The “M&A Transformation Years”

In 2004, Juergen decided that he wanted to focus the activities on one area, where Globalator could make a difference globally. After a long analysis phase Juergen sat down with Peter and told him that he would like to change the way M&A transactions are done. The numbers painted a clear picture – most M&A transactions globally are failures and result in low or no return on investment and cause misery of employees on both ends. Peter also agreed that this was a business area that was worthy of change. The theory was that by focusing on the people behind the transaction instead of just the financials, plus by preparing transactions long before the transaction and accompanying them well into the integration (a long-term managerial approach instead of a short-term advisory and disintermediation approach) transactions would massively improve their chances for success. In order to proof that theory Juergen took on a number of engagements to buy businesses (acquisitions) and sell businesses (divestments or exits). Due to Juergen’s personal interest in working with science or engineering driven businesses the focus was on technology companies. In 2007 Globalator GmbH was formed in Austria to advance those activities, since Juergen lived in Austria during those years. On the buy-side Juergen completed a number of global acquisitions, including some where he actually became interim CEO of the companies that he bought in order to proof the managerial approach versus the advisory approach. Amongst other engagements Juergen became interim CEO of companies in South Korea, Belgium and France. On the sell-side Juergen transformed some of his CEO coaching engagements into build-to-sell engagements, where he was optimizing companies for an exit as part of the senior leadership team. In different engagements Juergen’s roles changed between Board positions and active interim management positions to establish certain functions and capabilities as needed (again a managerial approach instead of an advisory approach). One of the successes that culminated this phase was the exit of a biotech company in Austria that was sold in 2009, after many years of building towards this exit. The great success was not just based on the monetary rewards for the founder that allowed him to retire at age 50, it was also that the company was built to secure the future of the employees. After being sold to a US company in 2009, the acquirer was further sold to a US publicly listed company in 2011, which was then further sold to another US publicly listed company in 2016. During all these years and well beyond (12 years and counting) the company was further expanded in its location in Austria and the CEO that was built-up over the years and put in place in 2009 during the exit remained in charge. A great proof of the theoretical concept that a managerial approach to M&A can secure success of a business well beyond the financials.