Your browser does not support JavaScript! "Managing Services Acquisitions by Michael Poehner"
Modo de Proceder
The Insight Group Article

Managing Services Acquisitions:
5 Key Elements for Success

July 2015

by Michael Poehner, Managing Partner, The Insight Group

Insight Acquisition ManagementThe cost of mismanaging acquisitions is very high and is well recognized. Yet, poorly managed processes pre and post acquisition are all too common, with greater than 50% of mergers & acquisitions in the U.S. ending in failure and a larger percentage having disappointing financial results.

The Cost

The statistics regarding M&A failure are staggering whether they come from Mercer, “BusinessWeek”, Pritchett, HBR, McKinsey, AMA etc.; they are universally poor and vary only as to how poor:

  • 50 - 60% eroded shareholder wealth
  • 70 - 80% failed to meet expectations
  • Synergies are realized in only 30 - 40% of deals
  • Companies that pay solely with stock show the worst results

The Challenge

Services companies and services segments of product companies provide unique challenges in that the majority of the value in the company is embodied in the intellectual capital and client relationships of the employees. Consequently, resistance to change, morale issues, business process reconstruction and competitive raiding are real issues, which can sink the integration process.

Most companies view acquisitions and mergers as onetime events managed with heroic effort and something to quickly get finished, so everybody can get back to business…their real jobs. The executives need to view acquisition integration as a manageable process, not a unique event. Few companies go through this acquisition process often enough to develop a pattern for success.

The Solution: Best Practices

To increase the prospect of success, executives and the entire leadership team must:

  1. View acquisition integration as a manageable process, not a unique event.
  2. Choose the right leadership
  3. Establish a well-defined and well-communicated plan to which the management team is fully aligned; recognizing challenges and taking quick actions
  4. Provide open, direct communications, while seeking employee feedback
  5. Take an Employee perspective; they understand there will be change—they want to understand how they are affected. Change should be positive and benefit the day-to-day activities of the employee.

INSIGHT’s Unique Value - The consultants at INSIGHT each have in-depth, direct experience with Services acquisitions, having led companies or business units acquiring and/or being acquired; having worked with the processes of due diligence, integration and general management; having worked issues involving culture, leadership and human capital. Additionally, INSIGHT's proven end-to-end “Best Practice” methodologies--developed over 10 years--will help the executive team of any corporation achieve the synergy and growth potential envisioned for the acquisition.

If you would like more information on managing services acquisitions, contact Michael Poehner ( )

Michael Poehner - The Insight Group Email Michael Poehner View Michael Poehner's LinkedIn profile

Michael Poehner has extensive experience in business strategy development, market coverage strategies, sales management/marketing, Partnering Programs and acquisition & mergers. He led 5 acquisitions as part of the DMR growth strategy, including DMR Canada, ICL consulting UK,and Trecom in the USA. Michael had a distinguished 35-year career in the Technology and Services Business. He has held President/CEO and Senior Executive positions in a number of major Information Technology and Services Companies.

More on Michael at INSIGHT

The INSIGHT Group is a management consulting firm dedicated to assisting product-based companies implement high growth services and solutions business plans and strategies. We help clients design and execute broad transformational initiatives including go to market strategies as they extend their product portfolio to include delivering capabilities as a service. Our partners are experienced line executives with a proven track record of helping our clients transform from a product-focused company to services and solutions led company.

client photo team photo alliance partner photo
Meet our Clients Meet our Thought Leaders Meet our AlliancePartners

Insight Group News

Profiting from Services co-authored by Insight's Stephen Brown

Profiting from Services

Insight Group Articles

Monetizing Data and Analytics

by Rich Lechner. Read this article

A Business Model Revolution is Underway... How Long Can Your Product Business Successfully Compete?

by Tom Esposito & Peter Lyons. Read this article

Cultural Challenge Series

by Tom Esposito and Peter Lyons (et al).

Why Service-Solutions is a Really Big Deal

by Ed Petrozelli. Read this article

Beyond Products: Innovating & Diversifying in Healthcare

by Maryann Ciampa. Read this article

Company Culture and Leadership Development: Keys for Transformation

by Bob Giacometti and Peter Lyons. Read this article

Managing Intellectual Capital for Services

by Tom Esposito. Read this article

Aligning Business Model & Culture to Maximize the Analytics Opportunity

by Ed Petrozelli. Read this article

Account Planning: The Cornerstone of Strategic Account Management

by Mike Byrnes and Gus Maikish. Read this article

Managing Services Acquisitions: 5 Key Elements for Success

by Michael Poehner. Read this article

Six Keys to Success in Services: HR's New Role

by Bob Giacometti. Read this article

Selling Value-Added Services: What's working, What's not

by Mike Byrnes & Ed Petrozelli. Read this article

Transforming into a Customer Solutions Business

by Tom Esposito & Peter Lyons

Part 1: A Changing Business Landscape

Part II: Operating the Services / Solutions Business Model

The Role of Culture as Businesses Shift from Products to Services/Solutions

by Mike Byrnes & Ed Petrozelli.

Part 1: Key Challenges
Part 2: Key Success Factors

Collaborative Leadership: The Top 10 Traits of Collaborative Leaders

by Bob Giacometti. Read this article

10 Keys to Leading a Strategic Account in the New World of Providing Value-Added Solutions & Services

by Gus Maikish & Mike Byrnes. Read this article