M&A Karls University november 5h 2013 public selection
22
Subtitle: Business Life as Global Adventure Park Subtitle: Capitalism at work hour
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Small extract of a 1.15 min presentation of 20 years professional experience in an with Merger & Acquisitions. By Juergen Lauber see also www.05112103.info
Transcript of M&A Karls University november 5h 2013 public selection
Subtitle: Business Life as Global Adventure Park
Subtitle: Capitalism at work hour
M&A 2
Attention
This is ony a selection of slides from the 75 min presentation and 15 min discussion.
20 key slides have beed deleted in this version
M&A 3
The M&A „food chain“ of my professional life (last 25 years)
Was only Buyer
Was target and buyer
Was only target
M&A 4
Did I look for an M&A Career ?
Not at all !
But .... !
When it happens, make the best of it !
M&A 5
How does M&A work ? What is the process ?
M&A 6
6Giacomini 5.9.2011
1950 1978 1990 2003 20102006
Société Anonyme des
Interrupteurs Automatiques
Sodeco-Saia
The M&A development of a the company „Saia“ after World War II
Owner
2 years
Burgess LtdUK
5 years
Williams Holding
Ltd1 Year MBO
1998 IPOZürich Stock
Exchange
M&A 7
Headquarters and electromechanical products: Micro Switches + Stepper Motors
M&A 8
The Saia-Burgess Group Management 2003
M&A 9
9Giacomini 5.9.2011
1950 1978 1990 2003 20102006
Société Anonyme des
Interrupteurs Automatiques
The M&A history of Saia-Burgess as Buyer
During 8 Year as public company
M&A 10
1998IPO
at 238 Mio CHF
pa
2003 20102006
The Man behind the M&A history of Saia-Burgess Group
Andreas O.
President Of the Board
(Absolute King)
MD / CEO
Strategic Head ex. ABB Manager
CEO
630 Mio CHF Sales
Their main deals !-Bär Electrowerke
- Stegmann Motors - TH Contact - Cetronics
- MICS- Ledex Dormeyer
- CEI Motors- Bühler Motors
- > failed Niles Japan 600 Mio
Started1981 as Marketing
Assistant
Sales growth
M&A 11
1998IPO238 Mio CHF
2003 20102006
The dramatic end of the public „ Saia-Burgess Group
Andreas Ocskay
President Of the Board
(Absolute King)
MD / CEO
Strategic Head ex. ABB Manager
CEO
at 630 Mio CHF Sales
Sales growth
Sold in October2005 for 695 Mio CHF.
Six month earlier the share price value of the company was
only 400 Mio CHF
M&A 12
What happened to „My business“ ? Electronic Control Components & Systems
1950 1978 1990 2003 20102006
Société Anonyme des
Interrupteurs Automatiques
August1999 joined Saia- Burgess as Director of Business Development
MBO Offer for 26 Mio CHF rejected
M&A 13
What happen Saia-Burgess „Electronic Controller / PLC business“ ? No acquistion, only focus own business
Start condition 1997: 35 Mio CHFNo own factory; only shared services
Final condition 2012: Saia-Burgess Controls 80 Mio CHF
1 new Lean Factory
Why and how did Honeywell buy the 80 Mio CHF company Saia-Burgess Controls AG for 123 Mio CHF ?
M&A 14
My first hand experience with it 1995 -1997
1995 – Acquired by an US based big company – Parker Hannifin ( 4 Mrd.$)
230 persons – 35 Mio $
Right after acquistion they sent me to 4 day intensive training on
„Finance for non-finance managers“
=> How to handle the attitude „The only fixed cost for the company is the profit“
M&A 15
How well are the US CEOs doing their job ?
M&A 16
What is the magic behind the super performance of US based big companies ?
- Creative and very liberal accounting ?
- European stupidity in taxation ! They pay no tax for their profits in Europe !
In M&A US companies have huge competetive advantages ?
- Radical and without scruple in relocation into low cost countries !
- M&A is Priority 1 methology to develop business ; Inovation is nice to have !
M&A is like drug addiction
Once you start , difficult to stop
M&A 17
Take this picture home with you !!!
In business great numbers/performances sometimes are not what they appear,There is no magic secret and no super power ; only money
M&A 20
I will make the feedback public !See example from my latest München University event
M&A 21
DISCUSSIONS
M&A 22
Who can answer these question ?
1) Why are M&A projects never known as failures ?
2) Who pays the price ? Who suffers ?
3) What should you do when you become important in a M&A deal ?
