Entrada Partners’ Post

We've been talking with a lot of folks going through mergers and acquisitions. If you're feeling undervalued and overworked after your company's recent acquisition, it's time to explore your options.   The post-COVID construction boom has led to a wave of mergers and acquisitions, with larger corporations and private equity firms snapping up smaller companies. While these deals may look great on paper, they often come with unintended consequences for the employees on the ground.   We've been speaking with numerous candidates who have impressive tenure at recently acquired companies, and they're all expressing similar frustrations:   1. Salary compression: Despite increased responsibilities, compensation remains stagnant. 2. Imposed processes: New ownership often pushes their own systems without considering the impact on day-to-day operations. 3. Lack of recognition: Long-tenured employees feel undervalued in the new corporate structure.   If you find yourself in this situation, know that you have options. We're here to help you navigate and explore new opportunities that align with your career goals and values.   On the other hand, if you're a company looking to bring on new talent, now is the perfect time to tap into this pool of experienced and motivated professionals who are ready for a change.   To help both job seekers and hiring managers navigate this complex landscape, we've just released our Quarter 1 Compensation Guide – a comprehensive, 9-page resource specifically designed for the construction industry built from data collected in Q1 of 2024.   If you're interested in receiving a copy of this valuable guide, simply send us a direct message, and I'll be happy to share it with you. . . . #hiring #construction #colorado

Corporate development plays a crucial role in a company's growth and long-term success. But what does it involve? Corporate development professionals lead major strategic initiatives like mergers and acquisitions (M&A), strategic partnerships, and organizational transformations. These efforts are key to driving business growth and increasing shareholder value. Key Points: Strategic Growth: Corporate development focuses on M&A, divestitures, and partnerships to fuel a company’s strategic growth. Essential Skills: Success in this field requires both technical and interpersonal skills, including financial modeling, negotiation, and communication. Career Opportunities: A career in corporate development is dynamic and rewarding, with roles ranging from entry-level analysts to senior positions like VP. The field also offers significant earning potential through bonuses and stock options. Whether you’re considering a career in corporate development or want to understand its impact on your business, this guide offers valuable insights. #CorporateDevelopment #Growth #Career

Kostas Katsohirakis, Vice President, Corporate Development Integration & Divestitures at Applied Materials has been appointed to the speaking faculty for the upcoming M&A Conference at Wharton San Francisco, which is hosted by the Transaction Advisors Institute. A few of the questions he will be addressing: - How are the most effective corporate development teams executing divestitures? - Should the M&A team look for imbalances in the portfolio of business lines, or leave this assessment to the CEO and the Board? - Are there insights from the wave of activist campaigns that are pushing for divestitures? - How should deal teams confidently consider spin-offs, carve-outs, and sales? - What is the key to running a proactive and well-considered separation? We're going to talk about what's new, what's different, and what's clever so we can help our members improve their M&A process and the performance of future acquisitions. 🔗See the full agenda: https://hubs.ly/Q02nyzGx0 #mergersacquisitionsdivestitures #mergersandacquisitions #corporatedevelopment

The Darker Side of Mergers and Acquisitions – Impact on Employees While mergers and acquisitions (M&As) can bring significant benefits, they always pose high risks, particularly for employees and the corporate culture. According to American Express, poor employee management can undermine a company, regardless of the new assets acquired or cost savings achieved through the merger or acquisition. When employees witness their colleagues and opinion leaders being laid off, sometimes using abrupt means, they often experience, for a long period, a feeling of deep fear and uncertainty. This mindset can lead to a survival mode mentality, where the primary focus is on job security rather than productivity or quality. Instead of achieving synergies, the merging organizations might end up competing against each other. The integration of two corporate cultures can be challenging and may slow down business operations. Frustration can arise from new role definitions and boundaries, and claims of unfair processes may increase. The HR team might be viewed as the executioners of these changes [The Guillotine]. Particularly, in the case of takeover, there is a definite losing party with very low expectations. In times of uncertainty, CEOs and Chief Officers need to play a crucial role in calming the workforce down and managing their fears. Transparency is essential to dispel doubts and ensure that no single culture dominates the other. This approach is vital to maintaining employee morale. While M&As can offer near-certain benefits for organizations, the impact on employees is often less positive. However, there can be some silver linings to this uncertainty. Employees might take the opportunity to learn new skills or pursue further education, helping them regain control over their future. Share your comments/views: Info@FutureWaveconsult.com #M&A #Leadership #Employee_Morale #Human_Resources

The third way a business can grow, in addition to New Markets + Existing Relationships, is: Mergers + Acquisitions Here’s a few different ways that can look, and notice how there are some overlaps to what we have been discussing already this week (click on my profile and go to recent posts if you missed those) 📊 Market Consolidation: Acquiring or merging with competitors to consolidate the market, reduce competition, and increase market share. This strategy can lead to enhanced scale, efficiencies, and profitability. 🎨 Diversification Acquiring companies in different but related industries or sectors to reduce dependence on a single market. This helps in spreading risk and leveraging cross-industry synergies. ↕️ Vertical Integration Purchasing suppliers or distributors to control more of the supply chain. This can lead to cost savings, improved supply chain reliability, and better control over product quality and distribution. 🌎 Access to New Markets Using acquisitions to enter new geographic or demographic markets rapidly, leveraging the existing networks, brand recognition, and customer base of the acquired company. 👨🏽💻 Acquiring Talent and Technology Purchasing companies to access innovative technologies, products, and skilled personnel. This can be quicker and often more cost-effective than developing the same capabilities in-house. —— As you can see, there are many ways to grow your organization, it’s a matter of evaluating how you’d like to approach each layer, strategically, to accomplish your overall objectives! #strategist

**🌟 Embracing New Opportunities in Mergers & Acquisitions and Corporate Restructuring 🌟** With over 25 years of experience in Business Development roles across MNCs and large corporates, I have had the privilege of driving growth, fostering strategic partnerships, and leading high-impact projects. My journey has been one of continuous learning, adapting to market dynamics, and delivering value to stakeholders. Now, as I advance my career, I am eager to channel my expertise into the dynamic fields of Mergers & Acquisitions and Corporate Restructuring. The complexities of these domains—where strategic decision-making meets innovative problem-solving—align perfectly with my passion for business growth and transformation. I am excited to connect with professionals and organizations who are as passionate about M&A and corporate restructuring as I am. Let’s explore how my experience in business development, combined with my ongoing focus on legal and financial nuances, can contribute to impactful outcomes. Looking forward to new collaborations and opportunities in this exciting phase of my career! #BusinessDevelopment #MandA #CorporateRestructuring #Leadership #Growth #StrategicPartnerships #CareerGrowth

In the realm of mergers and acquisitions (M&A), company culture often takes a backseat to financial metrics and strategic alignment. However, overlooking cultural compatibility can lead to significant challenges down the road. When two organizations with distinct cultures merge, the clash can disrupt operations, lower employee morale, and ultimately impact the bottom line. Research shows that cultural integration is one of the top reasons why M&A deals fail. Proper due diligence should include a thorough assessment of cultural fit and potential integration challenges. Post-merger integration plans should prioritize cultural alignment alongside operational synergies. Don't underestimate the power of culture in shaping your organization's future success. At #SloanGroup, we can partner with you on pre- and post-merger integration. More insights on this topic can be found in Chris Cancialosi's article on Forbes: #MergersAndAcquisitions #CultureIntegration

Acquisitions Aren't Just About Numbers: People Power Your Growth. Acquiring companies isn't just about numbers; it's about the people behind the success. Here's why: 🌟 Talent is your greatest asset: Identify and retain top performers during acquisitions. 🤝 Company culture matters: Create an inclusive environment that welcomes new talent. 📈 Invest in your team: Nurture and develop your employees for long-term success. Remember that a successful acquisition is about more than just financial gain. It's about building a stronger, more dynamic team.

📉 Why Do Acquisitions Fail? Key Factors to Consider 📉 Mergers and acquisitions (M&A) can promise growth, innovation, and new market opportunities. However, many acquisitions fail to deliver expected results. Here's why: 1.    Integration Difficulties: Merging operations, systems, and cultures can be a complex and time-consuming process. Without a clear integration plan, synergies may never materialize. 2.    Inadequate Evaluation of Target: Proper due diligence is crucial. Overlooking hidden liabilities or overestimating the target’s value can lead to costly mistakes. 3.    Large or Extraordinary Debt: Financing acquisitions with significant debt can strain the combined company’s financial health, making it difficult to invest in growth or innovation. 4.    Inability to Achieve Synergy: Synergy is often the main rationale for acquisitions, but achieving it can be elusive. Misaligned goals or poor execution can hinder potential benefits. 5.    Too Much Diversification: Acquiring companies outside of core competencies can dilute focus and resources, making it challenging to manage diverse operations effectively. 6.    Managers Overly Focused on Acquisition: When management prioritizes M&A over running day-to-day operations, it can negatively impact business performance and strategic direction. 7.    Too Large an Acquisition: Bigger isn't always better. Large acquisitions can overwhelm the acquiring company, making integration more difficult and risky. 8.    Difficult to Integrate Different Organizational Cultures: Cultural clashes between merging companies can lead to internal conflict, reduced collaboration, and lower employee morale. 9.    Reduced Employee Morale Due to Layoffs and Relocations: Workforce reductions and relocations often accompany acquisitions, leading to uncertainty and decreased morale among employees, which can impact productivity and retention. Successful acquisitions require careful planning, thorough due diligence, and a focus on integrating cultures and operations. Understanding these common pitfalls can help businesses navigate the complexities of M&A and increase their chances of success. #MergersAndAcquisitions #BusinessStrategy #Leadership #CorporateGrowth #IntegrationChallenges #EmployeeEngagement #Synergy #CorporateCulture #FinancialHealth #BusinessRisk