merger, acquisition, synergy, time's up, blog, Toby Elwin

Time’s up for merger and acquisition synergy

The mergers and acquisitions world sprinkles potential deals with a bit of pixie dust called synergy. Synergy is neither rational, functional, nor logical.

If HR used the word synergy in an accounting meeting? Laughed out of the room. If HR or human capital used the word synergy in a corporate finance discussion? The time value of money, that is rational. What will it cost? What return will it realize? When will it realize that return? All rational.

Synergy? Synergy is more a pagan fairy than rational way to make a deal.

merger and acquisitions, project management, fail, Toby Elwin, blog

Mergers and acquisitions failures are project management failures

Mergers and acquisitions failures are really business strategy project management failures

No matter the motive for a merger or acquisition the real work comes with integration.

Similar to a project scope statement that identifies the success criteria for a project, the only way to identify success or failure is within the scope of the M&A goals.

Subsequently, the risk in mergers and acquisitions comes down to the ability of a team to deliver within budget, by a certain time, and up to project expectation (scope) and project failure rates for M&A deals are strikingly high.

mergers and acquisitions systems thinking, Toby Elwin, blog

Mergers and acquisitions systems thinking strategies, part 3

Systems thinking strategies for mergers and acquisitions (M&A) provide better integration valuations and post-merger operations. With mergers and acquisitions systems thinking the organization’s view is made of several components that interact with each other while simultaneously act as part of a whole. Systems theory helps explain dynamic interrelationship of several parts, beyond information technology or back office functions. Mergers and Acquisitions Systems Thinking No matter the motive for M&A the real work comes with integration.  A systems view for organizations presents organizations as dynamic entities that continually interact with their environment.  Workforce efficiencies, scale efficiencies, combined technology, and market expansion commonly fall under the synergy tag. Synergy seems like a hollow word, but synergy attempts to describe cost efficiencies that occur when companies consolidate into 1 company through a merger or acquisition.  Post-merger integration is where the components disrupt or combine to create a new …

monkey, board of directors, meeting, Toby Elwin, blog

Mergers and acquisitions systems thinking strategies, part 2

When evaluating merger integration risk the reality is true integration risk identification can only happen with an evaluation of systems integration. Without front-end, due diligence on human capital integration then too often the deal becomes a post-merger write-off. The result: wasted opportunity, multiples on paper only, and “synergies” left back on the deal table or with the executive hand-shake.

Zander, symphony, orchestra, Toby Elwin, blog

Mergers and acquisitions systems thinking strategies, part 1

I transitioned into a human capital focus gradually over my career.  My collected experiences just overwhelmingly led me to realize without commitment, understanding, and ownership you have little hope of individual, team, or organization success. What on earth brought about a mergers and acquisitions systems thinking approach? Well where we are usually has a lot to do with where we’ve been AND not just where we’ve been, but if we noticed. Conduct Becoming of Systems People and motivation began to have impact as early as my conducting studies at Berklee College of Music.  As a conductor you need to create a compelling vision that you rely on others to deliver to. As a conductor I will never be as technically proficient as the first violinist [an interesting piece on the role of the first violinist] or the horn player or harpist. …