33 min
S2 - Ep7: M&A Stories on business strategies on growth and importance of integration with Dirk Hendrickx Fifth Chrome Business Insights
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- Management
Interview on "M&A Stories on business strategies on growth and importance of integration" with Dirk Hendrickx
Show Notes:
Mergers and Acquisitions can play a big part in the growth strategies of companies but it is the integration where you actually create the value. Companies need to start thinking about aspects of integration even before the due diligence process. Companies shouldn’t have M&A as the only strategy. However, M&A can help accelerate growth, it can help to enter a new country and help acquire talent.
Markets that are evolving fast have a lot of companies and entrepreneurs that come up with new technology, new solution and the only way you can acquire that is through acquisition.
Larger companies may have excess cash that they can deploy to help the smaller acquired companies. The smaller companies use the cash for marketing and expand their market penetration. The acquired companies can also deploy the cash to win bigger projects.
Companies often get caught with the technical details of IT system consolidation and other tactical stuff instead of focusing on how the management team of an acquired company can be helped.
Another key aspect is the personalities involved in an M&A integration. The people, the culture, their mentality.
Key Stage of Integration starts even before the due diligence where you may end up asking the leaders of the target company on what value do they see in that M&A transaction. It can provide great insight into the organization as well as the leadership team.
Expect the unexpected during the conversation with both the target company and the acquiring company’s leadership.
Language remains a key challenge in any integration. Also, culture is something that gets rarely discussed in most cases. It is assumed that people will figure out how to work together.
It is a good idea to over-invest in resources during integration.
M&A is a great way to grow a business. However, integrating the acquired businesses is where the real value creation takes place. Without a proper integration plan, you are essentially signing a plan to throw money down a drain. So, watch out!
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Watch this episode and learn more about what Dirk Hendrickx has to say about the importance of integration during Post-Merger Integration.
Dirk is a people-centered, multilingual leader with high integrity and a strong commercial focus. Proven at delivering results across multiple industries for both global, matrixed blue-chips to more entrepreneurial, family-owned businesses. Lived and worked in 4 countries, adaptable, non-judgmental, and quick to switch gears.
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https://www.linkedin.com/in/ceodirkhendrickx/
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The hosts of the interview are:
Anirvan Sen, CEO Fifth Chrome: https://www.linkedin.com/in/anirvansen/
Marcella Hall, HR M&A Expert: https://www.linkedin.com/in/hallmarcella/
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This interview is part of a series run by Fifth Chrome, a firm that enables experienced professionals to build "Future Capabilities for Business to thrive".
-------
Books mentioned:
https://smile.amazon.com/Diagnosing-Changing-Organizational-Culture-Third-dp-0470650265/dp/0470650265/ref=mt_other?_encoding=UTF8&me=&qid=1628746589
https://smile.amazon.com/Organizational-Leadership-Jossey-Bass-Business-Management-dp-1119212049/dp/1119212049/ref=mt_other?_encoding=UTF8&me=&qid=1628746681
Interview on "M&A Stories on business strategies on growth and importance of integration" with Dirk Hendrickx
Show Notes:
Mergers and Acquisitions can play a big part in the growth strategies of companies but it is the integration where you actually create the value. Companies need to start thinking about aspects of integration even before the due diligence process. Companies shouldn’t have M&A as the only strategy. However, M&A can help accelerate growth, it can help to enter a new country and help acquire talent.
Markets that are evolving fast have a lot of companies and entrepreneurs that come up with new technology, new solution and the only way you can acquire that is through acquisition.
Larger companies may have excess cash that they can deploy to help the smaller acquired companies. The smaller companies use the cash for marketing and expand their market penetration. The acquired companies can also deploy the cash to win bigger projects.
Companies often get caught with the technical details of IT system consolidation and other tactical stuff instead of focusing on how the management team of an acquired company can be helped.
Another key aspect is the personalities involved in an M&A integration. The people, the culture, their mentality.
Key Stage of Integration starts even before the due diligence where you may end up asking the leaders of the target company on what value do they see in that M&A transaction. It can provide great insight into the organization as well as the leadership team.
Expect the unexpected during the conversation with both the target company and the acquiring company’s leadership.
Language remains a key challenge in any integration. Also, culture is something that gets rarely discussed in most cases. It is assumed that people will figure out how to work together.
It is a good idea to over-invest in resources during integration.
M&A is a great way to grow a business. However, integrating the acquired businesses is where the real value creation takes place. Without a proper integration plan, you are essentially signing a plan to throw money down a drain. So, watch out!
-----
Watch this episode and learn more about what Dirk Hendrickx has to say about the importance of integration during Post-Merger Integration.
Dirk is a people-centered, multilingual leader with high integrity and a strong commercial focus. Proven at delivering results across multiple industries for both global, matrixed blue-chips to more entrepreneurial, family-owned businesses. Lived and worked in 4 countries, adaptable, non-judgmental, and quick to switch gears.
---------
https://www.linkedin.com/in/ceodirkhendrickx/
-------
The hosts of the interview are:
Anirvan Sen, CEO Fifth Chrome: https://www.linkedin.com/in/anirvansen/
Marcella Hall, HR M&A Expert: https://www.linkedin.com/in/hallmarcella/
-------
This interview is part of a series run by Fifth Chrome, a firm that enables experienced professionals to build "Future Capabilities for Business to thrive".
-------
Books mentioned:
https://smile.amazon.com/Diagnosing-Changing-Organizational-Culture-Third-dp-0470650265/dp/0470650265/ref=mt_other?_encoding=UTF8&me=&qid=1628746589
https://smile.amazon.com/Organizational-Leadership-Jossey-Bass-Business-Management-dp-1119212049/dp/1119212049/ref=mt_other?_encoding=UTF8&me=&qid=1628746681
33 min