LAVA helps making M&A integrations successful
As a business integration facilitator, LAVA successfully helps organisations to create the value that is targeted when doing a Merger or Acquisition (M&A). One of its focus markets in this area of expertise is Field Services. We are proud to share a story of ‘Growing Together’ of The House of HR, and its subsidiaries Logi-technic and Bekaert Technics, and how LAVA helped.
Bekaert Technics and Logi-technic were both experts in field services. While Bekaert Technics focussed on mechanical and electrical installation and maintenance, Logi-technic operated in industry, ICT, building and infra. After their acquisition by The House of HR both companies continued to act as independent units, servicing their own proper markets.
Several years after the acquisitions, The House of HR’s top management felt that there was still a lot of potential to be realised.
The House of HR inquired LAVA’s help to accelerate growth, by identifying and exploiting synergies between the two acquired companies.
In order to map this unexploited value, LAVA started with an organisation scan and SWOT analysis. An organization capability assessment was performed (structure, staff, skills, systems, processes, knowledge sharing etc.) and management and the sales process analysed. This scan served as an enabler to define value improvement opportunities.
In a second phase, LAVA facilitated the development of one common vision and growth strategy, involving an integration team consisting of management and key employees of all three companies to ensure credibility and buy-in. Critical success factors were defined in the context of go-to-market, organisation design, processes & systems, and finance. A companywide communication plan was drafted.
In a third phase, a value improvement plan was created and an operations plan (including KPI’s) defined to roll out the growth strategy. This included an adapted, single organisational structure, integrating both companies, and making use of the Shared Services of the House of HR.
This exercise, together with the commitment of the management teams, enabled the two companies to grow into one branded company, Logi-technic, with a single organisation structure and a common goal, vision and strategy. Buy in was created in both organisations and additional recruitment planned.
The integration team later compared LAVA’s approach with a submersion into an oxygen bath that inspired and led to a new found dynamism within the organisation, leading to an accelerated growth.
Looking back one year after the post-merger integration, the new integrated company Logi-technic, managed by Karel Staelens, has managed to achieve its first year business goals and is even ahead of schedule in its future plans.