Chris Hawkins: Career Mobility, Merger and Integration Process
Introduction: Chris Hawkins
- Director Corp Dev at SunEdison
- Integration of acquired companies in NA
- Setting up global shared services center.
You’ve worked as a consultant at one of the large global consulting firms and ‘in-house’ on M&A with a very fast moving corporate player. Can you compare the two environments?
- 8 – 9 years on PwC on audit side.
- Exposure into non-account work and he saw that he couldn’t ‘speak the language’ of other parts of the business.
- Now is able to swim the whole pool.
Consulting vs. in-house?
- Mind set is very different. Serving in a client service role objectives are a little different. At the end of the day in house you’ll still be here. As a consultant, that might not be the case. Your companies name is attached to it, not your own.
- There’s a higher level of accountability building the house that you have to live in.
- Drive of the people in consulting is different. In corporate, you’ll see different motivations, not necessarily on the same page.
Contrast the differences.
- Leading by influence. Getting everyone on the same piece of music. Easier at a consultant.
For the last several years, you’ve been focused on M&A activities. Can you give us some context of the work you’ve done…
- Merger and integration.
- Buys two types of companies – those with people, those without.
- FirstWind Deal – entire company – 250 people
- Projects
- Split between finding deals and integrating them.
- Buying a company isn’t easy. Making it work is also difficult. Can’t just throw it over the wall and expect them to coexist.
As you’re looking at a possible acquisition, when do you typically get involved?
- doesn’t work very well to bring in an integration team too close to the deal being done.
- Should all tie into the valuation model. Need someone who can see the synergies and help with valuation.
- When you bring everyone into the game early and get buy in on a road map for integrating the two entities – cost savings, new business, etc.
For those of us on the outside looking in, give us a sense of the work that’s gone into an acquisition before any news becomes public?
Typical life-cycle:
- NDA
- Diligence & preliminary term sheet
- Sign a PSA, purchase and sale agreement
- Sign to close varies
Once your team has settled in on the idea that a specific transaction will go through, what are you looking for within the firm to maximize the value of this acquisition?
- You can either save $ or drive more $
- Cost savings:
- Business A isn’t going to do something anymore – may also cost rev.
- Duplicative back office functions
- Complementary supply chains
- Revenue Side:
- Cross-sell or up-sell to current customer lists
- Partnerships
- Technologies each company may have
- Sometimes you’re betting on the future of a technology paying
There’s likely a significant value factor – the business model, horizontal / vertical integration, specific book of business. I’d imagine in every transaction, there’s one big value driver. Is that right, or am I missing something?
- Is there a theme associated with it.
- FirstWind: Wanted to get into wind. Directionally, it was about getting into wind. Also sub-components.
The audience for this podcast are ambitious corporate professionals. What one piece of tactical – go implement today – advice do you have for this group?
- Everything needs to drive some kind of value.
- On a macro level that may take months
- On a daily level – you need to know what you’re doing that will drive the highest value.
- What is the highest and best use of your time.
What’s your favorite business book?
chawkins@sunedison.com