while acquisitions are complex and challenging, acquiring multiple companies at a time is even more challenging. this presentation gives advice from the viewpoint of a serial acquirer.

1. MANAGING MULTIPLE
MERGERS AT A TIME -
INGREDIENTS FOR SUCCESS
DR. KARL POPP

2. ©Dr.KarlPopp2014
M&A leads are
• PROFESSIONAL,
• RELAXED,
• SUCCESSFUL.
Doesn´t resonate with you?
Let´s see what we can do about it…

3. ©Dr.KarlPopp2014
Rule 1: Look in the mirror – not the
rear view mirror
• What?
– Analyze and adapt your capability maturity to
integrate successfully
• Why?
– Buyer company and manager abilities to
integrate are mission critical
• How do we manage it?
– Select integration managers carefully
– Secure enough capacity for integration work

4. ©Dr.KarlPopp2014
Capability maturity problems
M&A
experience
Dedicated
M&A
resources
People
in corporate functions
to care for acquisition
integration
M&A experience gap}
Resource
gaps

5. ©Dr.KarlPopp2014
Rule 2: Shake and bake approach for
acquisitions
• What?
– Structure and tailor the integration approach in
due diligence
• Why?
– It is hard to drive a car while you are building it
• How do we manage it?
– Make use of predefined work catalogues,
integration and management approaches, but
tailor them to the specific case

6. ©Dr.KarlPopp2014
Rule 3: Minimize process risk
• What?
– A structured due diligence and integration
process is mission critical
• Why?
– You don´t have time to discuss process
during integration
• How do we manage it?
– Define processes based on work catalogues

7. ©Dr.KarlPopp2014
Rule 4: Let others go through hell for
you
• What?
– WYSIATI what you see is all there is
– you don´t foresee what you don´t know
• Why?
– Avoid disaster
• How do we manage it?
– Read the book
„Deals from hell“
by Robert F. Bruner

8. ©Dr.KarlPopp2014
Rule 5: Appreciate the work. Don´t
underestimate it.
• What?
– Complexity and effort of merger integrations
are often ignored or guessed to be too low
• Why?
– Complexity models are not used
• How do we manage it?
– Leverage complexity models, see next slide

9. ©Dr.KarlPopp2014
1
2
3
4
5
6
7
8
9
10
11
12
Revenue Buyer
Revenue Target
Buyer
Employees
Target
Employees
Operating
countries
Locations
Companies
Value Chain
Coverage
Profit
increase
Workforce
reduction
Reduc-
tion
of sites
Cultural
changes
Source: Prof. Lucks, Siemens
Complexity and Effort of integrations
Structural
complexity

10. ©Dr.KarlPopp2014
Rule 6: Fail early in due diligence
• What?
– There is nothing worse than a bad deal.
• Why?
– Dramatic cost of fixing things late in the process
– Failure is no fun
• How do we manage it?
– Let failure in due diligence be a viable
option
– Drive for failure in DD, then for success

11. ©Dr.KarlPopp2014
Rule 7: Maximize the likelihood for
success
• What?
– Define and plan for success
• Why?
– Reasons and prerequisites as well as the way to
success is mission critical
• How do we manage it?
– Name and monitor success factors
– Let everybody know the way to success

12. ©Dr.KarlPopp2014
Rule 8: Make your day. Blueprint!
• What?
– On day one you need to execute the
integration plan.
• Why?
– Flawless execution is key.
• How do we manage it?
– Define a detailed integration plan, together
with the target. Before closing!

13. ©Dr.KarlPopp2014
Results: Ingredients for success
• Analyze and adapt your capability maturity to
integrate successfully
• Structure and tailor integration approach and
M&A process
• Avoid deals from hell
• Manage complexity and effort
• Drive for failure, then for
success in due diligence
• Blueprint
http://www.mergerduediligence.com

14. Please find more information here:
http://www.mergerduediligence.com
http://www.drkarlpopp.com