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| Mergers & takeovers |
| The Eur'Egide point-of-view |
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" Go ahead and merge…
something good will always come out of it" |
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The size and number of merger operations (€ 3.8bn worldwide in the year 2000, more than 10 000 operations
ongoing at the beginning of 2002 in Europe alone) shows that this slogan is winning widespread support, that it is not simply a passing fad.
The globalization of markets, the acceleration of the construction of a unified Europe, the refocusing of companies on
their core activities, are all essential contributing factors to the coming together of companies. However, if we take a closer,
more objective look, what is the real situation two to three years after a merger operation ? Experience and statistics clearly
show that more than half of all mergers have failed to deliver the expected profits, and therefore in terms of added value, in a range of different areas.
Mais, si l'on examine avec attention et le recul nécessaire
; que reste-t-il deux à trois ans après que ces fusions
aient été réalisées ? L'expérience et les statistiques indiquent sans ambiguïté
que plus de la moitié d'entre elles n'a pas apporté
les bénéfices attendus dans divers domaines et
donc la valeur ajoutée espérée.
This statement of fact is by no means a surprise to Eur'Egide. Our experience in the mobilization of Human Resources and in the deployment of strategic decisions has shown us that the vast majority of merger operations fail to address these essential success factors.
Let's begin by taking a closer look at the definition of the term " fusion " (i.e. " merger " in French) : "uniting or becoming united by melting,
becoming liquid, joining or becoming combined". This clearly goes against the idea of the disappearance of the culture and know-how of
one entity, caused by another, more powerful, " activist " entity.
 The key to success is the
creation of a " new entity " which capitalizes on the strengths of each of the merged companies and reduces their weaknesses. Anyone
who has talent, energy and loyalty will find the opportunity to express their qualities in the new structure.These qualities will be put to the
common good of the new company, and also to that of its partners.
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Special attention paid to project deployment |
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In order to mobilize the new team, born out of the merger, is it sufficient to send out memos, to make speeches and to
hand out instructions ? No way - that is a widespread, but ultimately utopian view which we can rapidly give the lie to.
So - what is to be done to ensure a successful merger, with minimum risk and maximum added value ?
Eur'Egide believes that the birth of a totally new, unified entity requires the following :
- the emergence of a new Management Model, blending
language and processes, combining the best management rules and practices shared by the new team.
- the setting-up of a new, balanced Management Team,
with a range of technical and managerial competencies, with each member of the team playing an active driving role.
- successful project deployment, by a positive mobilization of all
company relays positioned in formal and/or informal networks.
It goes without saying that this organization requires specialist
coaching of the teams involved in such a multi-dimensional system.
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Energ'Ethic Merger solutions |
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We here at Eur'Egide believe that deployment is worthy of greater consideration when drawing up a merger project.
Thanks to the Energ'Ethic concept, this higher plane can be reached.
The concept is totally in line with current sociological aspirations, aiming to increase the intensity of team mobilization, within a vision of sustainable development.
It is for this reason that Eur'Egide today integrates into all of its missions and tools the major trends in terms
of ethics and respect for the environment. This is seen as a major priority - made available to all sources of operational energy within the company.
The dedicated Energ'Ethic merger solutions constitute, without doubt, one of the most far-reaching approaches, bringing a new
dimension to merger operations, guaranteeing secure success and greater added-value.
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