WEBVTT 0559fc59-28f8-4d94-8338-3e3455c5d2e6-0 00:00:04.840 --> 00:00:07.960 In high-growth industries, deals focus mainly on accelerating 0559fc59-28f8-4d94-8338-3e3455c5d2e6-1 00:00:07.960 --> 00:00:09.320 growth through integration. e28c0f6d-8045-4c85-b603-8db73cf5f298-0 00:00:09.760 --> 00:00:12.646 In these industries, cost synergies are fine as long as e28c0f6d-8045-4c85-b603-8db73cf5f298-1 00:00:12.646 --> 00:00:15.791 they don't pose any risk on disrupting the business goals of e28c0f6d-8045-4c85-b603-8db73cf5f298-2 00:00:15.791 --> 00:00:17.080 the newly acquired asset. 04efe6ea-3cb7-4311-979b-97594f4c5f14-0 00:00:25.440 --> 00:00:28.912 We enable our clients to drive growth through post-merger 04efe6ea-3cb7-4311-979b-97594f4c5f14-1 00:00:28.912 --> 00:00:32.265 integrations by focusing on three core strategic levers 04efe6ea-3cb7-4311-979b-97594f4c5f14-2 00:00:32.265 --> 00:00:34.960 Number 1, unlock the go-to-market potential. 951a04f4-54e1-4e6f-8cbd-f6f2a00bce4b-0 00:00:35.200 --> 00:00:38.901 The most successful integrations identify cross-sell and up-sell 951a04f4-54e1-4e6f-8cbd-f6f2a00bce4b-1 00:00:38.901 --> 00:00:42.203 opportunities using the value proposition of the expanded 951a04f4-54e1-4e6f-8cbd-f6f2a00bce4b-2 00:00:42.203 --> 00:00:44.880 product portfolio to target customer segments. 37b4db35-388e-47c9-a37a-1cee72e05da1-0 00:00:45.000 --> 00:00:48.122 With strategic deployment of clean teams, organizations can 37b4db35-388e-47c9-a37a-1cee72e05da1-1 00:00:48.122 --> 00:00:50.880 tackle go-to-market work during the pre-close period e2140bb8-65f0-423c-96f5-e4a3396f703b-0 00:00:51.080 --> 00:00:54.515 so they can build momentum with customers immediately after the e2140bb8-65f0-423c-96f5-e4a3396f703b-1 00:00:54.515 --> 00:00:55.160 deal closes. e6806ef1-c8a6-4117-a5d6-9457edadf803-0 00:00:55.520 --> 00:00:58.805 Companies can also invest in go-to-market capabilities that e6806ef1-c8a6-4117-a5d6-9457edadf803-1 00:00:58.805 --> 00:01:01.982 enable growth such as e-commerce platforms and R&D on e6806ef1-c8a6-4117-a5d6-9457edadf803-2 00:01:01.982 --> 00:01:03.679 high-priority product road map. 9cb1c365-0bee-4d9d-8fea-669ed7350a1b-0 00:01:03.680 --> 00:01:03.920 3059d8e7-6bdf-41b3-ae2a-9e45845e5eca-0 00:01:03.920 --> 00:01:08.609 Number 2 boldly address operating model issues even in 3059d8e7-6bdf-41b3-ae2a-9e45845e5eca-1 00:01:08.609 --> 00:01:10.400 limited integrations. 8be54213-20b8-4864-89ee-115d8038f6d0-0 00:01:10.560 --> 00:01:13.856 It's natural for leaders to try to avoid any disruptions to the 8be54213-20b8-4864-89ee-115d8038f6d0-1 00:01:13.856 --> 00:01:14.680 target business. aba3836f-6af3-4072-95d1-29127e469470-0 00:01:15.080 --> 00:01:17.663 But even with limited integration of high-growth aba3836f-6af3-4072-95d1-29127e469470-1 00:01:17.663 --> 00:01:20.984 assets, leaders should be clear about what the final operating aba3836f-6af3-4072-95d1-29127e469470-2 00:01:20.984 --> 00:01:23.778 model will be, how much integration will happen, and aba3836f-6af3-4072-95d1-29127e469470-3 00:01:23.778 --> 00:01:25.360 when those changes will occur. 2aa3cdec-3442-475c-a1b4-e9b807e2f20d-0 00:01:25.760 --> 00:01:28.517 In our experience, the most successful high-growth 2aa3cdec-3442-475c-a1b4-e9b807e2f20d-1 00:01:28.517 --> 00:01:31.815 integrations are those that grapple with important operating 2aa3cdec-3442-475c-a1b4-e9b807e2f20d-2 00:01:31.815 --> 00:01:32.680 model questions. bffb79e2-3e1a-436e-96a3-301af4c31b5a-0 00:01:33.000 --> 00:01:36.304 For example, what is the right sequence and pace for the bffb79e2-3e1a-436e-96a3-301af4c31b5a-1 00:01:36.304 --> 00:01:37.000 integration? ace6ee69-b6db-4659-b02a-d454f69ae0c2-0 00:01:37.280 --> 00:01:40.184 Here we often see high-growth PMIs integrate corporate ace6ee69-b6db-4659-b02a-d454f69ae0c2-1 00:01:40.184 --> 00:01:43.300 functions first to capture low-risk synergies while taking ace6ee69-b6db-4659-b02a-d454f69ae0c2-2 00:01:43.300 --> 00:01:46.310 a more measured approach to parts of the target business ace6ee69-b6db-4659-b02a-d454f69ae0c2-3 00:01:46.310 --> 00:01:48.000 that are closer to the customer. 98a27020-3fb2-482b-b48f-745541f7a121-0 00:01:48.480 --> 00:01:51.704 It's also important to consider how to collaborate across legacy 98a27020-3fb2-482b-b48f-745541f7a121-1 00:01:51.704 --> 00:01:54.581 businesses in commercial and operational functions before 98a27020-3fb2-482b-b48f-745541f7a121-2 00:01:54.581 --> 00:01:57.657 full integration. And if there are parts of the business that 98a27020-3fb2-482b-b48f-745541f7a121-3 00:01:57.657 --> 00:01:58.600 will not integrate. 6d9cb74d-fd90-44d3-893f-0c90ba8be890-0 00:01:58.720 --> 00:02:01.851 what are the right messages to send to employees and customers 6d9cb74d-fd90-44d3-893f-0c90ba8be890-1 00:02:01.851 --> 00:02:03.840 about the long term integration vision? 34991016-1e53-460a-9624-c9e6314c3f07-0 00:02:04.240 --> 00:02:07.531 The third main strategic lever in high-growth PMI involves 34991016-1e53-460a-9624-c9e6314c3f07-1 00:02:07.531 --> 00:02:08.480 talent retention. 3edbddba-26f8-4d5f-a96f-0b16bcaaa26f-0 00:02:08.840 --> 00:02:11.857 In high-growth merger situations, key talent is often 3edbddba-26f8-4d5f-a96f-0b16bcaaa26f-1 00:02:11.857 --> 00:02:15.265 in demand, but retaining this talent is essential to keeping 3edbddba-26f8-4d5f-a96f-0b16bcaaa26f-2 00:02:15.265 --> 00:02:16.160 growth on track. 87ae4cd4-9b76-489b-a07e-0a96abea8ce7-0 00:02:16.480 --> 00:02:19.798 We see successful integrations use two main approaches to 87ae4cd4-9b76-489b-a07e-0a96abea8ce7-1 00:02:19.798 --> 00:02:21.400 minimize unwanted attrition. 5c8e8e4b-3389-46b1-839d-0a91af3085df-0 00:02:21.560 --> 00:02:25.162 First, they proactively look at similarities and differences in 5c8e8e4b-3389-46b1-839d-0a91af3085df-1 00:02:25.162 --> 00:02:28.314 the corporate cultures. Instead of trying to create one 5c8e8e4b-3389-46b1-839d-0a91af3085df-2 00:02:28.314 --> 00:02:29.440 homogeneous culture, 03f8378e-d952-41dd-be5e-2ae8b5a926f0-0 00:02:29.520 --> 00:02:32.543 the answer is often to keep the special sauce of both legacy 03f8378e-d952-41dd-be5e-2ae8b5a926f0-1 00:02:32.543 --> 00:02:35.517 cultures while still making employees feel like part of the 03f8378e-d952-41dd-be5e-2ae8b5a926f0-2 00:02:35.517 --> 00:02:36.360 combined company. dfb069fc-b49e-4d2f-b846-88c159cfad0d-0 00:02:36.640 --> 00:02:39.794 Second, they identify core talent and explain the benefits dfb069fc-b49e-4d2f-b846-88c159cfad0d-1 00:02:39.794 --> 00:02:41.720 of being part of a larger company-- 43a81a47-1cc0-4f0f-9564-f30c0c4b6cae-0 00:02:42.200 --> 00:02:45.564 from bigger investments in product portfolios to new career 43a81a47-1cc0-4f0f-9564-f30c0c4b6cae-1 00:02:45.564 --> 00:02:48.591 advancement opportunities. With clear communications, 43a81a47-1cc0-4f0f-9564-f30c0c4b6cae-2 00:02:48.591 --> 00:02:52.179 organizations can reduce talent flight risks and maintain their 43a81a47-1cc0-4f0f-9564-f30c0c4b6cae-3 00:02:52.179 --> 00:02:54.927 high growth trajectory both during and after the 43a81a47-1cc0-4f0f-9564-f30c0c4b6cae-4 00:02:54.927 --> 00:02:55.599 integration.