“The merger that looks like a ‘best healthy’, came with its very own proportion of demanding situations. It gave us an attitude on our method toward destiny. It is a dwelling testimony of the way the reason and medical possession with the aid of each person, helped us in effectively turning around an antagonistic situation.”
April thirteen, 2019 marks the tenth anniversary of certainly one of the most important events inside the corporate records of India – the purchase of Satyam by means of Tech Mahindra. Prior to the purchase, Tech Mahindra becomes a spot participant that derived a hundred% of its sales from the telecom vertical. On the other hand, Satyam becomes the fourth biggest Indian IT services corporation in terms of revenue, indexed in each the Indian and US stock exchanges. It had over 50,000 employees with operations in 66 international locations and counted 185 Fortune 500 organizations as customers.
Tech Mahindra and its parent corporation – the Mahindra Group saw the purchase of Satyam as a strategic opportunity to transport to the subsequent level of increase. The acquisition could permit the Group to diversify across verticals, customers, and geographies, marketplace a huge range of offerings to Satyam’s robust purchaser base.
Termed as a sincerely bold attempt – not simply inside the scale and length, however also in terms of managing expectancies – of the buyers, customers and the employees. The daunting task changed into made possible with Tech Mahindra’s decisive management. The merger puts forth some terrific lessons which maximum new-age companies can imbibe to show around any adversarial state of affairs and make the maximum of the sort of conditions:
Risk Taking Capabilities:- “If you dare nothing, you benefit not anything,” every enterprise ambitions for constant income and margins, but for long term profitability, one wishes to look beyond natural increase possibilities i.E. Acquiring/making an investment in new business opportunities. This will assist in staying relevant on this for all time evolving marketplace.
Humane approach:- Mergers and Acquisitions (M&As) is a disturbing/trying affair for now not just the management however the personnel and other stakeholders. Motivating employees to a not unusual cause is one of the key priority areas.
Building accepts as true with:- Collective selection making through constructing agree with among numerous inner stakeholders holds the important thing to fulfillment, at some point of any M&A eventualities. Therefore, it’s miles recommended to maintain them all up to date about your actions.
Retaining & nurturing Talent:- Your personnel are your biggest asset. Invest in their schooling and talent-constructing so that they churn out the satisfactory-in-magnificence answers for your clients’ issues. Implement worker connects programmes to cope with all their grievances and applaud their difficult work.
Client communique and figuring out possibilities that help you build scale:- Connect with the prevailing customers and offer them the warranty that they need – how you may retain to better serve all of your customers. Use your information and abilities to win their treasured vote of belief and loyalty. In a few cases, it is able to even get you greater leads.
Preserving shareholder price:- The goal of any a hit control is to boom income, earnings, and free cash waft which similarly interprets into increased dividends and capital profits for its fairness proprietors. Never lose sight of the identical.
Transparency:- Keeping the communication clear and crisp enables as it curbs rumors and dispels doubts associated with any precise corporate pass by means of the management
Embracing the trade:- Change is the simplest regular, whether or not it’s far about adopting new technology, new production strategies or incorporating new regulations, be prepared to stand the trade and adapt with the converting instances.
Corporate Governance & corrective actions:- Identify and evaluate key techniques to discern out the regions that want instantaneous control attention. Address the same by incorporating important tests and balances like new guidelines and tips. This may also assist build a framework for future work court cases.
Last however not least, make efforts to talk your endeavors in handling the merger with external stakeholders – the authorities, industry, and media. Your high-quality practices ought to make up for an interesting case have a look at and gaining knowledge of point for others which they could emulate as and while the state of affairs arises.