theceomagazine.com | 145Morcos, who is based in the global firm’s Dubai
office, recommends that a CEO quickly gets to grips
with the rationale behind the acquisition and what the
acquiring entity sees as the key value drivers for the
acquisition. “Identify the time frame of the acquiring
entity for realising the value and try to establish if there
is a specific holding period envisaged by the acquirer;
whether, for example, it’s a long-term hold, or a
five-to-six-year exit,” says Morcos. He suggests it is also
a valuable exercise to understand something of the
culture of the acquirer.
As the deal progresses, there is an onus on
developing good relationships with the board of the
acquiring group. “Create quick alignment with the
board by clearly establishing what success looks like in
the short, medium and long term; invest time getting to
know the key members on the board, in particular the
chairman,” says Morcos. “Articulate a clear top–down
story to the integrated top team and agree on the new
culture for the whole organisation,” he adds.
CERTAINTY DURING UNCERTAINTY
Morcos says, as the deal progresses, it is vital for the
CEO to bring certainty to members of their own
organisation at this time of uncertainty. “Key
ingredients are: crystal-clear communication, building
trust between the stakeholders, and demonstrating
early successes,” he stresses. “The CEO also needs to
allay any concerns the board may have of members
from the previous team, so involving key executives
from the acquiring team will always pay off.”
Michael Jenkins, the British Chief Executive of
Roffey Park, a leadership institute based in the UK and
Singapore, also recommends building strong
relationships in the bidco as soon as possible, but
cautions that there may be differences to this approach
in various parts of the world.
Having spent years building up the group’s Asian
business, he says that three key things to bear in mind
in Asia–Pacific are: maintaining harmony and avoiding
conflict; respect for hierarchy and seniority; and
building in sufficient time to get to know each other in a
social or non-work context. He says nuances extend to
how you integrate your business into the wider group.
“Different cultures will react to and approach this
differently; however, in general, it is important to have
selective representation so that the groundwork for
building trust is put in place. A trusted intermediary is
critical in explaining differences of opinion or in helping
the parties to navigate roadblocks,” he advises.
A FRESH START
As ever, with mergers, there are casualties. Preparing
for the possibility that you may not be required by the
new entity makes good sense, warns Jenkins. “The first
thing to do is to test those assumptions by asking a
trusted intermediary. Some Asia–Pacific cultures may
look like they are going to replace the indigenous
management lock, stock and barrel, but in fact end up
doing the opposite, with little or very little
representation by the Asian acquirer,” he says.
If it looks like there is no position likely to be
available, consider staying for as long as possible to
assist with the transition and then use this experience
as a positive factor when putting yourself forward for a
new job, says Jenkins.
Whatever the outcome, he says, it is important to
observe certain protocols, especially when it comes to
marking the start and conclusion of the process.
“These need careful and sensitive attention. The CEO
needs to be ready to meet and greet the overseas
visitors when they come to the company’s premises –
and to ensure that the entire visit is carefully
choreographed so nobody loses face.
“Likewise, when a visit is coming to an end, a proper
farewell is in order: this might include gift-giving; seeing
people personally to their cars; and making
arrangements to ensure that they get back to their
hotels safely or to the airport for the journey home.”WHEN DEALS GO BAD
Leaders who fail to sell their organisation are at
risk the moment a bidder walks away. Adam Bain,
the former COO of Twitter, resigned in November
2016 after failing to find an acquirer for the tech
giant – a task he was charged with.
The group sought to find a buyer after its
stock price plunged to below US$18 from a peak
of US$69 in 2014, after going public at US$26 in
2013, and user growth stagnated at around 300
million compared with Facebook’s 1.7 billion users.
Several suitors including Salesforce.com, Walt
Disney Co. and Google’s Alphabet Inc. circled
Twitter, but in the end all three decided against
pursuing a deal.
Announcing his departure on Twitter,
Bain said, “I am ready to change gears and do
something new outside the company.” He has
since re-emerged, joining the board of sneaker
start-up GOAT.M&As | INVEST