Posts Categorized: Springboards for a Quantum Leap Integration

M&A Integration: The Opportunity for Quantum Leap Value Creation – Webinar Tuesday, May 21 at 1 PM ET

Top management, the board and stakeholders have high expectations on the overall ROI. How ready are you?. Join this Webinar panel of experienced M&A integration professionals to focus on how to better prepare for and execute the critical integration phase of he M&A lifecycle.

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Mr. Acquirer: Your Company Can Deliver, But Can It Discover?

Ronald Shaich, founder and co-CEO of Panera Bread, holds that companies let their “delivery muscle” completely outweigh the “discovery muscle” that is involved in trying to innovate. A company needs both, but the “discovery muscle” is perhaps even more of a driver for what will make the difference. Acquiring companies tend to base their integrations on a rationalistic model emphasizing efficiency, speed and minimal risk taking. Are acquiring companies sufficiently developing their “discovery muscle” to produce extraordinary value creation gains?

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Google Acquisitions and Integrations – A Tale of Two Cities

Google has two acquisition/integration “cities” or approaches. The first acquisition “city” is the one which Google has successfully evolved for its smaller acquisitions, and there have been many of them, since 2001. The second “city” is the one involving Google’s $12.6 billion mega acquisition and integration of Motorola Mobility. In the last five years, it has reshaped its approach from a an eclectic set of loosely thought through and opportunistic cluster of practices into a model for how to effectively search out promising target candidates and dynamically integrate them into the Google enterprise. This is the “city” we will be taking stock of in this month’s Newsletter.

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M&A’s Continue Unabated During Economic Roller Coaster

August has been a month filled with upheaval. This is the month that world economies took front row seats on a major economic roller coaster ride that had many of the signs of heading into a next global recession. In the midst of all of this volatility the M&A world had its greatest volume “Merger Monday” for acquisitions of all of 2011, to the surprise of many. Adding a further dimension to this extraordinary mix, HP and Bank of America announced massive corporate divestitures. Their sell offs are the outcome of ill conceived acquisitions and ineffective integrations that took place years earlier, in 2008 and 2004. At root, all of this underscores the reality that acquisition strategy and integrations are not a sprint, but instead are a marathon: a whole process, not a loosely joined series of event…This and more in the August Newsletter!

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Integration Issues & Partnering: A Capability to be Cultivated

In this edition we first look at several acquisitions that illustrate broad reaching issues and trends in current acquisition practice. Each demonstrates that there is more to acquisitions and integrations than a simple plan that can be neatly carry out an in isolation. Rather, each shows that acquisitions take place in a context and most often the integrations that follow do not play out on the straight, logical line we would like them to.

We then examine the importance of adopting an authentic partnering approach in acquisitions. Making the choice to cultivate a partnering relationship is key to engaging the acquirer and the acquired firms from top to bottom and across the board. A partnering capability is usually given lip service, if that. Overcoming the tendency to say “We bought you, we own you…It is our way or the highway” requires a major shift but that is exactly what is necessary to enable the access and flow of capabilities that become the basis of the newly combining firm.

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Capabilities-Driven Strategy + Core Integration Capabilities = Quantum Leap Acquisition Gains!

Leinwand and Mainardi skillfully demonstrate how choices of specific capabilities support the a company’s ability to create its brand of distinctive value. Our caveat is that, while specific capabilities are the foundation for path and actions for a company, it remains the case that it is the core integration capabilities that enable an integration that can achieve unprecedented results. Armed with this realization we can better articulate how a core set specific capabilities can join with the full power of core integration capabilities to yield the full complement of what a company needs for its quantum leap change.

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Acquisition Trends for 2011 and Why Groupon Rejected Google’s $6 Billion Acquisition Bid

In this issue we first take a look at the active sectors for acquisitions in 2011 and what the drivers are for this broad upswing.  Then, before you get too comfortable in the mainstream view of things, we make a departure to glimpse on the impact of the emergence of new, dynamic firms on what… Read more »

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Google’s Acquisition Bid for Groupon Takes Us To The New Reality

On rare occasions a clearly spectacular and indicative acquisition bid gets underway. Google’s offer to Groupon for $6 billion is definitely in that very special number. A Groupon acquisition has the makings of being as a true game changer that goes far beyond the usual case for growing increased scale or expanding market possibilities. It is those two, but much more.

Aside from the eye catching amount of money involved, there are important lessons for any company considering an acquisition or that might become a target. The obvious thing is that Groupon is such a pure capabilities and intangible assets play. The noteworthy thing here is that highly valuable intangible and capabilities can often be found, if in lesser degrees, in the embedded special knowledge and capabilities in any acquisition.

Because of this, the extraordinary acquisition offer for Groupon, the start up online discount coupon company, is well worth our attention. This is not only because that this is a larger than life story, but also because we can learn such a tremendous amount from it.

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$3 Trillion in New M&A’s + Springboard #1: Identifying ther Customer Strategy for Your Newly Combined Company

The New York Times DealBook has commented that “The recent rebound in mergers and acquisitions is expected to strengthen significantly next year, according to a new report, with global deal activity on track to rise 36 percent, to $3.04 trillion.” The pace is picking up. But are we just repeating the cycle with the same approaches and practices?

Springboard #1: Your New Customer Strategy
Setting in place the right set of springboards is necessary if an acquiring company wants to achieve a quantum leap integration. The first springboard involves identifying your renewed customer strategy and building your brand framework from that. Your new customer strategy should outline how your company will provide value to different segments of your customer base. It should identify the brand experience and levels of customer relationships that your company is seeking to obtain.

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The Return of the Mega Acquisition

The Return of the Mega Acquisition – “Will these be game
changing acquisitions or exercises in bulk generation? and Part II of the Newell Rubbermaid integrations and divestitures – The difficult decisions Newell Rubbermaid had to make and
divestitures to get itself back on track in move towards being a fully integrated enterprise..

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