As CEO, how do you increase shareholder value?
Companies undertaking large M&A deals follow four key practices that help their total returns to shareholders (TRS) outpace the market index, their synergy achievement to exceed public commitments, and organic growth to continue unabated.
Protect business momentum
- Don’t disrupt existing business – protect base at all costs
- View the integration from the eyes of the most important stakeholders
- Plan integration beyond a functional view
- Balance and pace the amount of change
Accelerate synergies and integration
- Track synergies from execution to financial statements
- Ensure line leaders own the synergies
- Build synergy targets into operating budgets
Institutionalise new ways of working
- Dedicate resources to culture and change management
- Make new behaviours non negotiable
- Change critical processes aligned to deal value
Catalyse the transformation
- Dedicate significant management focus for a multi-year duration
- Select, expand, and build new capabilities
- Plan the transformation in waves, determine what you need to achieve at each stage
Applying these four practices can help companies achieve positive investor, customer, and employee response, as well as superior shareholder returns and a strong foundation for long-term growth.
Based in London and with over 24 years’ global experience, Karen Thomas-Bland is often cited as one of the top M&A integration consultants and coaches in the world. She is a trusted advisor to boards, executive teams and investors, creating sustainable, long-term value for FTSE/Fortune businesses and PE funds. She writes for many publications including The Times, FT, Association of MBAs and Management Today.