post-merger integrations

post-merger integrations

 

Sean McCoy shares an article that explains why most post-merger integrations fail.

Most mergers and acquisitions fail to achieve their intended synergies and deal rationale, because most post-merger integrations (PMIs) fail. Most post-merger integrations fail because they did not beat The 4 Clocks. There are 4 clocks counting down in PMI, a clock each of the four major stakeholders in a PMI: employees, vendors, owners, and customers. The clocks also largely parallel areas of synergies. The name of the game in PMIs is to complete the integration and achieve the synergies before the clocks hit zero.

The Employee Clock

The Employee Clock measures the opportunity for two key synergies, internal synergies through consolidating excess capacity and external synergies via retaining top performers. Human capital and physical capital are under the microscope of the Employee Clock. Integrations often create excess physical capacity, e.g., plants, locations, and a common source of synergies is consolidation of physical plant.

The human capital element is a race against a brain drain. Top performers from both companies will typically stay on board to see where they fit in the new company. But, they will not stick around forever. The Employee Clock hits zero when top performers decide to move on. Losing top performers is perhaps the most damaging impact to the long-term strength of the integrated company. The high stakes for talent retention are usually why most PMIs begin with determining everyone’s role in the new organization.

The Vendor Clock

The Vendor Clock counts down the opportunity to capture cost efficiencies. A common source of synergies is the consolidation of vendors and systems. The cost of two systems becomes the cost of one system, but beyond that obvious savings, the new company has greater bargaining power with vendors, due to the larger volume of the integrated company. The starting time on the Vendor Clock is usually higher than on the Employee Clock, but vendor and system integrations also take longer, leaving no time to delay.

 

Key points include:

  • Source of funds
  • Revenue synergies
  • Customer churn

 

Red the full article, Post-merger integrations are racing against The 4 Clocks, on McCoy ConsultingGroup.com. 

 

 

Robbie Kellman Baxter takes a look forward at subscription businesses in 2021 and provides a few tips on how to improve sales through improved membership strategies. 

The time leading up to American Thanksgiving is often especially busy, with a combination of major conferences, ambitious sales goals and, of course, planning for the upcoming year before people check out (physically and/or mentally) for the holiday season.

You’ve probably spent some time already thinking about your goals for next year, and what you are committing to your board and stakeholders.

A key ritual of setting the year up for success for many organizations is the Sales Kick Off (SKO).

But this year’s event is likely going to look a little (a lot?) different.

I was inspired by my friend and colleague David Meerman Scott, co-author of Standout Virtual Events to rethink the SKO. David provides some excellent tips for running a quality virtual event, including the right equipment, how to prep a speaker, and how to think about the whole program as part of a whole.

In this article, I look at the SKO from a different angle. I took a step back to really focus on the “Forever Promise” organizations make to their sales teams and which has resulted in the “product” of the SKO event. The Sales Kick Off is a time to educate, engage and inspire the team to maximize the likelihood of hitting all sales objectives in the coming year.

 

Key points include:

  • The modular model
  • Creating ‘lean in’ opportunities
  • Making the most of events

 

Read the full article, Rethinking Your 2021 Sales Kick Off With a Membership Mindset, on LinkedIn. 

 

Umbrex is pleased to welcome Kordt Griepenkerl with Med-Beratung. Kordt  spent five years in the McKinsey healthcare practice in Germany and then worked in leadership positions for the medtech firms Biotronik and Trumpf Medical (now part of Hill-Rom). He covers a wide range of fields from operations to sales and marketing and extensive international experience. He and has been running his own consulting firm  Med-Beratung UG since 2012.

Prior to McKinsey, Kordt obtained this PdD in theoretical physics. He lives in Reutlingen, South of Stuttgart, Germany.

In his spare time, he tries to improve this skill on his trombone and baritone horn as well as getting up to speed, running in the hills behind his house.

Kordt is happy to collaborate on projects in the healthcare industry.

Umbrex is pleased to welcome Chris Moe with Cartograph. Chris Moe joined McKinsey in 2011 as a BA, focusing primarily on Sales & Marketing for B2C companies, across topics including pricing, digital pricing, and growth. After leaving to spend two years at a structured credit hedge fund in NYC, he returned to McKinsey and split between Marketing and Sales and work in Education, focused on University transformations. Chris co-founded Cartograph in 2018, an agency focused exclusively on Amazon consulting for emerging CPG brands.

Chris now lives in Austin, TX, and is always happy to talk Amazon, eCommerce, or CPG.

Umbrex is pleased to welcome Mika Malin. Mika has broad experience in line management and business development roles, as a senior executive and as a management consultant.  He’s tackled complex board level as well as factory floor level business problems as a consultant at the BCG, in a boutique consulting firm and as an independent consultant.

Mika has a track record of successfully leading businesses and people with a P&L responsibility, as well as planning and executing strategy and M&A transactions in a publicly listed media company as a member of the corporate leadership team.  He’s sharpened his marketing and sales skills in world-class fast moving consumer goods companies, in both local and international roles.

MBA from Harvard Business School has provided him with a solid foundation for strategic thinking, an analytical mindset to problem solving and a structured approach towards business issues.

Mika is analytical but action-oriented, he believes in concrete strategy and brilliant execution, he like to structure complex issues into actionable concepts, he take challenges seriously but want to have fun in the team.

Mika lives in Helsinki with his wife and daughter. In his spare time he runs the Harvard Club of Finland as the President of a non-profit organization of 120 members, and what ever spare time he has left, he spends in the hockey rink or on the golf course.

Mika’s geographic focus is in the Nordics and Europe, but will be happy to discuss relevant opportunities beyond these regions as well.

Umbrex is pleased to welcome George Nahra with GZN Consulting.  George spent four years in the Chicago office of McKinsey, in the retail and sales & marketing practices, serving predominantly retailers and other consumer-facing clients.

After leaving McKinsey, he spent several years as a Senior Management Associate at Bridgewater Associates. He then returned to retail, re-joining Abercrombie & Fitch (where he started his career several years earlier) and building the company’s first Strategic Planning function.

He then move to Chico’s FAS, a women’s apparel/accessories retailer with three principal brands: Chico’s, White House I Black Market, and Soma.  At Chico’s FAS,  George led Strategy, Business Development, and International.

George has been an independent consultant twice – once between working for Abercrombie and Chico’s, and most recently since roughly December 2019.  He serves retailers across a wide range of topics.

George lives in Fort Myers,  FL, with his wife and dog. He’d be happy to collaborate on any retail projects