It's #MergersandAcquisitions Monday... If so many deals fall through before term sheets are signed... Why are top deal makers implementing #integration teams and #integrationmanagementoffices 𝗯𝗲𝗳𝗼𝗿𝗲 the deal closes? Kison Patel talks with Seema Nimmagadda, Head of M&A Integration, North America Head of M&A Integration, North America, Woven by Toyota on the outstanding podcast, M&A Science. In her interview, Seema talks about 4 steps to implementing a successful pre-deal close integration, recommended to start during the due diligence phase. But implementing an Integration Management Office (IMO) needs to be a dual-side effort. Both Buyer (often a #privateequity firm) and Seller need to carefully select the right people and generate the right method for ensuring that what happens AFTER the deal closes doesn't diminish value instead of drive it. It is a delicate effort because of confidentiality issues. Very often there isn't the bandwidth to devote full time leaders to the integration team while they are running day to day operations. This is where #fractionalexecutives can be so helpful. Selecting ones who have the ideal industry experience AND M&A expertise can be hugely beneficial to the process and to productivity. It's often been thought that starting integration too early is wasteful because so many deals don't close. On the flip side, many more deals could close if more strategic integration efforts - in sales, marketing, technology, finance, operations, and human capital, were explored, pitfalls avoided earlier. Although Seema is overseeing a division of a giant enterprise, her Woven team is quite small and entrepreneurial. Thus, it mirrors what many SMB's experience when going through an acquisition or being acquired. Give this a listen, and think about who should be on your integration team - sooner rather than later. I'll post the link to the podcast in the first comment box. #PrivateEquity #integration #fractionalexecutive #VistageLosAngeles
Thanks for sharing this podcast Nancy with great insights from Seema. So often there is laser focus on getting the deal done and less thought about communicating post-deal, and the critical change management piece. Another great opportunity for a #fractionalexecutive who can step in to lead with experience and authenticity.
Nancy Fox -The Fractional Fox this is great advice. Often, key issues that arise in diligence are cruxes for integration. Once certain go / no-go diligence is conducted, integration personnel should be involved to give the transaction every chance for success. While not every organization is large or acquisitive enough to justify a full-time integration team, fractional executives can fill the role perfectly where there’s not a dedicated team.
This is great! thanks for sharing the podcast with us. Question: This is where #fractionalexecutives can be so helpful. Selecting ones who have the ideal industry experience AND M&A expertise can be hugely beneficial to the process and to productivity. WHO is selecting the fractional at this point? The buyer or the seller? Thx
It was interesting that I was just researching automation integration, so all my apps talk to each other seamlessly as I'm digitizing my courses, and here is the human factor. A must to close the deal—right on as usual.
What a smart thing to consider - using a #fractionalexecutive to help with the integration team - choosing, leading and coaching. I can easily see how this could make the transition more smooth and deeply integrate both sides of the deal! Thanks for the share Nancy Fox -The Fractional Fox
I appreciate the insight! Strategic integration efforts pre-deal closure optimize value and mitigate pitfalls, enhancing overall deal success and long-term performance.
This is so inspiring Seema Nimmagadda !
ProductWYZE is a product development co. helping consulting/fractional exec firms scale up with little/no staff via recurring revenue, productized services, subscription offers, founder Assoc of Productized Professionals
9moGive a listen to this episode of M&A Science - it's chock-filled with valuable insights for integration success. https://open.spotify.com/episode/3oFOecgYDawkgdP1j7kb9e?si=vCF-tonKRwCvv264ukqdMg