It’s the M&A season and we thought it is a great time to actually look at some dos for the entrepreneurs while they are thinking a merger. Many entrepreneurs shy from the word M&A or buyout. Here we speak to Anant Koppar, who founded Kshema Technologies in 1997 and grew it to a high value niche services provider in 5 years, sold it out after few years and joined MphasiS Technologies, a division of MphasiS that provides software services. Koppar founded Ktwo Technology after leaving his Mphasis job.
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Excerpts from his recipe for a successful buyout:
a) Find out the cultural match with the new company. For a company to sell out, its important to find that cultural match. Because when you launch a company, several people join in. You have to look whether your employees are comfortable in the new management system. Cultural match is crucial.
b) Find out what you will get from this new development. Whether this merger or acquisition is suitable for you. You should find out what monetarily you will gain.
c) You should definitely opt for a buyout if it provides you a better career path. For example when Kshema Technologies was sold out, I was running a team of 600 people. From there I went to Mphasis where I used to run a 4000 people team and I was creating value at their management level. One should look if he/she would be able to harness hi/her talent in the new role of the company.
d) Many people think, taking care of culture takes care of everything. It’s only the beginning of a long journey towards integrating the two businesses and that goes beyond cultural match. You should be personally committed to bring integration in the two companies. The CEO of the company should take help from the entrepreneur and vice-versa. The integration should be deeper. Both the parties work together to carry out a new business plan.
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