Mergers and Acquisitions : Integration and Transformation Management as the Gateway to Success

110 Pages·2018·1.73 MB·English

by  Bergamin

Management for Professionals
Stephan Bergamin
Markus Braun
Mergers and
Acquisitions
Integration and Transformation
Management as the Gateway to Success
Management for Professionals
BergaminandBraun’sillustrationofhowintegrationprojectscanbeplannedandimplemented
successfullyistheresultoftheirownexperiencesofaround30M&Atransactionsfromdifferent
industries. Their practical approach also features in-depth interviews that are based on the
findingsoftheirresearch.
Moreinformationaboutthisseriesathttp://www.springer.com/series/10101
Stephan Bergamin (cid:129) Markus Braun
Mergers and Acquisitions
Integration and Transformation
Management as the Gateway to Success
StephanBergamin MarkusBraun
Ma¨nnedorf,Switzerland Winterthur,Switzerland
Originally published with the title M&A: Erfolg dank Integrationsmanagement. Heraus-
forderungen,Erfahrungsberichte,PraktikerleitfadenbyVerlagNeueZu¨rcherZeitung,2015
ISSN2192-8096 ISSN2192-810X (electronic)
ManagementforProfessionals
ISBN978-3-319-60503-6 ISBN978-3-319-60504-3 (eBook)
DOI10.1007/978-3-319-60504-3
LibraryofCongressControlNumber:2017942801
#SpringerInternationalPublishingAG2018
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof
the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission
or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilarmethodologynowknownorhereafterdeveloped.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt
fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis
book are believed to be true and accurate at the date of publication. Neither the publisher nor the
authors or the editors give a warranty, express or implied, with respect to the material contained
hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith
regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations.
Printedonacid-freepaper
ThisSpringerimprintispublishedbySpringerNature
TheregisteredcompanyisSpringerInternationalPublishingAG
Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland
Preface
Mergers and acquisitions have become the order of the day. Not a week goes by
without a new M&A deal hitting the headlines in the business news:
LafargeHolcim, dormakaba, Gate Group and HNA, Syngenta and ChemChina, to
name just a few transactions that have made quite a splash in recent weeks and
months.Theyclearlydemonstratethatglobalbusinesstransformationismorethan
abuzzword,butactuallysinequanonformanybusinessestostandthetestoftime
amidsttheirinternationalcompetitors.Technologicaldevelopmentandthedemand
for access to new purchasing and sales markets are turning the economy upside
down.Traditionalcoursesofactionandpatternsofbehaviorarelosingtheirimpact.
New competitors, elevated cost structures, alternative technologies, and new
markets are merely a few triggers of an urgent transformation process. Small to
large businesses all have to decide whether they should keep struggling single
handedlyorjoinforcestobecomestrongerandmoreefficient.
Thereisaneedforagilebusinessorganizationsthatarecharacterizedbyspeed
andflexibility,andtheiropennesstochangearoundthem.
Our experience ofmany years as CFOs and managerswith operativeresponsi-
bilitycombinedwithacademicresearchhasenabledustoidentifysimilarpatterns
thatinmanycasesareparamounttothesuccessofabusinesstransformation.The
followingpresentsalistofthesefactors:
1. Identifytheneedforchangeandcommunicateitsurgency.
2. Accountabilitymustbeensuredandguidingcoalitionsbebuiltfromthestart;in
otherwords,analignedmanagementisabletodrivefundamentalchangesinthe
company.
3. Implement changes perceptively and stringently: An organization requires
changeagentstoimplementchanges.Thenecessityforchangemustbeuniver-
sallyacknowledgedforoverallsupport.
4. Therightspiritcertainlyhelpstoputtheentireorganizationinmotion.
Business transformations are often closely linked with M&A transactions.
A company’s global strategy is deliberately and rapidly promoted by external
growth. M&A transactions thereby are more than mere triggers or the answer to
business transformation; a successful M&A transaction depends on whether any
v
vi Preface
Identify the need for change
and communicate its
importance and urgency
Ensure accountability
Build up spirit and momentum
and build guiding coalitions
Implement changes perceptively
and stringently
Fig.1 Typicalstepsinchangemanagement.Source:Bergamin/Braun
subsequent integration management follows the guidelines of a business
transformation.
Whatarethemostimportantconsiderations?Whatsuccessfactorsandobstacles
promoteorhamperasuccessfulmerger?Mergingwithanothercompanyonpaper
orpurchasingitisonething,butanyfuturevalueaddedcanonlybeachievedwhen
differentcompanyculturesarecombinedtoforgeasinglepowerfulunit.
Growingglobalizationintheeconomyhasspawnedamultitudeofcross-border
transactions: Commerzbank, Kuka Robotics, Champions League finalist Atle´tico
Madrid, Syngenta, Gate Group, Swissport, SR Technics; what do they have in
common?AllthesecompanieshavepassedintoChineseownershipinrecentyears.
The management will certainly have experienced that there is one aspect beyond
thegiftofperceptibility,speed,andflexibilitythattakescenterstageinsuccessful
businesstransactions:opennessforotherculturesandmentalities.
What are the deal breakers? How can an integration process be successfully
kick-started and managed? What challenges are there with respect to different
cultures and mentalities? As managers and CFOs, the authors have personally
mentored close to 30 M&A transactions. This book is an account of their
experiencesandahandbookforsuccessfulintegrationmanagement.
Thefollowinginvestigatesthreeaspects:
1. What are the key factors for success or failure of integration management in
M&Aprojects?
2. What courses ofaction have revealedtobe successfulwith performancetrans-
formationduringtheintegrationprocess?
3. How do global players tackle integration management? Those in charge of the
mergers of dormakaba and LafargeHolcim demonstrate in an exhilarating way
howtheyproceededintheirmergerprocess.
Preface vii
Wetrustthatthepracticaladviceandchecklistsinthisbookcanbeputtogood
useinyourday-to-daywork.
Wewouldliketoexpressourgratitudetoandprofoundrespectforourinterview
partners Riet Cadonau, Christof Ha¨ssig, Walter Oberha¨nsli, Hans Hess, Renato
Fassbind, Philippe Hertig and Wolfgang Werle´; experts Philipp Robinson and
Stefan R€osch-Rütsche and Samy Walleyo. We are thankful for their valuable
contributions and the many rewarding discussions. We also thank Petra
Hanselmannforthechapteronthelegalaspectsofamerger.
Ma¨nnedorf,Switzerland StephanBergamin
Winterthur,Switzerland MarkusBraun
Contents
1 IntegrationManagementinMergersandAcquisitions:
SuccessFactorsandPitfalls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 IntegrationManagementasaGatewaytoPerformance
Transformation. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . .. . . . . .. . . 33
3 GlobalMergerdormakaba:InterviewandCaseStudy. . . . . . . . . . . . 73
4 GlobalMergerLafargeHolcim:InterviewandCaseStudy. . . . . . . . . 87
ClosingRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
ix
About the Authors
Stephan Bergamin holds a Ph.D. in Economics
from HSG University of St. Gallen (Switzerland),
studiedbusinessadministrationattheUniversityof
St.Gallen,andholdsanAMPfromHarvardUniver-
sity. He is CFO of Gearbulk Group, Switzerland.
PreviouspositionsincludeCFOofGoldbachGroup
SIX Swiss Exchange, and Steiner Group. He also
held various national and international financial
positions within Swissair Group, after starting his
careerincorporatefinanceatCreditSuisse.Heisan
author, and lecturer at different educational
institutions. Publications: M&A: Erfolg dank
Integrationsmanagement(2015),DerFremdverkaufeinerFamilienunternehmungim
Nachfolgeprozess. Motive—Vorgehenskonzept—Externe Unterstu€tzung (1995),
BestellerkompetenzFacilityManagement.Strategie—Organisation—Prozesse(2015).
Markus Braun has a Ph.D. in Economics and
Head of International Business ABF at ZHAW
University of Applied Sciences, School of
ManagementandLaw(Switzerland).Heisalec-
turerofbusinessadministrationandalsoreceived
a Ph.D. in Business Administration from the
University of Basel (Switzerland). He was Head
of Corporate Office at Diethelm Keller Holding
AGinZurich(Switzerland)from2004until2013;
prior to that, he held the position of Group CFO
and Deputy CEO of Nuance Group in Zurich
(Switzerland), and various national and interna-
tionalfinancialpositionsatNovartis/Ciba-Geigy.Markusstudiedbusinessadmin-
istration at the University of St.Gallen and economicsat the University ofBasel.
Heisamemberofseveraladvisoryboardsofscienceandeconomics.Publication:
M&A:ErfolgdankIntegrationsmanagement(2015),ProjectCostsinPharmaceu-
ticalResearch&Development(PhDthesis,1987).
xi