As challenging as it sounds, M&A brings significant opportunities for business growth that most companies never have the chance to experience. CFOs have substantial responsibilities in leading successful acquisition and integration processes.
To better prepare for a potential M&A, Charles Freund, Chief Financial Officer at FLEETCOR, joins the next episode of the CFO Weekly podcast. He shares the challenges and benefits of an M&A growth strategy and the importance of ESG initiatives.
In this episode, we discuss why CFOs should work close to HR, international growth strategies, the science behind M&As, how to lead a successful integration process, amongst other interesting topics.
Working Close to HR
The current market determines CFOs to develop a closer relationship with HR managers and collaborate on various programs, like reward programs, training, and development, to attract and retain great talent. Another big focus where CFOs collaborate with HR is ESG initiatives.
“One of the things we are super proud of is our efforts in diversity, inclusion, and belonging”
Smart Growth Strategies
FLEETCOR's overall growth strategy does bifurcate. The company focuses on organic growth, where it sells more business and clients than it loses. But the company also supplements organic growth with a thoughtful acquisition strategy. When approaching a target, the team thinks about the initiatives it could employ to improve its growth trajectory and profitability. If the model is successful, FLEETCOR will proceed with the acquisition process.
“For us, it's less about what we buy and more about what we can do with it, either on its own or in conjunction with other assets we already own”
Next on the List... M&A Integration to Achieve Business Growth
Once the acquisition process is done, you should work on integrating the acquired company. First and foremost, focus on controlling the cash, people, and systems. Assign a project manager that will coordinate the whole process. Then, engage the management team and start working on building new sales channels or innovating products.
“Integration does take different forms”
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