CEO to CEO

M&A and the Mid-Market CEO: Survey Presented at BLC Forum

Survey of Alliance CEOs shows M&A is now on their front burner but it’s easy to get burned. Presented at the Business Leadership Council’s Forum discussion on M&A, February 28, 2012. By Robert Sher

Slide Deck is attached. Download M&A Survey Graphs-BLC

Inside a Merger that Worked

By Robert Sher

Two companies merge to gain economies of scale and to create an industry leader. How many times have we heard this story only to be disappointed by the results? Where 2+2 equaled 3?

But not so with Oclaro (NASDAQ: OCLR), formed when CEO Alain Couder merged $300M Bookham (NASDAQ:BKHM) with $200M Avanex (NASDAQ: AVNX) in April of 2009. Today, the combined company’s stock price is up nearly four times from April of last year. Adjusted EBITDA is at 10.5%, growth is at 35% and the company is focused on a goal of hitting the $1 billion revenue mark within two years. So what did Alain and his executive team do differently to make this merger work so well?

M&A and Partnering Mistakes

By Robert Sher

Which causes more insomnia in the world of CEOs? Concern about sneak attack distractions or the “clobber you on the head” type of distractions? Personally, I have no idea, but the “clobber you on the head” versions sure are memorable. This distraction, M&A and Partnering Mistakes is definitely of the clobber variety. To this day, about ten years later I remember trying to be on vacation in Tahoe but having to deal with the acquisition I should have never, ever made. This issue of The Insomnia Factor will cover this second of twelve distractions to be addressed. To access the entire series written to date, click here.

M&A is an essential element in strategic planning and should be considered by every company. Likewise, connecting with other companies in some form of partnership can be a great lever to grow dramatically while staying focused on your core competency. The thinking, courting, hunting and closing on deals and high potential partners is fun and alluring too. Until you make a mistake.

Global Expansion Strategy Viable For Many

By Robert Sher

Many CEOs will take a deep breath before even thinking about putting down a permanent footprint overseas. For years, global operations have been the province of the large firm, but this is changing. Alliance member Raju Reddy, CEO of Sierra Atlantic, stepped into China in August of 2007 without any major hiccups, and in two years has doubled the size of his China team, supporting global sales. Moreover, he is generating significant revenues from sales within China. Sierra Atlantic was only a $56 million revenue firm at that time.

When to Start Selling Your Business

Summary: Many CEOs don’t start thinking about selling their business until it’s too late, but they can avoid an unhappy ending by planning ahead. The article describes how.

Jackpot Fever

Summary: This essay covers the basics of what you should do when a buyer for your business calls and shows legitimate interest in buying.

Book: The Feel of the Deal; How I Built a Company through Acquisitions

Businesses are bought and sold every day, yet only a small minority of executives has ever personally led the purchase or sale of a business. This book allows the reader to experience the thoughts, analysis and actions of a CEO as he goes through an acquisition. Read more about the book, including sample chapters. The Feel of the Deal is an entertaining story of the author’s business acquisition and gives the reader a rare opportunity to get inside the head and heart of the CEO. Robert Sher opens up his thoughts and feelings during the four-year acquisitions journey. His book is a new kind of how-to business guide—the inside story, fun to read, and easy to implement. Following the story, 15 essays reframe the usable lessons in plain talk. An educational read for anyone interested in or doing business.

The Benefits of Leading in Industry Organizations

Summary: Getting involved in industry organizations as a volunteer/leader pays big dividends for only a small amount of time and energy. Read about specific benefits as well as a few words of caution.

M&A Interview of Robert Sher

Hear Steve Bengstrom of PriceWaterhouseCoopers interview author Robert Sher on the PriceWaterhouseCoopers Start Up Show. Steve had some interesting questions based on his review of The Feel of the Deal; how I Built a Company through Acquisitions. Available in audio only (click here).

The Human Side of Mergers and Acquisitions

Summary: When doing deals, treating people well has a big payoff. Placing emphasis on the people behind the deal will help ensure better results for everybody.