Michael De Bonis HBA, CHRE, CTI certified.’s Post

Turning Fear into Fortune 💰 💰 💰 A Strategic Leap in Business Acquisitions As business leaders, the prospect of acquiring another company can often seem daunting. The fear of the unknown, the integration of new teams, and the financial investment required can be overwhelming. However, it's essential to shift our focus from the fear to the remarkable opportunities that lie ahead. 🚀 Doubling or Tripling Your Business Overnight: Imagine waking up to a business that's not just grown incrementally but has expanded two or threefold. That's the power of a strategic acquisition. You're not just buying a company; you're acquiring new markets, diversified products, and a wealth of expertise. 💡Innovation Through Integration: The integration of another company brings with it fresh ideas and innovative processes that can revitalize your business approach. It's an opportunity to blend the best of both worlds and create a powerhouse of innovation. 🤝 Building a Stronger Brand: With an acquisition comes the chance to enhance your brand's presence. You're not only maintaining your existing customer base but also tapping into the acquired company's loyal followers, creating a stronger, unified brand. 💼 The Bottom Line: Yes, acquisitions come with risks, but they also offer a fast track to growth that organic development can't match. By conducting thorough due diligence and having a solid integration plan, the benefits can far outweigh the fears. Let's embrace the challenge and see it as an opportunity to leap forward. Because in the world of business, who dares wins! #BusinessGrowth #AcquisitionOpportunity #StrategicExpansion #FearlessLeadership

“Oh, wait a minute, I also have to grow.” When we say these things intellectually, it’s hard to absorb what it feels like when you’re somebody who has to actually navigate all of these things all at once. ... the two strategies that stand out the most. One is, how are you going about building a culture of growth, a mindset of growth, and a culture of innovation?" (ref: McKinsey) At Breakpoint Human Capital Management we are proud to be a trusted strategic partner to CEO's and their executive team building high performing organizations fueling competitive advantage across diverse industries, global operations and a full range of organization challenges, including start-ups, turnarounds, high growth, mergers and acquisitions or exit strategies. Wouldn’t you like to partner with someone who has been in your shoes? Please let us know how we can best help at michael@breakpointhcm.com And if you’d prefer, you’re always welcome to call 416.209.8776 Breakpoint Human Capital Management For the people™ #change #people #nosurprises #strategy #growth #humancapital #leadership #entrepreneurship #culture #businesswithpurpose #forthepeople

Throughout my career, I've been involved in many acquisitions and have always been fascinated by why so many lose momentum after the deal closes. The synergies the buyer expected often fail to materialize. This leads me to ask myself a recurring question: how can we best leverage the ambition of the founders and acquired company leaders to drive the acquisition's long-term success? Long-term incentives are crucial for retaining acquired leaders and keeping them motivated and agile. While financial rewards are important, they're not the only piece of the puzzle. It's equally important to signal trust, continued ownership, and alignment with the acquiring company's goals. In today's business world, people are a company's most valuable asset, bringing vital relationships and knowledge. Founders and leaders play a critical role in bridging the cultural gap between companies, ensuring a smooth transition for everyone involved. A motivated leadership team inspires confidence within the acquired company, ultimately reducing post-acquisition anxiety. In my current role, I talk to many founders grappling with the question of when is the right time for them to exit. I see different motivations for wanting to sell. Some founders are ready to retire or leave the industry entirely.  Some are burned out by a rough commercial environment and tiresome financial struggles.  Others feel stuck, having hit a glass ceiling and struggling to grow their business on their own.  Still, others see the potential to achieve more and focus on their strengths by becoming part of a larger organization. I explain the difference between two acquisition models. A traditional model offers a quicker, but smaller payout upfront. This model prioritizes immediate payout for the founder and often makes them obsolete soon after. Conversely, an acquisition with a longer-term incentive structure and a well-thought through plana, allows for both professional and financial growth over time. This approach can help founders reach new heights in both areas. It also allows them to stay relevant in the new organization and retain a reasonable amount of autonomy. #mergersandacquisitions #leadership #talentretention

Only when companies understand what people are looking for from a job and develop a strategy to meet those needs within the broader operational goals of the organization will they achieve the results possible. More than any other time people want to make a difference. They want to know that they can make mistakes, learn, and still have a chance to develop their skills for long-term career growth. It is increasingly important for organizations to shift mindsets and behaviors to attract and retain people. At Breakpoint Human Capital Management we are a trusted strategic partner to CEO's and their executive team building high performing organizations across diverse industries, global operations and a full range of organization challenges, including start-ups, turnarounds, high growth, mergers and acquisitions or exit strategies. Wouldn’t you like to partner with someone who has been in your shoes? Please let us know how we can best help at michael@breakpointhcm.com And if you’d prefer, you’re always welcome to call 416.209.8776 Breakpoint Human Capital Management For the people™ #change #people #nosurprises #strategy #growth #humancapital #leadership #entrepreneurship #culture #businesswithpurpose #forthepeople

Your Monday Memo “Do not focus on numbers. Focus on doing what you do best. It’s about building a community who want to visit your site every day because you create value and offer expertise.”  — Cassey Ho At Breakpoint Human Capital Management we are a trusted strategic partner to CEO's of high growth organizations and large scale enterprises building high performing organizations across diverse industries, global operations and a full range of organization challenges, including start-ups, turnarounds, high growth, mergers and acquisitions or exit strategies. Here's a few of our accomplishments, 4 Turnarounds 5 Start-ups 5 Acquisitions 8 Countries 9 Greenfields 16 Industry Leaders $26.1 million in first year savings $1.8 billion of revenue growth Wouldn’t you like to partner with someone who has been in your shoes? Please let us know how we can best help at michael@breakpointhcm.com And if you’d prefer, you’re always welcome to call 416.209.8776 Breakpoint Human Capital Management For the people™ #change #people #nosurprises #strategy #growth #humancapital #leadership #entrepreneurship #culture #businesswithpurpose #forthepeople

While there a are few great insights in this short article, one that caught my attention was a statement that after rounds of restructuring many employees are "so worried about getting fired that they have become risk averse. “Firms need agitators to grow organically, .... The fact that they are buying growth is a red flag that they can’t develop it internally.” " Has internally driven innovation dried up, or is there still room to transform and grow organically? #businesstransformation #innovation

It's #MergersandAcquisitions Monday, today we're talking about a key problem often experienced by PE firms and their portfolio companies: "𝗖𝗘𝗢 𝗗𝗼𝗺𝗶𝗻𝗮𝗻𝗰𝗲" Exactly what is CEO Dominance and how does it negatively impact a business as it readies for sale, and even after the deal is finalized? Very often, founder-owned businesses are successful in great part because of the personality and influence of the founder. This founder, even after years of growth and success, continues to be deeply entrenched in the day to day operations in a company. The entire culture of the company revolves around this charismatic CEO. While this was the original secret sauce for the company's success, as the company readies for sale it is now a core problem. Private equity firms and other business buyers are faced with 𝗖𝗘𝗢 𝗗𝗼𝗺𝗶𝗻𝗮𝘁𝗶𝗼𝗻 𝗦𝘆𝗻𝗱𝗿𝗼𝗺𝗲 in their potential deals. Growth and change are inhibited because employees are so accustomed to depending on the highly influential founder/CEO. A common scenario in companies with all-powerful founder/CEOs is the non-existent succession plan. The impact is a newly acquired company pressured to hurry up and build a succession leadership team post acquisition. (A Harvard Business Review article pointed out that 70% of business owners feel that succession planning is important, only 45% feel they are adequately prepared) It's why we often hear of stories of PE firms "ripping and replacing" entire leadership teams after the deal is closed. A fresh solution would be to 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝘁𝗵𝗲 𝗲𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲 𝗼𝗳 𝘁𝗼𝗽 #𝗳𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝗱𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗱𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗽𝗵𝗮𝘀𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗱𝗲𝗮𝗹, particularly those with specialized industry expertise and M&A/PE experience. Fractional executives in 6 key value-driver roles - finance, sales, marketing, operations, technology, human capital -could help companies speed readiness for sale and build succession teams cost effectively. The big benefit: Reduce risks of post-acquisition failure for both buyer and seller. #privatequity #successionplanning #VistageLosAngeles

Acquisitions are tricky under even the best circumstances, but they are doomed to fail when you have an insecure leader. I’ve seen a co-founder drive away a key executive from an acquired company simply to preserve ego and retain power (though it may have been done subconsciously). Before the acquisition, the key executive was identified as one of a handful of people who must be retained to make the acquisition viable—the deal would not be allowed to go through without them. The key executive agreed to stay so the deal was done. The key executive and the co-founder held the same roles at their respective companies. However, the key executive had much more experience. The role conflict was obvious and would need to be resolved. Instead of resolving the conflict, the CEO let the less-experienced co-founder define the new role for the more-experienced key executive. In hindsight, this was a huge mistake. The co-founder felt threatened by the key executive, so he created a diminished role for him. Within weeks, the key executive resigned. He left behind close friends he had worked with for years. He walked away from incentive compensation and earn-outs. This should have been a strong clue that something was wrong. There was more than enough room for both leaders. The two companies served distinct markets with distinct business models. There was no need to force the two teams together so quickly. There was planned synergy between the companies, but they didn’t need to be combined so aggressively and so quickly. With the key executive gone, the remaining team never recovered. The co-founder consolidated power and pursued his own agenda. He exhausted resources raised for the acquired company. Later, the CEO said that his lesson learned from the acquisition was to “never buy a company where the code bases aren’t compatible and your team doesn’t know the programming language.” That’s probably great advice if you let your co-founder drive away the executive who knows the other language and built that respective team. What lesson did the rest of us learn? Never underestimate the self-serving motivations of an insecure leader. Before you merge two companies, create a viable path for each of the leaders you need to retain. Never assume one leader will create a fitting role for another when their paths are in direct conflict. #leadership #MergersAndAcquisitions

Not every #merger or #acquisition calls for large-scale #transformation. But many deals represent catalysts for substantial #change, as well as opportunities to create more #value. Leaders need to take the time up front (balancing day one urgencies associated with M&A with longer-term #strategy) to consider the transformation opportunities inherent in a deal. It will mean reimagining the combined business, assessing the long-term full potential value of the deal, building an execution engine, and developing the talent and capabilities needed to sustain change. It will require viewing traditional integration tasks through a transformation lens and taking a bold and strategic approach to change. The effort can pay off: when leaders approach M&A with transformation in mind, organizations can achieve more value, faster, with less risk, and do so sustainably. #mergersandacquisitions #integration #talent #risk #opportunity https://lnkd.in/gdmuqzJs

❌ 70% and 90% of M&A fail to deliver on their investment plan ❌ 60% of transactions destroy, rather than create, shareholder value The need to mitigate the risks of post-deal performance reduction, cultural disruption, and potential business fails in major mergers and acquisitions has never been clearer. As highlighted by McKinsey & Company, a comprehensive human capital strategy can help avoid these pitfalls, which should ideally be outlined prior to any M&A deal. This strategy should assess culture differences, interrogate and align management styles and motivations, and provide plans for employee engagement and leadership succession. 🔗 Read the full article here: https://lnkd.in/ecvzbG-4 Assessing the various leadership teams’ capabilities and dynamics is critical, and this can be comprehensively achieved thanks to PACE - our unique behavioural evaluation tool. PACE offers extensive data specific to behaviours relevant for leaders in the private equity environment. Our insights empower leaders to assist them in achieving their business's value creation goals, and help drive post-deal business growth.   Take PACE now >> https://lnkd.in/e4p3cigx The LCap Group: Drax Executive, Rowan, Leadership Dynamics and PACE #analytics #privateequity #executivesearch #behaviour #leadership