Acquisitions: The perfect union
4. Integrated marketing
All material: press releases, brochures, credentials, websites, and so on must flag the new acquisition, embracing it as much as possible. This is a quick win. It needs to be a priority.
5. Internal familiarisation
Executives in the companies need to know each other’s people and services/products. This can be done quickly, for example via an email newsletter, but with the aim of developing an intranet. The idea is that newcomers feel part of your family.
6. Movement of people
The movement of people between offices is an essential part of creating a common culture. There is no better way for your executives to understand each other’s perspective.
7. Shared services
Here, you are looking for services that have been developed by each company to see which ones may be suitable for introducing into the other. An integrated team (‘their’ people and ‘yours’) must be put together to do this.
You may also look to this team to propose new services drawing on the best of each company.
8. Shared processes
What can you learn from each other to make your businesses more efficient? Again, this is a task for an integrated team.
9. Shared pitches
The vast majority of acquisitions are done in order to be more competitive in their marketplace; to attract more business.
In that case, if the action is taken as above, then you will be ready to pitch for more and/or bigger clients. This is great team-building; winning, and even losing, together.
10. Shared clients and projects
At this stage, any additional business that can be won from existing clients by working together has a totally disproportionate benefit; morale leaps and newcomers quickly become an accepted part of the team.
11. Shared rewards
Bonuses and other rewards need to be integrated and, even though the absolute numbers may be different, the principal and pro rata benefit should be the same. However, an extra bonus should be paid to those who successfully cross-sell across group companies.
When we were building CIA, middle-junior staff had bonus schemes entirely based on the success of their employing company; middle-senior had bonuses on the basis of 50 per cent local and 50
per cent global performance. Any international staff received 100 per cent bonuses on the results of the group.
This will send out a very clear message to all your execs: ‘Think “group” and
help each other if you really want to get on here.’
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Chris Ingram has considerable experience of building and managing rapid-growth firms and is widely regarded as the inventor of the modern media agency. He started CIA in 1976 with three people and £10,000. It grew into Tempus Group and was sold to WPP for more than £430 million in 2001. In 2002 he launched Genesis Investments, a private equity business, and in 2003 The Ingram Partnership, a strategic brand building and communications consultancy. Email him on info@businessxl.co.uk.