Mergers and Acquisitions

Why do many Mergers and Acquisitions fail or fail to live up to expectations?

You hear it over and over again. People.

“Our culture’s were just so different.”  “We were not a good fit for each other.” “There was no way it could have succeeded, we were just so different.”

Imagine a way to quickly and easily predict how organizational cultures and management teams align before completing the merger.

Abeo is that way.

The Abeo model leverages quick online assessments to identify individual team member motivations and predict how they will behave in the future.

Why Abeo for Mergers and Acquisitions?

Industry research has shown that investors who utilize a structured management team assessment process realize an Internal Rate of Return nearly three times higher than their peers. Top performing investors use a best practices assessment model as opposed to gut feel.

More Benefits
  • Saves time: Assessments provide actionable data quickly. Results are quickly available for use in meetings, interviews and negotiations.
  • Improves performance: Strategic use of assessments results in higher performing companies.
  • Reduces risk: Identify style, motivational and other conflicts before they can cause (severe) damage.
  • Objective:  Removes bias and prejudgment.
  • Crosscheck: Compare against internal assessments and feeling.
  • Validation: High degree of statistical validity and accuracy against benchmarks and industry norms.
  • Jump-start: Developmental baseline for post closing optimization.

How we do it

The Abeo model evaluates three main areas;
  • Motivation – what drives management to succeed and how to leverage it (it’s not always money)
  • Communication – how to best communicate (negotiate) with differing behavioral styles (this is a two-way street)
  • Competencies – how management’s behavioral competencies align with those required to meet investor objectives
Deployment consists of three phases;
  • Planning
  • Assessing and Ranking
  • Debrief and Development
Several areas are addressed during the planning phase some of which you may already be undertaking,
  • Human Capital requirements
    • Deal specific, what roles are necessary for future success?
  • Key Accountabilities
    • Measurable performance metrics for the company and each role (SMART)
  • Role Benchmarks
    • Hard and soft competencies to be effective per role
  • Balanced Scorecard
    • Alignment with strategic objectives, a composite structured report containing all of the factors to be measured
Assessment and Ranking
Online multi-discipline psychometric assessments (less than 10 minutes per person)
  • behavioral style and emotional intelligence
  • values and motivators

In-person structured behavioral interviews on a team, individual and company basis.

Areas of measurement;
  • Alignment with and ability to meet investor/merger objectives
  • Organizational culture
  • Strengths and Weaknesses – Team and individual
  • Strategic thinking – Founder, CEO and senior executives
  • Problem solving under pressure
  • Operational capability
  • Decision making methodology
  • Management and leadership style

Executive Summary and Detailed Statistical Analysis of the fit.

Future development

The process establishes an objective baseline. Areas of development are identified and a development plan can then be created to address any issues and maximize the future performance of management and the company.