Mergers & Acquisitions
Whether you’re on the buy or sell-side -
What happens when an MSP partner or strategic vendor is engaged in an M&A?
M&A is either a success or failure filled with a spectrum of emotions. Contemplate success from a position of right and wrong, not financial gain or power. What is the truth? Financial gain (a.k.a. “everybody benefits”) is the output of a successful M&A. M&A failure is often the result when only a select few benefit.
M&A success has proven very difficult, with many executives admitting >50% of acquisitions were unsuccessful.
Why? An ill-advised consideration of their clients, ironically, who is their primary revenue source. When the M&A project team excludes operations, the risk of failure is high… moreover, although the financials are advantageous, the project sometimes lacks moral ethics for the greater good, including longevity of the client relationship.
You don’t know what you don’t know
Competitors (sharks) begin calling (circling)
Conflicting priorities between parties
Disruption - client, vendor, and MSP services
Lack of leadership direction and strategy
Lack of project planning methodology
Lack of resource capacity planning
Merge of corporate cultures
Proactive Risk Mitigation
Confirm Service Level Agreement (SLA) commitments
Require a performance guarantee with penalties to minimize client disruption
Client/MSP team skip-level meetings
HR: Identify TUPE or similar options for the team
Confirm contract termination obligations
Confirm contract assignment options
Confirm exit strategy
Require a detailed project plan
Require a communication cadence