area of focusing around the practices there, but it's also certainly let's say you have in fact Since you have a question, something seems to be questionable. What's happening around the customer. Let's take a fantasy name, like for example, and you say hey this customer Porsche what's cooking and you should talk to the person at the Target company even in this situation. You could have support from a tool that shows all the relationships around this entity that bush and all the information we have in the data room to give you a background without having to look through their hundred thousand documents in the data room found this customer Bush and his complaints for example, when drilling deeper into this topic so clearly person to person is important but it's also augmenting and assisting in using all the data in the data room. That was single person is not able to capture as a home. Yeah. That's actually interesting view when you look at Autumn page. And where are the essential goals out of that? The perfect automation would be basically two things you have an end-to-end platform or data integration layer. You would have a job opportunity to plug in different specific tools for specific tasks into that and you're able to apply all the magic that we talked about evil. And also coupling data from different phases in the m&a process go back and forth and use the capability to not only compute but also analyzed interpret large amounts of data to ensure you're basically cutting out a lot of the Tactical craps. So people can focus more on the high-value activities actually create value. Absolutely. Have you seen my interest in this or are people pretty satisfied with their current structure? Yeah. There's a lot of interest in this the key thing that keeps people in m&a and Cooperative off. Documents from rapidly adopting tools is it takes time to get a little more transparency? What's cooking in the market and also some time to prep bullet proof that the solution is really the right one to use for screening or other activities and m&a process and there's lots of screening tools out there with lots of automation but not hard to figure out today without having time to try ten different solutions. What's the right solution for you? And this is where we need to put in some work and share experiences this information to have an easier time to select Solutions which are right for the tasks that you want to automate. I'm curious if maybe some of the most recent things you've worked on that you see some pretty early signs that you're hopeful around. I think that we will see widespread use of specialized end-to-end m&a project management platforms home. Which are with always all the data room, but they basically run from a let's say portfolio management strategy screening all the way through the integration either the data will provide us kind of fan out in the other phases or specialized project management system providers will provide that Slayer and would need to plug in both rooms that's already there. And that's a good starting point to further specialized automation tools, like for example legal analysis of contracts that data roam. It's also already there. So a lot of good stuff that's interesting. I think got a good point where there's always that Central repository of information, but then extension comes in forms of a wage is to really be able to plug that in and Central we're starting to see that but then I think that also enables independency of companies to really focus on Niche technology, but then still bring it back. Into that essential platform Kia basically to know what are the data? I need in different phases for example in screening to compare different companies cetera and then apply off everything on top of that faced on a quote unquote standardized API model. So that's where we should be going. Hopefully in the advisor more challenging to integrate the businesses post office day and activities involved in the course of preeminent. That's a very good question and it's a widespread problem. I think that what you have to do is basically two months Focus as early as possible on questions and issues and problems and budgets and would have you regarding the integration. So in SAP with massively change what we do I think you do diligence we focus a lot on how we can make the integration successful. So we look at the target, of course to all the target due diligence, but it's dead. Time we also do a preliminary integration planning and also trying to harden our plans to make them bulletproof. Make sure we have the budgets and resources of things. We see coming up in post-match integration. And we do one thing which is we have the same people for example in product due diligence and in the integration project regarding product aspect and that has increased the position of due diligence results a lot because the same person who has to stand the challenges in the aggression based on the analysis that you have done in the due diligence and that helped a lot to ease the pain that many companies in integration. If you start early if you have the same people doing that that helps a lot too quickly improve what you do in due diligence to do better better. Each.

m&a bush Germany Porsche advisor SAP
"m. a." Discussed on M&A Science

M&A Science

08:13 min | 1 year ago

"m. a." Discussed on M&A Science

"For Awhile and so can be on off or that. Officer process have a point of view we've been looking at for awhile spent on radar and I think you. least. Here I think. Is You one of the other US Rakija rationale. Feel Allied and then assuming you Adila lying in the next round when it's time to submit your final bid WanNa, go back to the whatever the relevant governs body is doing more detail which. Use, I give. It is the framework for then you fill in some of them were but it shouldn't be reader all the diligence. The our executives are assume that we've done all that. They'll want to know. But I think as you know to the extent that we have were all on this on this rational Ambi. More. Color on master-plan endure. Importantly, we explain how we're going to do the integration and who's the all and? Get. An eye level alive mitigation I. think that is one area that are really. Focused on is understanding integration because as I said I, think if you look at the literature out there reasons why acquisitions ill is some in Derby something rational seventy, five percent I made percents because something went wrong and. Attrition Planning Range Rich. Execution. and. He knows that from some of experience, but also seeing what others happens others in. So they're very interested in seeing that. Time we'll. We'll stay on back to the paper they full. It's rich, it's a virtual state. As actually interesting and good to hear that you're bringing that up into the proven process at on Cessna this comment I. I'm pretty convinced to companies have a similar approval process era and it'd be pretty unique company company. Yeah. So I think the earlier at least for my perspective and end on this year end. Earlier that you can get your executives read into a deal better than instant. Give you more act on. You know when you're in the process able to. Submit an ally being able to say you know this has the. CEO. Of the? Appeals see is is an important. This'll be an interesting round table discussion actually or together. Few Different Lens. Round this. I. Want to get into this the whole view around where we started getting into a little earlier about defining success of acquisition. Basically, I should the success of acquisition he measured. Yeah. I, mean. At the end of the day, it really should be on the how well you've attained a strategic and. Anshu rationale was laid out at time of closing. At every organization I've been at I made sure that does that position we have acquisition is at regular intervals. So you don't care. We do it every six months, the first two years. Of acquisition may do it more frequently may go further ears, but they're really sort of. Three things that we're trying to accomplish one is you know there was some key strategic brash now that reset out so be. immortalized. Closer some key NANTEUIL metrics stat or set out the back position, and we moralizes snapshot projections some metrics. Six foliage in an for months, we look at our reforming along this. Now. So of along are we in the sheep of each strategic? FROSTED, the acquisition has one switching. You know once strategic thrust. Proven to be unattainable or not relevant. And then we see how we're doing on itchy up the NANTEUIL projects. And extender divisions we explain. The under or over performance navy and I think they're really Two reasons we do this the biggest Israelis so that we can learn from what worked well That you know we going forward. We can focus on the areas where you need to do better. I. Think you know as amid previously, you know invariably most of the time that were off on our projections. Is Not because he didn't estimate cost synergies correctly, those actually be pretty good job. Estimate those most ner control, but it entity be around refugees and those the timing of the achievements, revenue synergies and the old. Researches. That's not surprising. Those office. Thanks to get right because all kinds of factors. Customers to competition now. People tend to underestimate the difficulty of cheating house. I like the idea of the model it rates. Earlier stages of diligence and your benchmarking against that model at the time quote. A gives you that time to. Take which you will from what you learned in diligence adjusted with your assumptions, you validate them and get the information, and then when you go through that, you obviously have strategic goals in some financial goals to measure up against the model. Does that play out when you start integrating the company? Because don't you integrate the financials at some point and bring it together? Well. No, absolutely. So I think. When you're doing the modeling. Year. Not, only doing the modeling of a standalone. Company doing it combined Okay Yes so so so you know I think you may. Model. The act was armed something integrated into existing business. I may decide to model the standalone business and synergies separately, but then later those into the existing. Together. enhance. Of. At, it. Okay. Then you do you have them separate, but then you can still benchmark on a bad, but I can still I can still measure usually a you know how much of the? Combined Company, a farming I can still usually track synergies. I think again. You're raising an issue that which is why you don't usually want to go further to yours because she measure how much of the performance of the larger entities from the Senate versus based doesn't gets more difficult as you go further out. That's why we want to measure it for two years out. But I think likewise, if you're bliss, your aren is Enron. Where not? Two innings, this business you still can measure. Performance but you may you know tears Zagla, she made the nother acquisition. Case, it starts to get more and more obligated to measure not so I think. You know you'd be flexible and you know exchanged metrics based on on. Subsequent acquisition, but I think measurements says more years out. All matter for a wanted. Somebody can make nap for that measuring post success in. That would be good. I got a question here from Jeff, that sort of ties into the biggest contributions of failure I had on my list. But what have you.

Combined Company US Adila Officer Cessna Derby Senate Anshu CEO Zagla Jeff
"m. a." Discussed on M&A Science

M&A Science

05:42 min | 1 year ago

"m. a." Discussed on M&A Science

"Seventy choose from just choose one under. Be Really quick question with a finance company. They bought a business quite big business that three hundred million business, so winston, pleasant transitional period, and then the Selah was provided, decided the infinite wisdom to turn off the IT services. They just basically pulled the plug on all the various services and there wasn't a business. Any longer. So, it was gone. It was no business and for nearly day there was no nothing happening people standing idly by while people are busily in the IT department plugging says back in so. That was a business that was gone for nearly die and I thought that was pretty don crazy. They took them off line. That took him up. There was no business for nearly a Kevin I. Think the craziest thing I've seen ever. Actually wound up in litigation over it had a company that was an it contractor that we bought. And there's a pretty heavy earn out, and the earn out was keyed to revenue and profitability, so we thought well. We've got them pretty well boxed in a lot of perform or not perform but there's no way to game the system and it looks like they were not going to make the earn out, and so with about a month to go. They cut a sweetheart deal with. With a buddy to for one dollar by that buddies, fire protection business totally orthogonal to it, but that guy's business brought in just enough revenue to clear the hurdle on the out, and so wound up litigating that. Yes, you technically met the requirements, but nowhere could go off the reservation, and by a you know a hamburger stand to to meet the out. That's crazy. In other than just you know blatant misrepresentation that you know were discovered into diligence that in the end you know the deal never happened possibly some stuff on earn outs, you know not not same type of thing as Kevin mentioned, but just some real shenanigans around Tahrir. It's and cutting deals where contracts were effectively written as pay three years of revenue upfront, but the contract only looked like it was a one year contract with three times valley. But, that's about as crazy as I've seen. It is funny. These are not so you get all this time to come up with your little avenues to tour around it personally a big advocate of you know her now you gotta figure out the value something when you buy it and the same thing for the seller, they effectively many times lose control of the ability to generate the earn out the minute they sell. A guys I to thank you so much for taking your time on this panel. Any little shoutout said he'd called actions. I know we have. A Wax I think. divestitures start the preparation in terms of Pepe Pepe Pat. I've seen too often. You told by this crazy stuff. To the organization through the craziest thing, not being adequately prepared for sale, unnatural doing all the proprietary what is fit like getting a house on the market? Just compare it like that getting a house. Do the network now to do the painting decorating to fix it all up, and then when the time is right, then presented..

Kevin Pepe Pepe Pat
"m. a." Discussed on M&A Science

M&A Science

03:45 min | 1 year ago

"m. a." Discussed on M&A Science

"Deal strategy effect company alignment. I would think of this one. Let me. Turn this around bit. I to me. Deal strategy has got to be an extension of the overall company strategy so I think we discussed this little. Earlier in conversation I think it's essential to understand when you're developing your deal strategy both your general Aminat- strategy, and then your strategy for specific deal is you know is. Does this meet the overall? Corporate Company. Strategy M A just a tool to achieving that broader. Strategy it's ultimately you know critical to achieve any the deal success because you're deal can and and will be judged and should be judged in the context of your company's strategic. Objectives and goals and so to answer your question, maybe if you're her deal, strategies well aligned with your corporate strategy, then alignment between your deal strategy, and the other aspects of Your Business and the groups within your company should be. It should take care of itself. And on the flip side of your strategy. Is mismatched with your corporate strategy. They're going to be challenges in getting that deal done, and maybe in a generic sense that particular deal shouldn't get done. So there should be alignment just in general between the company's overall strategy with the specific deal strategy to make sure we get the best outcome. Yeah I. think that's the starting point I think that's the starting point. When you're developing the strategy, it's got to be extremely well. It's got to be alive, not extremely like it. Just period has to be aligned with the overall corporate strategy. Russ I'm probably going to skip like some of the integration stuff because we're like got plenty of continuity. Just WanNa. Make sure you got. You got whatever you want to the. This a whole nother interview talking lining. Corp Integration and we talked about some that we I I I. Try to you as you've probably noticed. Integration to me is is I. think it comes from You might recall from our prior discussion I I lead the integration function at sap for a couple of years, and that experience was invaluable to me so now these integration aspects or kind of injected. Throughout the deal process for me, and and you know throughout the like the due diligence process for example like. Learning in planning is happening. Those stages and I didn't do as well a job at that before i. You know had some. Direct involvement and immigration, but I I you know I saw the light and I think it's incredibly important so I tried to weave that in a lot of what we talking about in the. You know maybe the core when you think of as Koru. Function well and that's why I think. This interview complements the one. I recently did with Menje. WHO's access go guy. That stood up integration sort of function at as islands. So that, and that's why I'm curious, even putting you together on on some kind of just like a small little sort of fireside or panel type of discussion to talk about that so that we got both US coming at it. You obviously had immigration experience, too, but you know that's kind of his more sort. Told background to enter well. Let Up, let me ask you this. What's The craziest thing? You've seen an ma well. In twenty years of doing banana come across a lot of things that I would consider be pretty crazy, and and those include discoveries and diligence and crazy requests are arguments that are being made and. Of course of negotiations I might be tricky for me to..

Corporate Company Russ US Menje
"m. a." Discussed on M&A Science

M&A Science

05:54 min | 1 year ago

"m. a." Discussed on M&A Science

"It's a success. Because all the other more detailed. To do items goals objectives in A. In an integration, they all come back to those two areas. If you ask me I, there's a lot of it can creep into an immigration, process and project. I particularly around smaller deals, and there's a lot of details or isolated incidents where things don't go as planned or you discover something post closing that you didn't know before. Maybe something wasn't adequately planned for, and oftentimes people who are very close to these things say oh, this was a disaster. This integration was disaster well I would say that in the end if you're hitting your targets and employees are happy. Then your board members your senior management. Frankly the vast majority of the employees of both companies are going to view that as a successful integration. That's interesting, so really define the bottom line value drivers of the deal and make sure people are happy sort of the determinative success. Like you. Things to. subcategories of well. On objective post merger integration objectives. Might be like intact product roadmap, so you know. Did you successfully integrate the target company's technology with Your Company's technology? But what I'd say is if the answer to that is no. That didn't go well, then you're not gonNa have met your financial financial targets, so it all comes back like there are a lot of other space more specific things you might look to as a measure of success, but ultimately to me. They all come back to those two fraud categories. Are you hitting your financial goals and are the employees happy? One are some of the guiding principles to consider throughout the deal, the most important ones to me and they're wanted I. remind myself of and talk about routinely in in every single deal. I'd say I is stay focused on the big picture so. How does your deal serve the overall corporate strategy? And objectives and what's the primary rationale for acquiring this particular company? This is what you need to keep in mind throughout the entire. Deal process it helps you identify issues in the concerns that are going to have the most material impact. On what you're trying to achieve and deal and and to help you develop the best plan for meeting your postal objectives, and so of as a corollary I I'll say I could say the differ way it helps you prevent wasting time too much time and effort on material points that can be easily addressed later time. I'd so to stay focused on big picture. Another guiding principle relates to deal negotiation so. For me. A good business deal is one we're both sides feel like they got a good distance. Deal right trying to find a middle ground and compromise on issues everywhere you can. Particularly on issues that you know are the highest importance of the high importance to the other side. That's what you should. That's what you should strive to do. I mean they're going to be some issues. Some positions you have to take their just deal killers for you and your organization and you have to say no, but you know those will be a small subset of the issues that come up the. Most of the time, the people on the other side of the table from you and They're going to be on your team when the deals completed. Right the founders. In ansan space. We're dealing a lot Founder lead target companies, and and so many times your first impression of what is going to be their new company and their new colleagues or setting the deal process, which includes the negotiations, and if they don't feel like they've been treated fairly.

fraud Founder
"m. a." Discussed on M&A Science

M&A Science

05:28 min | 1 year ago

"m. a." Discussed on M&A Science

"External, establishing your extended transaction team for GonNa, be dedicated to Ama function outside of corporate development, and then establishing your your your processes processing your templates, actually do the work. Okay this is good stuff so when we look at internal people and I like the view of rope it in the business leaders, because obviously they're gonNA have a view in terms of where the gaps are in the business and opportunities and so forth. What's that conversation like? Break Down for me in terms of how you would approach him and be outlined that conversation to frame it in the right way and get them thinking about sort of what you're trying to get out of them. Yeah, I mean it starts with you, know I I go in with the attitude of you know this is about you. It's not a it's not about me, and then that's that is the right attitude. How can I help? But she help you achieve your business goals through. Amadeu transactions or other strategic transactions. This would apply to you know partnerships or making investments. Strategic investments in in in partners as well performance tighter bond with those companies. and. It's really about getting into a dialogue of what their priorities are. What what their history has been in either meeting. Those priorities are where you know they. They've fallen short under getting an understanding of you know the reasons for for both the successes, and the and the you know areas where they've fallen short, and then explaining to them, you know how I can help given given all given that as the backdrop you know given their perspective as the backdrop. Explaining to them how I can help them as as a corporate development leader, and and you know through through strategic transactions into as a tool to help them meet their objectives. Are you. Stay in touch with the top of mind. Yeah a lot of its informal, and that's why you talk about building the network. Some of it is just you know striking up personal relationships with these with these folks, so it's a charge..

corporate development
"m. a." Discussed on M&A Science

M&A Science

04:00 min | 1 year ago

"m. a." Discussed on M&A Science

"Of Empathy and caring for others and And really giving back, has just helped. Catapult our our culture forward like it's been amazing, so the the influence leadership has is amazing. I think working within your scope like myself. Integration lead I feel it's my responsibility to drive that kind of change. That kind of mindset in the ways that I mentioned earlier, you know pushing people setting them up for success when they make a change and you know elevating people and giving them. Kudos when they're really putting themselves out there I mean I I've had people challenge me right like? Kimberly. We we really need to be thinking about this. We really need to be paying attention to that and and I hear them and. If it makes sense, I will change my direction and I think people really respect that. So you just have to. Be Real. Willing to to make changes yourself to you know. I agree I. Think you're right. It's sort of looking at yourself as much as you're looking at the You're looking to make and willing to have those conversations around it. What's the advice? You would give around? Avoiding the whole performance dip post integration since that tends to be a very common thing. Yeah, I mean it's common. It's it can't be avoided. Happens it. It just needs to be mitigated like you would with any risks. You want to try to shorten the time and duration about dip. We plan care free like I said earlier. We have really consistent touch points with the acquired. Through the anticipated dip I mean usually have kind of a timeframe. You know that's. Going to happen, and of course you have to pay attention. Because sometimes organizational changes might might make it worse or better. You know there's there's things that happen outside of the control of. Of, even the management team that that in that brings in the acquired company, so has to keep an eye on on how broader organizational changes might impact them directly I had an acquisition that we really. We are really excited about the value that they're delivering. Over Webex but some of the capabilities that they were meant to deliver were were delayed in. It's because of Cohen. Right we had to like. Prioritize other things, and and so keeping keeping the team engaged through that time premiums really important Mike I, said we track for three years, and on larger transactions, even longer after five years. So as integration lead personally I. I make sure to to try and stay in touch, and if there's anything we can do. to help from the broader Cisco Environment, we bring those those things to bear. This is a hard thing right because if you're especially CISCO, you tend to acquire growth companies. And the balance growth it business boggling organization where you have another company that's wants you to consolidate your salesforce, instance or er pieces accounting payroll all China Balance Continue, growth this mission impossible so I I am. One. I'm curious is like what? What is the key things? That really caused that performance VIP. Role that's that's an interesting point you make. oftentimes with technology investments we need to bring in. We bring in A..

Mike I CISCO Webex Kimberly Cohen
"m. a." Discussed on M&A Science

M&A Science

03:42 min | 1 year ago

"m. a." Discussed on M&A Science

"So? Interesting topic that's come up. Couple interviews is really getting alignment around your team members during integration and making sure they're focused. Can you give you some examples of what goes wrong when you don't have people focused on integration? Yeah, absolutely. Basically all your worst fears realized. Is that a good example? I mean people that are coming in. If. They are not properly handled and helped. And provided the right environment they're not. They're not productive. They'll struggle especially in a big company like ours. It's very easy to get lost. If. They don't have the ability to adapt in finding their way on their own. They don't feel like they're contributing value. which going back to what I said before. That's that's what they. That's what really matters to them. They came from a place for their contributions mattered. They saw direct results of their actions. One of the challenges coming into a big company like SYSCO you're coming from a small company. Is it's? It's just so large and complex, and and there's a whole. Set of acronyms that people use that are different than anywhere else. In the industry so If you don't keep them engaged within months, the highly skilled individuals will move onto other jobs in other companies. Leaders will exit and take their best with them, and so then what you have from an integration standpoint is. As a buyer you take on all the added complexity of the acquired operations without the benefit of the value delivery, which is inherently delivered by the people. BIG VALUE FOCUS around keeping everybody engaged absolutely. What's the trick to doing that? The trick..

SYSCO
"m. a." Discussed on M&A Science

M&A Science

03:55 min | 1 year ago

"m. a." Discussed on M&A Science

"This podcast on stories strategies, or what actually happens on ideals in this podcast with shaking the foam at a bit instead of K Song Patel token to emanate professionals about their experience, its case on himself and his thoughts and ideas that we're talking about today. Let me introduce keystone, but before I do so anybody's game changing ideas, but. Let's get a bit of context I. The world. Manet as a corporate discipline for the white businesses of Bolton salt has been around for several decades read. Hundreds of books being written on the topic, the subject is why talking business goals aren't around the world. It has become a career path for many aspiring executives, and it is easy to know why over the last two decades it'd be nearly a million deals. They made with a none value of over fifty seven trillion dollars. Now, that just says one thing. Emanate is big. It is also important. Emanate provides the means by which organizations grow and prosper now case on has done something that I think is quite interesting for anybody involved in the business of He's written a book. The book is called Agile Emanate proven techniques to close deals faster and maximize value so we'll come case on. Hey thanks for having me toby. That's good. Keystone What you've done is by interesting, somewhat provocative. There's a lot of merit to bring the two worlds emanate business agility together, but like twice some challenging questions really get into perhaps what really drives your thoughts and ideas on why people working on emanate deals need to stop intech nitis. He's on just in one or two sentences explained to the listeners. What exactly is Agile Eboni? Agile lemonade is a project management framework that emphasizes responsiveness, collaboration and continuous improvement. I kept and what made you? What made you want to write the book? What what sort of like drove you? It started probably around three years ago. Toby where I would work with companies whether investment banks, corporate development teams and saw that there was no standardization. Everybody had their own approach to May. And I had these ideas. Learning different project management techniques from our own internal software team that I thought would be very much affable Tammany, particularly the way they used their different agile methodologies. And I started blogging about it initially, and really got strong validation when I interviewed companies like Google Alaska. And really understood that they were actually applying these same agile techniques in their emanate process, stemming from their engineering culture with great success, which really prompted me to push forward and create a framework and drive that into this book, so that it could be shared and distributed with. Teams that could benefit by evolving their process in managing emmy. Okay that sounds good look Sunni interest thing in look at Sydney read the book for being to end, and it's very good rate, so yeah, but. Obviously, having written a book very good. What do you have achieved from this book? The goal is to really be able to evolve them in a process so that we can deliver better. Results enable more of a collaborative people-focused process to deliver better outcomes I think we both know there's a lot of sad stories out there of companies that star Manet with the grand vision, but by the time day one hits. It's becomes total chaos and They're missing out on those initially predicted value drivers and ends up in a sad story. Okay look talking about chaos until cast come show up. Quite a few people listen to this Nelson will hang on a set week. We do things pretty okay Louise running deals for. Quite some time..

Manet keystone toby Tammany K Song Patel Bolton Google Alaska Sydney Louise Nelson corporate development