Wednesday, 22 April 2009

Flash, Burn & Crash!

Acquisitions, like moths to a naked flame!

Too much to do, too much information to absorb and so too little time in which to do it! How many senior managers have spare time and would relish yet another time absorbing project to be dumped on their desk?

The real answer is actually, quite a high percentage - if you mention the magic word “acquisition”. Talk of acquisitions will attract the attention of company managers like a moths to a flame. In the same way that a naked flame can be deadly for the moth so too, can time consuming, attention grabbing acquisitions prove to be just as deadly for senior executives.

Add on the extra work of an acquisition and many top managers will be spreading their time too thinly. Acquisitions have almost a magical quality to attract attention and use up management time which results in them neglecting their core business.

The problem of lack of time has never been so acute a problem as it is today; the business world and the rate of change, moves at an ever increasing pace. Senior managers must, more than ever, keep their eye firmly on the ball when it comes to managing their business. This is not a recessional issue and as a consequence it will not go away. In fact, it will become more and more of an issue. The old saying that, “The only thing that is constant is change”, is so true but, with the ever increasing pace of change, we now have a new dynamic. The business landscape now changes faster and more often than at any time in the history of mankind. If you don’t believe me then watch this video. I am sure that, as I did, you will find it thought provoking.

If management is allowed to become defocused from the core business, it is, in effect, throttling back on the engine that drives a company forward. More than ever before this will have a negative effect on personal effectiveness and company results.

Buying the competition, adding new vertical expertise, market share, technology, expertise, global spread, increased revenue / profit or an established brand name could all pay dividends, especially when the recession cycle has ended and the economy picks up again, as it inevitably will. The real question is how do you make the acquisition work? Loss of revenue momentum is one reason why so many mergers fail to create value for shareholders. Just as importantly, how do you make the acquisition work, whilst battling current economic challenges and without harming your existing business?

In a time of global opportunities, fast paced technological developments and an ever faster-changing economic landscape, perhaps, if I may be so bold to suggest, you need an M&A partner who will not defocus your company management time and perhaps bring you the previously unknown and the pleasantly unexpected from what was previously the unattainable.

If you would like to discuss acquisition strategy or possible opportunities in this sector, please contact me direct for any of the regions we cover - North America, Continental Europe, United Kingdom or Asia Pac, via email mark at

No comments:

Post a Comment