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Merger/Acquisitions
AKLabs' Perspective
Traditionally, Mergers and Acquisitions (M&As) have been handled by a team of financial advisors and legal advisors working with the hard metrics of a deal. These kinds of metrics, however, show the consequences of specific behaviors and therefore are not always effective measures of future success. Soft metrics around Market Intelligence, Brand, Operations, and Talent (such as corporate culture) are equally important and must also be included and analyzed to effectively predict future success.
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A study of 190 CEOs, CFOs, and other top executives experienced in global acquisitions (Watson Wyatt Worldwide, 1998a) found that cultural incompatibility is consistently rated as the greatest barrier to successful integration but that research on cultural factors is the kind least likely to be conducted as an aspect of due diligence.
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In a 1997 Mercer Management Consulting study (Lublin and O'Brien, 1997), poor postdeal integration was the major failure responsible for the fact that, in deals worth more than $500 million, only 43 percent of some three hundred merged companies outperformed their peers in total returns for shareholders.
Unfortunately these metrics are often neglected and as such it comes as no surprise to us that although improving, the numbers for M&A success continue to show that many still fail meet their targets.
While there are many legal and financial advisors to assist a company with its merger or acquisition, there are very few Corporate Culture Advisors available for guidance through this complicated process. While HR advisors may step up to the role, they ultimately lack the tools, scope of vision, and change management skills necessary to bring all aspects of a merger or acquisition together.
This is where AKLabs can help. Our unique and comprehensive Three Phase M&A Process works with your company every step of the way to ensure a successful M&A outcome. We employ leading edge tools and strategies which save significant time and money in the integration phase and are designed to work with (not against) any advice from other advisors you may be using throughout the process (HR, PR, legal, financial, etc.). The result is a new company which is not only culturally aligned, but functioning at an optimum level - ready to dominate its marketplace.
Speed. What normally takes years using traditional methods takes only months using our approach, saving you considerable time, money, and stress in your M&A deal.
Effectiveness. Our process is fully customized. Specific nuances of your people, company, or industry do not go unnoticed and are integrated into the process we implement for you and no two deals we work on are ever treated exactly the same. Furthermore, the benefits of our process extend far beyond the merger or acquisition you're dealing with. Certain aspects of our process (such as our 171 point KPI checklist) remain in place to ensure your company continues to operate at its highest level of performance long after the deal is done.
Price. Through cost savings afforded by our unique and revolutionary business model, our clients have experienced real cost savings of up to 70% over competitors for an equal, even greater, level of expertise provided through your own on-site, full-time Chief Growth Officer for Hire (CGO4Hire) who is with you through every step of the process.
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