Surviving And Thriving
24
Surviving And Thriving During a Merger, Acquisi0on, Dives0ture or Other Change in Ownership July 24, 2013 Presented by Tom Marx 1 © 2013 Marx Group Advisors - Surviving And Thriving During A Merger, AcquisiGon, DivesGture Or Other Change In Ownership
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Transcript of Surviving And Thriving
SurvivingAndThrivingDuringa
Merger,Acquisi0on,Dives0tureorOtherChangeinOwnership
July24,2013
PresentedbyTomMarx
1 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
TomMarx
• Thebeginning• 25+yearsintheaNermarket• 12+yearsinM&A• Productsandchannels• AcGvemember
2 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
M&ASurvivalSummary
3
M&Ascenarios
Whattoexpect
Howtosurvive…andthrive
©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
M&AScenarios
4
SellCompany;Divesta
BusinessUnitAcquire Merge
OwnershipEvents
TheroleofPrivateEquity
(PE)
©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
SellorDivest
• Exitstrategy:plannedornot!• ReGrementandnobullpen• Accidentorillness:suddendeath• Financialchallenges• Disagreementsbetweenpartnersorfamilymembers• Approachestocorporaterestructuring• Eliminateunderperformingorcapitalizeonbe`er
performingassets• Freedom–Itain’tfunanymore!• Anofferyoucannotrefuse!
5 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Acquire
• Growordie• StrategicacquisiGons
– Territory– Marketshare– Economiesofscale– Gainnewcustomers,suppliers,
management,technology– Takeoutthelowpriceleader
6 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
A B
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Merge
• MergersarepropelledbymanyofthesamereasonsasacquisiGons
• Sharedownership/equityratherthanstraightbuy-out• Sharedresponsibility• PowerandvalueoftheenGGesallowforcontrolledequity,joint
powertomakedecisions…strengthsorweaknessesoftheparGesdefinesifmergeroracquisiGon
7 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
A
B C
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
OwnershipEvents
Successionplanninggoneright:• NextgeneraGonmovesintoleadership• Seamless• Allonthesamepage• Plansuccessfullyexecuted
8 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
OwnershipEvents
Successionplanninggonewrong:• CurrentgeneraGonwon’tdepart• Illnessorworse• FricGonbuilds,frustraGongrowsandfinallyoutsidetherapy
comestorescue• Planisn’texecuted
9 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
RoleofPrivateEquity
• Providefunds/experGseneededtogrowthebusiness• Supportsuccessionplanning• Buyoutcertainfamilymembers• OwnergetsparGalcash-outandbusinessgrowsbigger• TheulGmateexitstrategy• Result:PEfirmnowownsapiece(orall)oftherock
10 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YouandTheChange
Haveyouexperiencedthesescenarios?• Sell• Acquire• Merge• Ownershipevent• Privateequity
11 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YouandTheChange
Whattoexpect?• Survival• OrganizaGonalconsolidaGon• YourvaluetosurvivingenGty• Leadership
12 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YouandTheChange
Theinnersanctum:• Whatdoesthismean?• HowdoIgetthere?• HowwillIknow?• HowdoIreactwhensurpriseshappen?
13 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YouandTheChange
WillIthrive?• BeposiGveandstayposiGve• FindwaystodrivecollaboraGon• ShowobjecGvity• FocusanddeterminaGon• Knowwhentohold‘emandwhentofold‘em• Andthroughallthis,getyourdayjobdone
14 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YourCompanyisSelling
• Alltheprepthatneedstohappen• Keepingitquiet—thetruemeaningofanNDA• WheredoIgotoreleasethetension?• TheulGmatesignofmaturity• DoIjumpship?• TRUST!(Competency,Sincerity,Competency)
15 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YourCompanyisBuying
• Devilisinthedetails• IntegraGonspellssuccessvs.failure• Planningisimportant–execuGoniseverything• Buildingadisparateteam• Agreatopportunity
16 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You’reMerging
• Opportunityknocks• CreaGngfinancialgain• Efficiencyiskey• Keepingdifferentcustomershappy• DoIjumpship?
17 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
You’reMerging
• Noroomforduplicateexpenses• Changeswilloccur—theymust!• ThefoundaGonforsuccessfulM&A• Thewholeneedstobemorevaluablethanthesumoftheparts• Keepfocusonthefinancialarm,board,bankorPEfirm
18 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
AlwaysbeatYourBest
• Beateambuilder• Accountable• Beadecisionmaker• Redesignthecompany’sculture
19 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
ManageYourPeople
• Retainthebestpeople• Keepyourteaminformed• KeepproducGvityup• Handleissuesbeforepanicsetsin
20 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
SuccessisONenUptoYou
• Contribute• Demonstrateleadership• Listentopointsofview• Findmiddleground• Noroomforegos• FindsoluGons
21 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
Contribu0ngtoSuccess
• Letgoofyourbeliefs• Beamagicperson• Buildateam• Getpeopleonthesamepage• Breakdownthefiefdoms!
22 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
YourLeadershipWillShapetheFuture
• Growthornogrowth• Branding• ValueProposiGon• Sales• MarkeGng• OperaGons• Finances
23 ©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership
Experience. Knowledge. Expertise. Driving Smarter Mergers & Acquisitions.
THANKYOU
©2013MarxGroupAdvisors-SurvivingAndThrivingDuringAMerger,AcquisiGon,DivesGtureOrOtherChangeInOwnership 24
Visitourwebsiteforar0clesandresources.Ifyouwouldlikeacopyofthispresenta0onorfurtherinforma0ononbuyingorselling,pleasecontactme. TOMMARX
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