Legal Law

Seven Characteristics of the Most Successful M&A Companies

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Disappointed with your company’s earnings performance since your last acquisition? Are you worried that the next acquisition or merger will have a similar effect? You’re not alone! Study after study has shown that mergers and acquisitions are a risky business. Despite the fact that many M&A advisers charge substantial fees each year, almost all major reviews of companies completing M&A transactions show that most of these transactions do not deliver on promised financial performance. Like any other investment, the highest risks produce the highest returns, good or bad. One way to improve your odds is to study the methods of the most successful M&A companies.

 

As an industry executive, I have encountered M&A challenges many times throughout my career. I have also recently interviewed numerous C-level executives from some of the world’s largest and most successful companies in various industries on this topic. I also conducted an online survey of senior managers with extensive experience in mergers and acquisitions. Among the few truly successful M&A companies, seven winning characteristics emerged:

 

Characteristic n. # 1: Successful companies follow a proven path of general acquisitions and mergers.First, they do meaningful strategic planning. This practice allows you to identify acquisition objectives that are excellent strategic adjustments for the corporation, rather than mere opportunities for growth. Second, they do thorough due diligence work. Their due diligence differs from underperforming ones because they probe the depths of business processes and the capabilities and capabilities of information systems on the acquisition target to ensure proper valuation and strategic fit. Third, they negotiate the terms and conditions of the transaction that avoid overpayment. They accomplish this by ensuring that management does not fall in love with the target company. Fourth, they plan a post-merger or post-acquisition integration. That plan includes a comprehensive communications plan, alignment of objectives and performance measures, and integration of processes and systems. Fifth and last, once the deal is closed, the most successful companies relentlessly execute the planned business integration and assimilation activity. Mergers and acquisitions require detailed planning, rigorous management, and aggressive execution to be successful.

 

Trait # 2: Successful companies use initiatives or projects to perform integration and fundamental project management techniques to manage each of the initiatives.Every company, including yours, has a unique combination of strengths and weaknesses, and strategies for going to market. The combination of these factors dictates which specific initiatives your company should use to assimilate the new business unit. In some cases, the most pressing needs will revolve around rationalization of personnel, facilities, and capital equipment. In other cases, the most important thing will be to achieve common elements in the information systems to allow cross-selling and rebranding. Whatever the combination, your company must lead these initiatives effectively through a formal program management structure. Formally structured and carefully managed initiatives are an important characteristic of the most successful M&A companies. Formal program management requires elements such as a detailed project plan, discrete milestones, defined performance measures, designated responsibilities, risk management and change management processes, etc. Initiative-based integration rooted in a strong go-to-market strategy will improve the odds of successful M&A performance.

 

Characteristic n. # 3: Successful companies pay significant attention to the mix of cultures, organizations, and human resource issues, such as management retention.If your company has been through an acquisition or merger, you already know that the different cultures of the companies involved always make the situation challenging. In hostile takeovers, it can be devastating. Employees often find that behaviors previously rewarded by their company can sometimes result in demotion or firing. Performance criteria change, as do the people who measure performance. When this happens, the management of the acquired company, as well as many of the employees, feel threatened, defensive and resentful. Loss of key leadership in critical transition periods can ruin the deal, and even when the entire deal remains intact, the resulting organizational instability often consumes so much energy and time from the remaining managers that it takes the new company more time to achieve. expected financial performance goals. Some M&A advisers report that up to 72 percent of key managers make their way within three years of an acquisition or merger. Almost all successful M&A companies incorporate a formal culture management structure into their integration planning. Some even implemented specific performance measures to monitor the success of the culture fusion after their formal public announcement of the merger or acquisition. Human resource details, from communication to compensation, are critical to the success of mergers and acquisitions.

 

Characteristic n. # 4: Successful companies ensure that the acquisition is an integral part of the overall business strategy. Some of your company’s acquisitions don’t mesh well with the rest of the business? Responses to my recent survey of senior managers with extensive involvement in M&A indicated that the selection of acquisitions that fit strategically well was the third most critical issue for M&A success. The strategic adjustment implies a close alignment of the markets served, the proprietary technologies, the Research and Development direction, the financial position (income, market share) among the companies involved. It also means that there is a real and measurable set of opportunities related to synergy between the two companies. The best M&A executors maintain a strong strategic plan with go-to-market strategies, internal operating strategies, specific performance targets, and performance metrics linked from top to bottom across the company. They incorporate the alignment of those acquisition goal elements into integration planning for their transactions and tighten them shortly after the deal is consummated. Effective planning is a critical element of business success. In M&A situations, it should also be the basis for all major decisions.

 

Trait # 5: Successful companies are assigned full-time resources and strong lines of executive responsibility for successful acquisition.Does your company assign full-time teams to search for acquisitions, or do you rely on the part-time efforts of people who also have a day job? The pressures of day-to-day job responsibilities for key staff members make it incredibly difficult for them to focus on a part-time assignment related to M&A activity. Early allocation of qualified full-time resources to these tasks as early as possible in the due diligence phase of the acquisition or merger process is often critical to success. General Electric, arguably one of the best acquirers in the business (arguably one of the most prolific) recognized that management experience made a huge difference to the success of their efforts and, as a result, decided a few years ago to appoint the management of integration as a full-time role in your company. Studies by GE and others show that companies that assign full-time teams have better M&A records.

 

Trait # 6: Successful companies have discrete goals for integration activities and relatively short-term financial goals that are quantitative.In the last acquisition of your company, were the specific performance targets publicized and widely publicized? While goals such as “increase by one year” are quantitative enough, they must be broken down into a set of accompanying initiatives and performance measures to be useful. The best companies understand not only what the high-level goals are in quantitative terms, but also what specific actions will be taken, by whom and by when, to achieve the desired result. Hence the detailed project plans around a defined set of initiatives described in Feature # 2, above. Initiatives can be related to revenue growth, market share growth, or reduced operating costs. They can involve a wide variety of actions, such as establishing strategic partnerships for marketing or distribution, efforts around cross-selling or rebranding, rationalizing facilities, new research and development initiatives, organizational restructuring, and system upgrades. of information. The most successful companies march through low-key initiatives toward quantitative targets. Achieving these discrete goals enables the newly merged company to achieve specific financial goals at specified times. The most successful M&A companies are those that most discreetly define what success means.

 

Characteristic n. 7: Successful companies move assertively to get the newly acquired business entity into common business processes and information systems early on.One of the C-level executives I interviewed (this was a Financial Services executive) in preparation for my book said: “We have three main priorities in these transactions: gaining market share, increasing assets, and reducing operating costs in proportion to the assets we manage. Bringing the acquired entities into common processes and systems is strategically critical for us to achieve that third goal. But beyond our financial performance, it impacts our employee morale, our ability to present a consistent face to our customers, and our efficiency in employee training. When a company like ours has a systematic approach, they can incorporate new acquisitions into common processes and systems in six to nine months. “Most of the leading companies in this area, including companies like GE and Cisco, exhibit this characteristic. Unity and consistency produce and exhibit strength for customers and shareholders. The strength of unity and consistency is never more important than the period immediately following a merger or acquisition.

Lifestyle Fashion

Growing Orchids Isn’t As Difficult As You Think: A Beginner’s Manual

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Many people want to grow orchids, but do not try, fearing that they will be too difficult to care for. The truth is that many orchids are not difficult to grow. It just takes patience and basic information about their care. Most people who dare to try orchid growing are quickly hooked and eventually end up with a collection of them. Visit an orchid show and talk to the people who sell them. They are valuable in helping you choose the right orchid to start with. There are orchid societies all over the world, so take a look. They all have annual shows, where you can find great deals on very beautiful orchid species. Here are some key things to remember when venturing into the colorful world of orchids.

Use the correct growing medium for the type of orchid you choose

There are different types of orchid media, as orchids do not grow in the ground like normal plants do. Most large home hardware stores today sell orchids and the bark mix in which they grow. The mix that is sold usually contains charcoal, sphagnum moss, bark, and other ingredients. Orchid roots must be exposed to air or the plant will die. This is why you need a mixture that has a coarse texture, to give the roots the air they need.

Buy the right pot to grow the orchid

There are wooden baskets sold in hardware stores to grow wonderful orchids. Cover the basket with sphagnum moss on the bottom (so the substrate doesn’t fall off), then use the bark mix inside. When buying an orchid plant, take it out of the mix it is currently growing in, because they are usually potted temporarily, with no air for their roots. However, its substrate has become stale and mushy. You want a fresh new bark mix to loosely encircle the roots so that they are anchored and still breathing.

Ceramic orchid pots are available, with holes on the sides and bottom. The more holes in each pot, the better it will be for your orchid. Whatever type of pot or basket you use, hang it or place it in a place where the roots will not rest in the water. When I live in a dry climate, I put my orchids on a pebble tray, filled with water, so that the orchid can absorb the water but not get puddled. The roots should not touch the water, so if you want, place a saucer under the pot to prevent it from getting wet. When watering, be sure to drain the saucer underneath afterwards.

General care

Feed the orchid a weak orchid food every two weeks. Do not feed large amounts of plant food, or the leaves may burn. “Orchids react slowly to chemicals and anything else. Don’t expect an instant reaction from them, most of the time there is none. All in your own time (bloom, look cheerful, look faded, etc.) they lightly will reward you for it with flowers, later.

When the flower stalk dies, the plant goes into “sleep” mode, so don’t think it’s dead. Some people throw it away, thinking that it has given up. You are actually taking a break and regenerating. Leaf production usually increases for a while, then another stem appears on its own schedule. Depending on the type of orchid you choose, they may bloom intermittently or infrequently. A good starter orchid is called Phalaenopsis, or the “moth orchid.” You will see them everywhere in stores, their round flowers grow on long, thin stems. They come in colors like pink, white, or yellow. If the flowers are not touched or disturbed, they can last for months. Some of my Phals have had the same flowers for 6 months each! They do well in low light situations than many other types of orchids. Speaking of light, don’t put an orchid in full sun or it will most likely burn (large brown spots may appear on its leaves). Filtered light is better, most of the time. When you choose a place for the plant and it is happy, do not move it. Orchids hate being moved. It can affect their bloom if you do so, so make them happy and leave them where they are.

With a little time and love, your orchids will thrive. Give them time and read about them. Many good basic books on orchid growing are available. In time, it will come back for another plant and then another. My orchids live on my balcony and grow like weeds. They don’t need a lot of care, since the place where I live is humid and I live in a lake. Go ahead and try the orchids. Have fun and enjoy its exotic beauty.

Pets

Is a Doberman a good family pet?

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Before deciding to add a dog to your family, you should have a family conversation and determine if you can devote time and energy to your newest member. Any puppy takes a lot of work and you have to remember that your puppy will grow up and be with you for many years. If you are considering getting a specific breed, chances are, if you have children, you would not consider a Doberman Pinscher.

Thanks to film and television, Dobermans have a reputation for being fierce watchdogs. Naturally, you wouldn’t think that a Doberman would be the best family pet. It is understandable to have concerns. Dobermans are working dogs bred for protection, however the breed has evolved over the years. Dobermans can be wonderful pets for families with children, but as with any breed, you should do your research before purchasing.

It is best to have a Doberman as a puppy, as socialization will be such an important aspect of their upbringing, and any puppy, regardless of breed, should have basic puppy kindergarten classes. Your Doberman puppy will learn to blend in with other family pets and will want to get to know all the neighbors and their pets, as well as family friends. Dobermans love to be with their people, right in the middle of everything. They are not suitable to be tied up or locked in the backyard. They will not do well if left home alone for long periods of time.

There are a few things to keep in mind if you choose to get a Doberman. One thing you may not realize is that Dobermans have a very high prey drive. This means that they will want to chase small animals and are likely to run away if given the opportunity. In addition, they are very sensitive dogs, so they will capture the moods of the family, whether happy or sad, and they are especially sensitive to stress.

Today’s Doberman is bred to have a stable temperament and good health, however they are prone to certain disorders, including VonWillebrand’s, which affect the ability of blood to clot. This can lead to serious blood loss from injury or surgery. Puppy parents should be screened for VonWillebrands and also Wobbler syndrome, which is a narrowing of the cervical vertebrae that affects the dog’s ability to walk.

If you want a fun, active, and sometimes comical addition to your family, you should consider a Doberman. They are loving, loyal, and easy to train. They will protect you and your children instinctively. If you decide to add a Doberman to your family, you will discover why they are known as the “velcro dog.”

Shopping Product Reviews

Online Marketing Strategies for 2017

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If you want to market well, you need to plan, anticipate changes, and benefit from trends. The year before was a great year for online marketing. To stay competitive, you must use the following marketing strategies in 2017.

1. Augmented reality

Who knew that Pokemon Go would make millions of dollars every day? The app gave us two lessons: Today’s users like augmented reality experiences and that the potential is great for those who want to enter this world. In the future, you will find more brands offering augmented reality ads, augmented reality games, etc.

2. Live broadcast

Today’s social media users are interested in real-time content. Today, live streaming has become easier due to high internet speeds and millions of mobile devices. You can see that more and more apps are coming with live streaming of videos. Therefore, you may want to take advantage of this feature this year.

3. Data visualization

If you are a marketer, you know the importance of data. Actually, you should use quantitative information to find out who is interested in what. The problem is that today’s data analysts have a hard time understanding what the data says. In reality, our brain cannot process a large amount of data without the help of machines.

Now, data analysis has become a piece of cake due to technological advances. Today, you can benefit from tons of data analysis tools that are available in the market. In the next few years, the technology will get a little more sophisticated and you will have a greater need to analyze data.

4. Native advertising

When it comes to trends, native advertising is on the oldest trend list. In fact, it has been used for years. Actually, this strategy gives you a kind of natural visibility.

Nowadays, native advertising is gaining popularity, as buyers do not place as much importance on traditional types of advertising. Furthermore, this form of advertising is a more sneaky method of getting consumers’ attention.

5. Specialized markets

There is an influx of online marketers, but the number of consumers is not increasing at the same rate. Millions of new brands enter the same markets to get their share of the revenue. This is true when it comes to social media.

So what can you do to be successful? Well, you may want to be specific. In other words, you need to target a specific niche and try to appeal to a smaller demographic with a specific product.

6. Immersive experience

Today, users are immersed in experiences. Actually, they want to do more than just look at their smartphone screens. So virtual reality and augmented reality are the two things that can be used to get users’ attention. So how can you benefit from this technology? Well, you can use 360 ​​videos, for example.

So, if you are looking for some solid online marketing strategies for 2017, we suggest you check out these strategies. They have worked for many people. Hopefully, they will work for you too.

Sports

Republican Electoral Interference: History Lessons Series 2

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American audiences love sequels. If you loved or hated the Mueller report, you will love or hate the aftermath of Congress when public impeachment hearings begin on November 13. Donald Trump seemed to get away with electoral interference “to his face” in 2016. Can he do it again in 2020? If so, will you be looking for a third or fourth sequel?

But there is more. Trump episodes are a rerun of the Nixon dramas of 1968 and 1972. President Johnson and senior officials around him knew that Nixon got away with foreign policy interference in 1968 and thus won the election through dirty tricks. international Although unknown at the time, the Watergate robbery was a sequel in national politics to Nixon’s successful interference in 1968.

Although the outcome of the unfolding impeachment drama remains uncertain, three historical lessons can be seen, although its outcomes cannot be predicted at this time. Contrary to what you hear, history does not repeat itself. But some themes and patterns repeat themselves, taking unexpected forms that pose new dangers and possibilities as in the case of these three lessons.

Lesson One: Parallelism. Nixon was caught during his second term for illegally meddling in an election he was sure to win. Had he gotten away with illegal meddling in the 1968 election as President Johnson sealed the evidence of concern for national security. Donald Trump meddled in the 2016 campaign in front of television cameras. The investigation of his actions was kept secret even when his opponent’s investigations affected the campaign. Trump damaged the effectiveness of the Mueller Report by attacking it for two years and then having his Attorney General undermine it when it was published. DESPITE the evidence that should have led to impeachment, it appeared that meddling during the 2016 campaign might not prevent Trump’s reelection.

The parallel with Nixon is clear after the Mueller Report. Needing even more help as Russia win re-election, Trump began gathering investigations into his most feared adversary in 2020 by using congressionally funded military aid to extort money from the President of Ukraine. This was not done on camera, but in the presence of seasoned diplomatic professionals who understood the dangers to our national security.

Seeming to have escaped meddling for a first term, Nixon HAD has also escaped, Trump was caught doing the same thing for a second term. The whistleblower complaint had the effect of a botched theft at Watergate. Both events brought to light events destined to happen in secret. The investigations then brought people with heavy consciences in front of cameras exposing presidential dishonesty to the world.

Lesson two: predictable versus unpredictable outcome. Political and scientific media commentators behave more like football announcers when they focus on political games to predict the outcome of this impeachment process. The outcome of Bill Clinton’s impeachment was clear when Senate Democrats backed him, agreeing with the majority of the American people that he had done wrong but should not have been charged. Nixon’s outcome, however, was not predictable. He was not charged or prosecuted because support collapsed to the point that he resigned instead of enduring the process. So if Trump’s impeachment fails, it will happen predictably when Senate Republicans follow Mitch McConnell and hold the line. If the impeachment is successful, you will most likely take a course that is not scheduled at this time and will demonstrate Nancy Pelosi’s ability to negotiate impossible situations.

This impeachment process hinges on the contest between Mitch McConnell and Nancy Pelosi. It is possibly the last battle in the war between them since the Affordable Care Act (ACA). McConnell kept the Republican line in the Senate when the ACA passed with a 60-vote Democratic majority. Soon after, Democrats lost one of those seats and it seemed certain that the House would never accept the Senate version. That’s when Pelosi did the impossible, proving herself as a closer when necessary – even when it meant losing the majority in the House. McConnell then used the ACA to defeat the Democrats during four consecutive legislative elections. However, the elimination of the ACA was only possible after the 2016 victory with Trump’s victory. It was then that public opinion changed as it is becoming clear that there was no Republican alternative to the benefits that millions of people would lose. Mitch McConnell appears to have the upper hand if impeachment moves to Senate trial. No one doubts that he intends to support the party rather than the country; He already committed to that choice in the 2016 election when he refused to support President Obama’s actions against Russian interference.

HOWEVER, Nancy Pelosi handles the process before it reaches the Senate. He has an impressive winning record when committing to fights and shouldn’t be underestimated. He has also shown his commitment to the country more than to the party. If its strategy leads to a successful Overthrow of Donald Trump, it will follow a path that almost certainly no one can predict when the public hearings begin.

Lesson three: Russia and China. Nixon meddled in two elections while we were in a war in Vietnam. Our enemy was North Vietnam, but I knew they were an indicator of China and Russia. Nixon was also extremely adept at redirecting national policies towards China and Russia so clearly promote world peace and not undermine our international alliances.

Any true disciple of Nixon Republicanism should be surprised that Nixon’s revenge team, Roger Ailes, Paul Manafort, and Roger Stone used Russian help to elect Donald Trump. Meddling in Ukraine Russia also helps other allies while demonstrating that you can not trust us.

Eisenhower, Nixon and Reagan would roll in their graves (if such a thing were possible) at the prospect of a single Republican president crawling into Russia, attacking our European allies, undermining South Korean confidence and Japan and send our farmers to recession through a trade war with China that has constantly undermined agricultural supply chains. These first-term accomplishments will be followed by greater catastrophes if the current electoral meddling brings a second Trump presidential term.

Conclution. Richard Nixon undermined peace efforts in Vietnam as part of his 1968 bid for the presidency. Lyndon Johnson withheld that fact from the public out of concern for national security. Nixon meddled in the 1972 election, was captured, and had to resign to escape impeachment. Three revenge-seeking Nixon supporters – Roger Ailes, Paul Manafort and Roger Stone – helped Donald Trump win the 2016 election with the support of Russia. Trump’s opponent was known to be under investigation by the FBI, but news of a more serious investigation into Trump was kept under wraps. The FBI investigation resulted in the work of Special Counsel, Robert Mueller, being successfully obstructed. Mueller’s results played by the rules in a way that seemed to reward obstruction. With the help of an obedient attorney general, it appeared that Trump had escaped. Then came news from a whistleblower, like the shocking news of the Watergate robbery. This prompted a number of professionals to speak the truth to Congress and sparked an impeachment investigation.

Like Nixon, Trump was caught with a smoking gun in his hand. Both escaped the assassination of the first half. Will Trump escape a second time?

The answer depends on the American people and Nancy Pelosi. The public is about to hear the truth. Will we recognize it and demand the removal of this president? If impeachment is successful, it will happen because of the vision and integrity of Nancy Pelosi and her team. And the outcome will be something none of us will be able to predict when the public hearings begin.

References on Nixon’s 1968 electoral interference:

Peter Baker, “Nixon Tried to Spoil Vietnam Peace Talks in ’68, Notes Show,” The New York Times (January 2, 2017), https://www.nytimes.com/2017/01/02/us / politics /nixon-tried-to-spoil-johnsons-vietnam-peace-talks-in-68-notes-show.html.

John A. Farrell, “When a Candidate Conspired with a Foreign Power to Win an Election”, Revista Politico (August 6, 2017), https://www.politico.com/magazine/story/2017/08/06/ nixon-vietnam-candidate-conspired-with-foreign-power-won-the-elections-215461.

Robert Johnson, “Did Nixon Commit Treason in 1968? What New LBJ Tapes Reveal”, History News Network, https://historynewsnetwork.org/article/60446.

Charles Wheeler, “The Lyndon Johnson Tapes: Richard Nixon’s ‘Betrayal’,” BBC News Magazine (March 22, 2013), https://www.bbc.com/news/magazine-21768668.