Case Study: Synergon's Acquisition of and Merger with Beauchamp, Becker, and Company
Summary in 50 words or less:
US Financial Services Firm Synergon acquires a settled and venerable UK firm
Beauchamp, Becker & Company to grow a footprint in Europe. A clash of culture, principles, management style and general business approach has created conflict to a level where the critical and iconic Managing Director is threatening to retire.
(a) Why is the Beauchamp acquisition challenging and can this acquisition be salvaged, and if so how?
The Beauchamp acquisition is challenging because of fundamental differences in culture, principles, management style and general business approach.
Beauchamp are proud of what they are, feel what they are doing is time proven and will fight most change especially without clearly communicated and justified reasons why they should change.
It’s hard to believe this can be salvaged without significant compromise from both sides (depending on how you define salvaged; I’m defining it as keeping
Julian Beauchamp out of retirement and fully focused). Synergon needs to appreciate there is benefit and cost reduction in the way Beauchamp currently do business and Beauchamp need to appreciate they need to change to attain growth. The original idea of JJ’s was fair ‘We leave Beauchamp alone’; turn it into the local Synergon office and hence use its back office functions which are more suitable locally and potentially across Europe. Leverage the processes which are more geared to growth like the HR compensation plans and you have the best of both worlds tailored to a region.
(b) If you were in position of Nick, how would you prepare for the upcoming meeting with Julian Mansfield?
I’d:
1. Quickly go to the exhibition as a minimum and possibly the theatre, if I had time; when I met with Julian in the morning I would demonstrate I can onboard some of the Beauchamp way of doing things.
2. Make Beauchamp the local Synergon Office for the UK and with it all the implications; use the Beauchamp back office and the previous processes in the
US Financial Services Firm Synergon acquires a settled and venerable UK firm
Beauchamp, Becker & Company to grow a footprint in Europe. A clash of culture, principles, management style and general business approach has created conflict to a level where the critical and iconic Managing Director is threatening to retire.
(a) Why is the Beauchamp acquisition challenging and can this acquisition be salvaged, and if so how?
The Beauchamp acquisition is challenging because of fundamental differences in culture, principles, management style and general business approach.
Beauchamp are proud of what they are, feel what they are doing is time proven and will fight most change especially without clearly communicated and justified reasons why they should change.
It’s hard to believe this can be salvaged without significant compromise from both sides (depending on how you define salvaged; I’m defining it as keeping
Julian Beauchamp out of retirement and fully focused). Synergon needs to appreciate there is benefit and cost reduction in the way Beauchamp currently do business and Beauchamp need to appreciate they need to change to attain growth. The original idea of JJ’s was fair ‘We leave Beauchamp alone’; turn it into the local Synergon office and hence use its back office functions which are more suitable locally and potentially across Europe. Leverage the processes which are more geared to growth like the HR compensation plans and you have the best of both worlds tailored to a region.
(b) If you were in position of Nick, how would you prepare for the upcoming meeting with Julian Mansfield?
I’d:
1. Quickly go to the exhibition as a minimum and possibly the theatre, if I had time; when I met with Julian in the morning I would demonstrate I can onboard some of the Beauchamp way of doing things.
2. Make Beauchamp the local Synergon Office for the UK and with it all the implications; use the Beauchamp back office and the previous processes in the
Bibliography: Voices from the Front lines; Minguet, Caride, Yamaguchi & Tedjarati; Harvard Business Review, September 2014 Financial Management Pre-Assignment - Andrew Schaefer Page 4