Enabling Growth by Acquisition - Aventri€¦ · Avnet Overview •Founded in 1921 •50 years on...
Transcript of Enabling Growth by Acquisition - Aventri€¦ · Avnet Overview •Founded in 1921 •50 years on...
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Enabling Growth by Acquisition:
Creating an M&A Playbook for IT
Steve Phillips
Chief Information Officer
Avnet, Inc.
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Avnet Overview
• Founded in 1921
• 50 years on the NYSE
• #142 on the 2010 Fortune 500
• #1 Fortune’s Most Admired 2009 & 2010
- Technology Distribution
• FY’10 Annual Revenue - $19.2B
• 300+ locations in over 70 countries
• ~300 suppliers/100,000 customers
• 65+ acquisitions since 1991
• 16,000+ employees worldwide
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Avnet from an IT perspective
• Global team
• 650 full time
IT staff
• 150 contractors
• 9 major IT
locations
across world
• Mature industry with
low margins
• IT more than a utility
• Must create value
• Operational
reliability is key
• IT leaders: business
first, tech second
• 1,340 servers
• 350 software
applications
• 70% supplier / 38%
customer orders
are electronic
• Average of 1,850
daily attempts to
breach security
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6Acquisitions
in
20093More
acquisitions
in
2010
Most integrate in
<90days
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The Avnet M&A “Playbook”
PlansTemplates
Checklists
Processes &
Procedures
Teamwork
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Document your
tribal knowledge
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Ease the pain
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Avoid the deep freeze
Integrate with deliberate speed
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Avoid analysis paralysis
Reference the playbook1
Set an aggressive timetable2
Focus on critical path items3
Push through roadblocks4
Make big decisions quickly5
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Faster integration,
faster returns
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A case study
• April 2005 announcement
• Memec Group Holdings - $2 billion
• Operations in all three regions: Americas, Europe, Asia
• Goal was to complete integration in less than 90 days
• Deliver best practices, but allow regional flexibility
• North America playbook provided framework for Asian
integration
• Memec Americas converted to Avnet systems in just 30
days
• The other regions followed suit <60 days later
• Realized $130 million in synergies
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Thank you.
Steve Phillips
Chief Information Officer
Avnet, Inc.
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