Small extract of a 1.15 min presentation of 20 years professional experience in an with Merger & Acquisitions. By Juergen Lauber see also www.05112103.info

1. Subtitle:
Business Life as Global Adventure Park
Subtitle:
Capitalism at work hour

2. Attention
This is ony a selection of slides
from the 75 min presentation and
15 min discussion.
20 key slides have beed deleted in
this version
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3. The M&A „food chain“ of my
professional life (last 25 years)
Was only Buyer
Was target and buyer
Was only target
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4. Did I look for an M&A Career ?
Not at all !
But .... !
When it happens, make the best of it !
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5. How does M&A work ? What is the process ?
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6. The M&A development of a the company
„Saia“ after World War II
5 years
Owner
Williams
Holding
Ltd
2 years
1 Year
Burgess Ltd
MBO
1998 IPO
Zürich Stock
Exchange
UK
Sodeco-Saia
1950
1978
1990
2003
2006
2010
Société Anonyme des
Interrupteurs Automatiques
6
M&A
Giacomini 5.9.2011
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7. Headquarters and electromechanical products:
Micro Switches + Stepper Motors
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8. The Saia-Burgess Group Management 2003
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9. The M&A history of Saia-Burgess as Buyer
During 8 Year
as public
company
1950
1978
1990
2003
2006
2010
Société Anonyme des
Interrupteurs Automatiques
9
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Giacomini 5.9.2011
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10. The Man behind the M&A history of Saia-Burgess Group
Strategic Head
ex. ABB
Manager
President
Of the Board
(Absolute King)
MD / CEO
Andreas O.
Started
1981 as Marketing
Assistant
Their main deals !
-Bär Electrowerke
- Stegmann Motors
- TH Contact
1998 Sales growth
- Cetronics
IPO
- MICS
at 238
- Ledex Dormeyer
Mio CHF
- CEI Motors
pa
- Bühler Motors
- > failed Niles Japan 600 Mio
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CEO
2003
2006
630 Mio
CHF Sales
2010
10

11. The dramatic end of the public „ Saia-Burgess Group
Strategic Head
ex. ABB
Manager
President
Of the Board
(Absolute King)
MD / CEO
Sold in October
2005 for 695 Mio CHF.
Six month earlier the share price
value of the company was
only 400 Mio CHF
Andreas Ocskay
CEO
2003
2006
at 630 Mio
CHF Sales
1998
IPO
238
Mio
CHF
2010
Sales growth
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12. What happened to „My business“ ?
Electronic Control Components & Systems
August1999 joined Saia- Burgess as
Director of Business Development
1950
Société Anonyme des
Interrupteurs Automatiques
M&A
1978
1990
2003
2006
2010
MBO Offer for
26 Mio CHF rejected
12

13. What happen Saia-Burgess „Electronic Controller / PLC
business“ ?
No acquistion, only focus own business
Start condition 1997: 35 Mio CHF
No own factory; only shared services
Final condition 2012:
Saia-Burgess Controls 80 Mio CHF
1 new Lean Factory
Why and how did Honeywell buy the 80 Mio CHF company
Saia-Burgess Controls AG for 123 Mio CHF ?
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14. My first hand experience with it 1995 -1997
1995 – Acquired by an US based big company – Parker Hannifin ( 4 Mrd.$)
Right after acquistion they sent me to 4 day intensive training on
„Finance for non-finance managers“
=> How to handle the attitude „The only fixed cost for the company is the profit“
230 persons – 35 Mio $
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15. How well are the US CEOs doing their job ?
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16. What is the magic behind the super performance of US based
big companies ?
In M&A US companies have huge competetive advantages ?
- European stupidity in taxation !
They pay no tax for their profits in Europe !
- Creative and very liberal accounting ?
- Radical and without scruple in relocation into low cost countries !
-
M&A is Priority 1 methology to develop business ;
Inovation is nice to have !
M&A is like drug
addiction
Once you start ,
difficult to stop
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17. Take this picture home with you !!!
In business great numbers/performances sometimes are not what they appear,
There is no magic secret and no super power ; only money
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18. Central Point to share files and opinions:
www.05112013.info
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19. Give me feedback !
www.05112013.info
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20. I will make the feedback public !
See example from my latest München University event
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21. DISCUSSIONS
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22. Who can answer these question ?
1) Why are M&A projects never known as failures ?
2) Who pays the price ? Who suffers ?
3) What should you do when you become important in a M&A deal ?
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