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An underrated trick to a successful roll-up... AOL-Time Warner Boeing-McDonald Douglas Hewlett Packard-Compaq Amazon-Whole Foods All these mergers failed due to culture clashes. If you're not considering CULTURE as one of your #1 due diligence criteria in a roll-up, don't say I didn't warn you... It's one of the biggest causes of M&A failure. Period. Here's why you should care about this... One of the biggest decisions you'll make during your roll-up is if you're going to try to create a common culture across all your units OR let them run separately. For example... Buffett runs almost everything separately. Brad Jacobs runs everything as one culture. Few do both and outperform. And that's important because... The more unsophisticated and unhealthy the culture of the companies you're going after, the more likely it is you'll have to completely revamp the culture. Are you prepared for that? You'll double your net worth if you are. -- I'm Matt Duckworth and I help successful manufacturing CEOs roll-up their industry with less risk. Book some time with me here to learn how I help people like you crush it: https://lnkd.in/gaXK4x9f

I was fortunate enough to spend last week in the beautiful Colorado Springs with Rob Quell, Ethan Bean, Pat McCullough, and Martie Summerford along with hundreds of the industry's leading brokers and consultants at The Council of Insurance Agents & Brokers' annual Employee Benefits Leadership Forum.   Here are my top three takeaways:    Aggregators: The mergers and acquisitions (M&A) landscape is evolving and we're seeing a shift towards more strategic and specialized acquisitions. The primary driver? Rising cost of capital.    Integrators: Firms are focusing on consistency and centralization following rapid M&A expansion over the past few years - think internal general agencies, centers of excellence, and regional realignments. It’s all about creating a unified standard.    Both aggregators and integrators: There is a significant focus on organic growth, primarily by adding lines of business, cross-selling product lines, and increasing depth to drive higher revenue and better client retention. The belief is that doing so will lead to the best client experience possible.    Staying ahead of trends in our dynamic healthcare market and continuing to build valuable relationships are crucial for ongoing success. Grateful for the opportunity to do so!

M&As offer a unique opportunity for business growth, but they also pose significant challenges that can make or break the success of the operation. Reflecting on the high-profile mergers, such as the one between American Airlines and US Airways back in 2013, can offer crucial lessons about strategic decision-making in M&A for SMEs considering M&A as a growth strategy. What are these lessons? 🤔 ✅ Understand the Nature of the Merger: Is it a merger of equals or a takeover? This fundamental question affects everything from corporate culture integration to strategic operational decisions. For SMEs, recognizing the nature of the deal sets the right expectations and strategies from the outset. ✅ Leadership Decisions Matter: Deciding who stays in the C-suite influences the merger's direction. It's about balancing continuity with new blood. SMEs must carefully consider which leaders can drive the future vision while respecting the legacy and strengths of both entities. ✅ Cultural Integration: This was a pivotal challenge in the American Airlines and US Airways merger due to their differing operational philosophies and corporate cultures. For SMEs, the lesson is clear: diligently plan and execute cultural integration to avoid operational disruptions and to harmonize differing business practices. ✅ Maintain Operational Excellence: During a merger, it's crucial to sustain business operations at peak performance. This "fixing the plane while it’s in flight" approach, as in the case of American Airlines and US Airways, is vital for SMEs to ensure service continuity and customer satisfaction during transition periods. ✅ Strategic Patience: There is great value in patience and strategic pacing. Rushing can lead to oversight and errors, particularly in areas like IT and system integrations, which are often fraught with complexity. M&A is not just for the large players; they are a viable strategy for growth among SMEs. However, they require careful planning, strategic foresight, and a deep understanding of both entities' operational and cultural landscapes. 🔗 Discover more M&A resources by visiting https://lnkd.in/dnS-rUbf. #MergersAndAcquisitions #BusinessStrategy #SMEs #Leadership #CulturalIntegration #OperationalExcellence #HKHConsulting

It has been barely a month since WPP announced its blockbuster decision to merge BCW Global and Hill & Knowlton, prompting a cascade of coverage, analysis and commentary. Last week I sat down with Burson CEO Corey duBrowa and chairman AnnaMaria DeSalva for a lengthy interview that addressed some of the key decisions and context. The full interview is at the link below — here are some highlights: ⚖️ There is a very clear effort to position this as a "merger of equals". This makes sense from a messaging perspective, particularly in terms of reassuring H&K staff who may assume otherwise given the size disparity between the two firms. It is also a notably different tactic compared to Cohn & Wolfe's 'reverse takeover' of B-M five years ago. 🦍 The expanded scale of the new entity is put forward as one of the key reasons to merge, particularly in terms of supporting major global brands. However being the biggest PR firm appears to be of far less importance, reiterated on no fewer than three occasions during the interview, alongside the remark that "the industry seems fairly obsessed with size". 🧩 There isn't a lot relevant agency experience available for a merger of this scale. Yet, while both leaders might be relatively new to agency leadership, there are numerous references to the major mergers they have navigated on the corporate side, including some of the biggest deals of the past two decades. "There will be challenge and tension" says DeSalva, reflecting how crucial communication and culture are in these situations. 📏 In terms of how the merger's success will be evaluated, there's no shying away from the gravity of how markets respond. But both leaders are clear that longer-term considerations are more important — duBrowa boils it down to the 'lasting value' of the culture they create, while DeSalva references 'total stakeholder return'. ♛ Unlike BCW, it seems clear that global practice leads will play a major role at Burson, with duBrowa noting that H&K is ahead in this regard. How these roles function alongside geographic leaders will be interesting to watch. 🤩 Consolidations often bring chaos and confusion. It's refreshing to hear duBrowa frame the merger as the 'opportunity of a lifetime' rather than a financial vehicle to maximize shareholder return. There will be plenty of challenges ahead, but the hope — no doubt — is that this kind of enthusiasm proves contagious. PRovoke Media

Do Job Titles Matter in M&A? Absolutely! A few years ago the Director of Events at a start up we'd just acquired was given the new title of 'Event Planner II.' The emotional impact was palpable, with tears reflecting how hurt she was by the title change. This experience reinforced the significance of job titles beyond mere labels. Here are five tips on getting them right, especially during organizational changes like Mergers and Acquisitions: 1. Prioritize Clarity: Ensure roles are clearly defined to avoid confusion and maintain employee confidence. 2. Consider Emotional Impact: Recognize the emotional weight titles carry and handle changes with empathy. 3. Align with Career Paths: Connect titles to career progression, motivating employees and fostering retention. 4. Facilitate Smooth Integration: Use titles strategically for efficient team integration during M&A activities. 5. Verify Legal Compliance: Ensure titles comply with regulations to prevent legal complications. Remember, job titles aren't just words – they shape professional identities. Handle them thoughtfully for a positive impact on your team and organization. #JobTitles #LeadershipInsights #CareerManagement"

The Dance of Synergy in M&A section✨🕺💃 🎶 ..... In the enthralling world of M&A (#merger & #acquisition), two business giants come together in a mesmerizing dance of synergy. This dynamic narrative reimagines the steps to a flourishing union: The #Cost Waltz 🏦💵 Redundant functions gracefully pirouette offstage, making way for streamlined operations that twirl with newfound efficiency. Economies of scale take center stage as procurement, production, distribution, and administration move in perfect harmony. This elegant performance saves resources and fuels further growth. The #revenue Rumba 💰 Complementary products and services join hands, igniting a cross-selling and upselling fiesta. The irresistible beat of their combined offerings unites customer bases, expanding them in a synchronized rhythm. The stage lights brighten, revealing a spectacle of new revenue streams. The #market Mambo 🚀 Geographic boundaries dissolve as cultures intertwine in a vibrant market mambo. New customers and channels sashay into the spotlight, captivated by the combined reach and expertise. Market share spins like a dervish, and global recognition becomes the well-deserved encore. The #operational Tango 📈 Processes and systems gracefully synchronize, melting away redundancies like shadows. Resources dance in perfect step as integration's magic wand streamlines operations, optimizes allocation, and boosts efficiency. The tango ends with a flourish, leaving a stage primed for peak performance. The #strategic Samba 🔭 Capabilities and resources join forces in a dazzling strategic samba. Innovation pirouettes with newfound vigor, differentiation shimmies across the stage, and market positioning takes a triumphant bow. The final flourish leaves the audience enthralled, witnessing the birth of a competitive powerhouse. In this captivating dance of synergy, financial gain is just the beginning. The performers create a harmonious spectacle that transcends mere numbers, leaving a lasting impact on the business world. #adsvaluation #mergersandacquisitions #ethiopia #valuationservices #management #advisory #consultancy

Read the article published on HR Katha which highlights how Happiest Minds has mastered the art of acqui-hiring by prioritising cultural fit, fostering collaboration, and investing in people. In the article, Sachin Khurana, Senior Vice President & Chief People Officer at Happiest Minds, emphasizes the importance of cultural fit in acquisitions: https://shorturl.at/sinna

Companies consider #mergers for various strategic reasons, typically related to #growth, expansion, #diversification, cost savings, or gaining competitive advantages. One of the most successful mergers in recent times was between Disney and Pixar. The #Disney-#Pixar merger, which took place in 2006, brought together two powerhouse #animation studios with different backgrounds, cultures, and ideologies. They had their share of difficulties during the merger integration- differences in culture, #leadership approaches, priorities and creative outlooks existed. Disney came from a strong #corporate #culture, which led to hierarchical systems with top-down decision-making processes and a focus on traditional animation techniques. On the other hand, Pixar was a relatively young and innovative studio known for its cutting-edge technology and storytelling. It fostered a more collaborative and meritocratic environment, where creativity was paramount, and ideas could come from anyone in the organisation.   These differences posed challenges like creative clash, communication issues, leadership transition, and integration concerns.  Disney strategically decided to allow Pixar to operate semi-independently to overcome these differences. This autonomy helped to preserve Pixar's creative culture and allowed it to continue producing successful films. Both companies initiated cultural exchange programs to foster better understanding and collaboration between their employees. Disney ensured that key Pixar executives, including John Lasseter and Ed Catmull, remained with the company to oversee Pixar's operations and maintain its creative vision. Establishing clear communication channels between the two studios helped to address misunderstandings and align goals more effectively. The merger allowed both companies to leverage each other's strengths, such as Disney's marketing and distribution capabilities and Pixar's technological expertise. Over time, these efforts helped bridge the cultural gap between Disney and Pixar, leading to a successful integration that resulted in both studios' continued creative and commercial success. #Postmergerintegration (PMI) is essential for a successful merger. Companies must focus on bringing together employees and aligning their values, norms, and behaviours to create a unified corporate culture. Change Et Al. being a #changemanagement expert helps companies smoothly integrate post-merger. Assist companies with streamlining business processes, integrating systems, leadership transitions, and creating change activists to communicate effectively with stakeholders and bring cultural alignment. If you are looking for #changemanagement experts to help you with your post-merger integration, write to us at niloufer.jamal@changetal.com or visit our website- changetal.com Zarsis, Dolon, Niloufer

𝗜𝗻𝘀𝗶𝗴𝗵𝘁 𝟯𝟵: 𝗗𝗼𝗻’𝘁 𝗨𝗻𝗱𝗲𝗿𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗲 𝗙𝗶𝗿𝘀𝘁 𝗛𝗮𝗻𝗱 𝗘𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 I was listening to an interview with Disney’s CEO, Bob Iger, where he was talking about him having lived through two mergers earlier in his career, directly experiencing the complexities of being acquired and the effects it had on the people, culture, and work. This firsthand knowledge proved instrumental later, when he successfully convinced Steve Jobs of the Pixar acquisition. He could talk credibly not only about the cold hard numbers and mechanisms involved, but also about the human element that was needed to make it successful. Firsthand experience is a priceless asset that can't be overstated. Think about it: when you personally navigate the twists and turns of a particular situation, you gain a level of insight and understanding that simply can't be replicated through textbooks or secondhand accounts. These experiences often don’t look like opportunities at all, many times they might even look like setbacks or demotions, but they all have lessons to teach us. Whether it's in negotiations, decision-making, strategic planning, or future problem solving, the insights gained from personal experiences are invaluable gems that can set you apart. Embrace every opportunity to learn and grow firsthand. After all, the challenges of today might just become the wisdom you need tomorrow. #GrowthMindset #Innovation #Experience

Personally, I believe that the first step in executing an M&A deal lies in fostering a culture of integration within both the organization and its supply chain. As we approach the conclusion of the M&A process, instilling and reinforcing this culture becomes more challenging. Cultural distance emerges as one of the most formidable obstacles. Therefore, the organization must prioritize assessing the workforce retention index before delving into considerations for the merger.