With academic qualifications in industrial and organizational psychology, Jeff Quade utilizes human resources tools in driving organizational excellence. In April, 2010, Jeff Quade was recruited as a Practice Leader with LGE Execs, heading the Austin, Texas, firm’s newly instituted Organizational Effectiveness and Execution group.
One of the key aspects of his work involved assisting businesses with containing costs while retaining market competitiveness and a dynamic, motivated workforce. In particular, recent turbulence in the global economy has served as a catalyst for many firms reexamining their methods of accessing professional talent.
Adopting organizational structures pioneered in the investment banking and entertainment sectors, many companies are moving away from large, multi-leveled internal staffs. Instead, they organize around a small internal base that directs the project-focused efforts of highly qualified external teams. Through streamlining operations and setting in place optimized compensation and rewards systems, companies take advantage of the efficiencies that this corporate structure presents.
Jeff Quade currently serves as Vice President of Human Resources at Austin-based Active Power, Inc., which focuses on energy-efficient flywheel uninterruptible power supply solutions.
In my career as a Human Resources Executive, I frequently deal with top-level strategic situations, including planning mergers and acquisitions and recruiting executives to continue a company’s prosperity. Many peers in parallel fields often ask me what mergers and acquisitions entail, so I have answered common questions below.
Q: Are there different types of M&As?
Jeff Quade: Yes. Two types occur most frequently. In a “sell-side” deal, a company says, “We want to sell our business.” Sometimes these companies have a buyer in mind; other times, they need help selecting the best possible choice.
Q: What is the second type of deal?
Quade: With a “buy-side” deal, a company expresses interest in buying another company. Again, they might have a purchase in mind, or they might want help finding the best value for their investment.
Q: How does the process work?
Quade: It usually works in one of two ways. A buyer or seller might pitch to other companies, evaluating each, often resulting in an auction. In an instance where the buyer or seller has a target in mind, they might instead accept other offers, but focus on that one ideal target.
A seasoned executive, Jeff Quade possesses expertise in business renewal, team development, and mergers and acquisitions. While working with the LGE Execs consulting firm, Jeff Quade co-hosted a roundtable discussion for businesses with the potential of future acquisition or that were preparing for the process.
One of the major concerns during an acquisition must be the effect that the process will have on the culture and environment of both companies. Unfortunately, the senior management of the acquired company generally has a high turnover rate. If the acquiring company cannot retain the most talented minds of the acquired company, the whole transaction is largely rendered moot, as employees remain a company’s most valuable resource. The two firms should have similar or complementary cultures, otherwise the acquisition could potentially end poorly. In addition, companies must ensure that the acquisition does not become a distraction, especially for managers who may lose sight of their actual goals. Managers must consistently look back to the factors that led to the firm’s success and maintain them diligently.
Mergers and acquisitions (M&A) play an essential role in the development and forward momentum of large corporations. In their simplest form, mergers and acquisitions signify a fundamental restructuring or combination of two or more businesses. Companies considering this type of transaction must carefully review many details when deciding on the nature of such a deal. The following list defines a few basic terms common in the vocabulary of M&A.
1. Carve-out: This is a small piece of a company sold as an IPO (initial public offering).
2. Accretion and Dilution: Accretion signifies a growth in earnings based on an acquisition, whereas dilution indicates an earnings decrease.
3. Conglomeration: This defines the joining of two or more companies with no overlap in business type.
An expert in M&A, Jeff Quade has consulted on numerous deals for corporations such as Cisco, General Electric, and HealthTronics.