Rollups have emerged as a dynamic and increasingly popular approach to consolidating multiple businesses under a single entity.
Having supported over 100 acquisitions, Consero’s expertise and Finance as a Service (FaaS) solution offer a proven playbook for successful acquisition preparation and post-acquisition integration. Chris Hartenstein (Consero’s VP of Client Solutions) and Tony Esposito (Director of Private Equity and Venture Capital, Consero) provide a comprehensive overview of add-on acquisitions, exploring their benefits, challenges, and key considerations for a financially successful implementation.
Whether you are a business leader, finance executive, or investor looking to explore rollup strategies, this webinar is your opportunity to gain valuable insights from industry thought leaders and experts. This presentation will:
- Explore growth acceleration strategies
- Discuss financial and operational considerations
- Highlight successful, real-world rollup strategies
Trends in Add-On Acquisitions
Add-on acquisitions are gaining momentum despite recent economic slowdowns, with expectations of increased activity.
- Market Dynamics: Higher interest rates have temporarily slowed M&A activity, but pent-up demand is anticipated.
- Preparation: Companies must prepare their finance and accounting teams, systems, and processes for acquisition opportunities.
Preparing for an Acquisition: Best Practices
Preparation is crucial for smooth integration and to avoid disruptions in daily operations.
M&A Experience
- Assess if your finance team has experience with acquisitions.
- Consero offers expertise, having executed hundreds of acquisitions.
Due Diligence
- Ensure thorough evaluation of target companies.
- Identify key risks and opportunities with support from CFO-level professionals.
Integration Planning
- Standardize processes and documentation before the acquisition.
- Align technology and systems to enable seamless integration.
Avoid Disruptions
- Use dedicated implementation teams to allow internal staff to focus on day-to-day operations.
- Avoid delays by integrating acquired entities quickly
Challenges in Add-On Acquisitions
Here’s how to avoid the common hurdles can impede the success of an acquisition and integration.
- Personnel:
- Evaluate the skill set of both the existing and acquired teams.
- Address role clarity to prevent employee turnover.
- System Compatibility:
- Integrate systems (e.g., ERP, CRM) as quickly as possible to avoid operational inefficiencies.
- Consero supports transitioning disparate systems to a unified platform.
- Change Management:
- Expedite integration to avoid resistance to change.
- “Rip the Band-Aid off” for smoother transitions.
- Scalability:
- Ensure processes and systems can handle increased transaction volumes and complexity.
The Role of Finance and Accounting Teams
Finance teams are critical in managing acquisitions while maintaining ongoing operations.
Focus Areas:
- Strategic Vision: Keep CFOs focused on high-level strategy rather than operational details.
- Scalable Processes: Develop robust systems for payroll, billing, collections, and vendor payments.
- Timely Reporting: Provide accurate, consolidated financial and operational reports.
- Audit Readiness: Ensure thorough documentation and compliance with regulatory requirements.
Key Building Blocks for Successful Integration
There are four foundational elements for successful acquisition integration.
- Tech Stack: Implement best-in-class systems for efficiency and scalability.
- Expert Team: Leverage experienced professionals for seamless integration.
- Reporting Framework: Establish timely and reliable reporting processes.
- Automation: Utilize technology to automate repetitive tasks and improve accuracy.
Streamline Your Next Acquisition with Consero
Proper preparation, scalable processes, and a skilled finance team are essential for acquisition readiness. Accelerating integration maximizes ROI and minimizes operational disruptions.
Consero’s proven playbook and expertise streamline the acquisition process, allowing executive teams to focus on strategic goals. Consider partnering with Consero for your next acquisition to leverage their experience and best practices.
