April 13, 2019 marks the tenth anniversary of one among the biggest events within the corporate history of India – the purchase of Satyam with the aid of Tech Mahindra. Prior to the acquisition, Tech Mahindra turned into a gap participant that derived a hundred% of its sales from the telecom vertical. On the other hand, Satyam turned into the fourth largest Indian IT offerings employer in phrases of sales, indexed in both the Indian and US inventory exchanges. It had over 50,000 personnel with operations in sixty six nations and counted 185 Fortune 500 agencies as clients.
Tech Mahindra and its parent employer – the Mahindra Group saw the acquisition of Satyam as a strategic possibility to transport to the subsequent stage of growth. The acquisition might permit the Group to diversify throughout verticals, customers, and geographies, marketplace a wide variety of services to Satyam’s sturdy client base.
Termed as a honestly bold try – no longer simply inside the scale and size, however additionally in terms of coping with expectations – of the investors, clients and the personnel. The daunting undertaking was made possible with Tech Mahindra’s decisive leadership. The merger places forth a few great training which most new-age agencies can imbibe to turn round any adverse situation and make the maximum of this kind of conditions:
Risk Taking Capabilities:- “If you dare nothing, you benefit not anything,” each enterprise aims for consistent earnings and margins, however for long time profitability, one wishes to appearance past natural increase possibilities i.E. Obtaining/investing in new business opportunities. This will assist in staying applicable on this forever evolving marketplace.
Humane method:- Mergers and Acquisitions (M&As) is a traumatic/attempting affair for now not just the management but the employees and other stakeholders. Motivating personnel to a commonplace motive is one of the key precedence areas.
Building agree with:- Collective decision making with the aid of building agree with amongst numerous inner stakeholders holds the key to success, all through any M&A situations. Therefore, it is really helpful to preserve them all updated about your moves.
Retaining & nurturing Talent:- Your personnel are your biggest asset. Invest of their education and talent-constructing so they churn out the high-quality-in-elegance answers to your customers’ problems. Implement worker connect programmes to cope with all their grievances and applaud their difficult paintings.
Client verbal exchange and identifying possibilities that assist you build scale:- Connect with the existing clients and offer them the assurance that they want – how you will maintain to higher serve all your customers. Use your expertise and skills to win their precious vote of agree with and loyalty. In some cases, it could even get you extra leads.
Preserving shareholder cost:- The objective of any a hit management is to increase sales, income, and loose coins flow which similarly interprets into increased dividends and capital gains for its equity proprietors. Never lose sight of the same.
Transparency:- Keeping the verbal exchange clean and crisp enables because it curbs rumours and dispels doubts associated with any unique corporate move by using the management
Embracing the alternate:- Change is the best constant, whether it’s miles about adopting new technologies, new manufacturing strategies or incorporating new policies, be organized to face the alternate and adapt with the converting instances.
Corporate Governance & corrective moves:- Identify and assessment key processes to figure out the regions that want instant management interest. Address the equal by way of incorporating vital assessments and balances like new policies and pointers. This will also help build a framework for destiny work lawsuits.
Last however no longer least, make efforts to speak your endeavours in managing the merger with outside stakeholders – the government, industry and media. Your high-quality practices could make up for an exciting case observe and mastering point for others which they might emulate as and whilst the situation arises.