Hard Way MBA

Chris Hawkins: M&A, Career Mobility, In house vs. Consulting


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Introduction: I’ll ask you to tell us what you do in a sentence or two.
* Director Corp Dev at SunEdison
* Integration of acquired companies in NA
* Setting up global shared services center.
You’ve worked as a consultant at one of the large global consulting firms and ‘in-house’ on M&A with a very fast moving corporate player. Can you compare the two environments?
* 8 - 9 years on PwC on audit side.
* Exposure into non-account work and he saw that he couldn't 'speak the language' of other parts of the business.
* swimming pool - swims the whole pool.
Consulting vs. in-house?
* Mind set is very different. Serving in a client service role objectives are a little different. At the end of the day in house you'll still be here. As a consultant, that might not be the case. Your companies name is attached to it, not your own.
* There's a higher level of accountability building the house that you have to live in.
* Drive of the people in consulting is different. In corporate, you'll see different motivations, not necessarily all on the same page.
Contrast the differences.
* Leading by influence. Getting everyone on the same piece of music. Easier at a consultant.
For the last several years, you’ve been focused on M&A activities. Can you give us some context of the work you’ve done…
* Merger and integration.
* Buys two types of companies - those with people, those without.
* FirstWind Deal - entire company - 250 people
* Projects
* Split between finding deals and integrating them.
* Buying a company isn't easy. Making it work is also difficult. Can't just throw it over the wall and expect them to coexist.
As you’re looking at a possible acquisition, when do you typically get involved?
* doesn't work very well to bring in an integration team too close to the deal being done.
* Should all tie into the valuation model. Need someone who can see the synergies and help with valuation.
* When you bring everyone into the game early and get buy in on a road map for integrating the two entities - cost savings, new business, etc.
For those of us on the outside looking in, give us a sense of the work that’s gone into an acquisition before any news becomes public?
* Typical lifecycle: NDA
* Diligence & preliminary term sheet
* Sign a PSA, purchase and sale agreement
* Sign to close varies
Once your team has settled in on the idea that a specific transaction will go through, what are you looking for within the firm to maximize the value of this acquisition?
* You can either save $ or drive more $
* Cost savings:
* Business A isn't going to do something anymore - may also cost rev.
* Duplicative back office functions
* Complementary supply chains
* Revenue Side:
* Cross-sell or up-sell to current customer lists
* Partnerships
* Technologies each company may have
* Sometimes you're betting on the future of a technology paying
There’s likely a significant value factor – the business model, horizontal / vertical integration, specific book of business. I’d imagine in every transaction, there’s one big value driver. Is that right, or am I missing something?
* Is there a theme associated with it.
* FirstWind: Wanted to get into wind. Directionally, it was about getting into wind. Also sub-components.
The audience for this podcast are ambitious corporate professionals. What one piece of tactical – go implement today – advice do you have for this group?
* Everything needs to drive some kind of value.
* On a macro level that may take months
* On a daily level - you need to know what you're doing that will drive the highest value.
* What is the highest and best use of your time.
What’s your favorite business book?
* Coopitition, Game Theory, 3D negotiations.
* Dale Carnegie, How to Win Friends and Influence People
Tell Chris thank you on LinkedIn.
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