동원의 향후 M&A 시 HR 역할
2014.12.20(토)
Presentation of Innovation Story
HR IMPLICATIONS IN M&A
Team 12. DW CONSULTING
김성진, 김효진, 민수환, 박현우
석치호, 윤성진, 이광민, 장혜정
Contents
Ⅰ. DW M&A Status
Ⅱ. M&A Success / Failure cases
Ⅲ. Implications
Ⅳ. Suggestions
Ⅴ. Conclusion
1/10
I. DW M&A Overview
Overview
기업명
대표자
Major M&A History
(주)동원그룹
(http://www.dongwon.com)
김재철
(기준일자 : 2014.12.16)
Date
Acquired Companies
1995.10
성미전자
2008.6
스타키스트
설립일자
1969.4.16
본사주소
서울시 서초구 마방로 68
2012.5
대한은박지
종업원수
840명
(2014.9월 기준)
2014.1
한진피앤씨
신용등급
AA-
(한국신용평가기준)
2014.8
테크팩솔루션
Company Value Evaluation(동원산업)
• 전통적 수산업 분야임에도 불구하고 최근 9년간 주가 2085% 급등! 향후 M&A를 통한 지속 성장 전략
최고 : 365,000원
(2013.5.31)
최저 : 16,700원
(2005.2.28)
2085%
** [ 가치지표 ] (2014.12.16 기준)
구분
PBR
PER
동원산업
1.56
12.85
CJ
1.56
39.62
Through active M&A, DW gains competitive advantage in global environment
2/10
II. M&A Failure Cases due to HR
Company Value Evaluation
• DW experienced M&A failure with Sungmi Electronics and logistics
• A variety reasons including unstable management, financial problems contributed to the cause
• DW seems to have learned lessons from this experience as it focuses on the fields, financial
and strategic issues
However, as most of M&A failures can be traced to poor support of HR-related issues,
DW starts to prepare for the best and worst scenarios.
A list of Failure cases
Companies
Financial
Legal
Hanwha & Samsung
High
Normal
Daimler & Chrysler
High
Normal
HP & Compact
High
High
AOL & TimeWarner
Normal
High
HR
Failure Factors
Labor management problem
LOW
Vertical / Horizontal
Conservative / Start-Up
Politicized, Turf protection
• “75% of M&A’s fail or turn out to be disappointments (due to HR)”(Fortune)
• “HR Risk : Employees(500), Key employees(10%, 50), annual salary(40million won)
 50 * 40M * 3(times) : 6 billion won
• Productivity Risk : Employees(500), 20 thousands won/hr, Integration time(12months), time loss(3hr)
 500 * 3H * 5 days * 4weeks * 12months * 20,000won = 7.2billion won
3/10
III. Implications
Three Implications
1. Participation of HR at last stage during M&A process
• Senior HR professionals brought in too little, too late
• HR members lacking in understanding on M&A
• slow preparedness and evaluation for employees
2. A lack of understanding in essential intangible value in M&A
• absent value of Dongwon Way
• Lacking in leadership & commitment
• Not clearly defined goals and objectives
3. Low awareness and recognition of M&A among employees
• No education system about M&A
• Growing uncertainty in employees
• Low Integration between cultures
4/10
IV. Suggestions(1)
HR must involve in M&A at every stages
M&A Approach
1 Strategic Planning
2 Valuation
3 Plan Integration
4 Implement &
Measure
 Searching for
prospective firms.
 Information Analysis
 Form a M&A task
force
 Organize structure &
mange related issues
 Firms adjust
strategies to fit their
business lifecycles,
generating demand
for M&A
 Prospective buyers
search for M&A target
options
 Sell-side develops
disposal strategy and
investor criteria
 Two sides sign
confidentiality agreement
(CA)
 Buy-side carries out
target valuation
 Sell-side provides
materials to buy-side for
related due diligence
Portfolio Option B
2D
Senior HR
2E
Cloud &
ecomme Desktop
S/W
rce
Core Biz
2A Superior
2B
Search
New Ad
Platform
2F Evolution to
Online Portal
 Parties negotiate
M&A terms and
conditions
 Parties sign binding
SPA
 Verify important
documents
 Sign financing
contract
 Apply to governing
authority for
approval
 Transaction closed
- Buyer makes payment
- Seller completes handover
 Post-deal
 Integration plan
implemented.
- Personnel redeployment
- System, process
integration
- Corporate culture
integration
2CExpanding
search
mobile
Advertising
Communication
Junior HR
“The biggest mistake that organization make during the M&A process
is not involving HR” (David Braun)
5/10
IV. Suggestions(2-1)
Add new value to Dongwon Way!
도
전
원칙을
철저히
작은
것도
소중히
새로운
것을
과감히
6/10
가족을
소중히
IV. Suggestions(2-2)
원칙을 철저히
작은 것도
소중히
새로운 것을
과감히
가족을 소중히
◎ 항상 기본에 충실하고 정당한 방법을 선택
◎ 공정하게 경쟁하는 정직한 자세
-정도와 성실
-동원의 경쟁력의 원천/가장 기본적인 행동가치
◎ 자신의 역할을 명확히 인식
◎ 주인의식으로 자신의 역할을 끝까지 완수
-책임과 자율 정신 -현장 중시
◎ 창조와 도전 정신을 내포
◎ 끊임 없이 새로운 것을 창조하기 위한 자세
-자발적인 탐구 자세 -부단한 자기 계발
-항상 변화를 추구
◎ 공유와 지속가능경영을 선언
◎ 성과창출의 원동력은 구성원임을 인식
- 구성원의 다양성 인정
7/10
IV. Suggestions(3)
HR MATRIX AFTER M&A
Root Cause Analysis, Actions, and Expectations about HR problems in M&A
Education / mentoring
Action. 2
Fair PMS
Special Program
Introduce basic concept of M&A
Guarantee the equal opportunity
Innovation story 2.0
Mentor/mentee program
for significant positions and
Advise and support(2,4,6 years)
promotion chances
Similarity/Difference Survey
Action. 1
Root Causes
Expectations
When: Right after the M&A
Factors: Similarities or differences
between two companies
Respect the differences
Learn and respect the cultures,
values, and philosophies
Employee Uncertainty
1. Can understand the differences between
1. Can give the right motivation to
2. Can digitize and analyze the survey
results
process, free theme)
Special compensation
Clash of Corporate Culture
workers
(New product idea, innovate job
both workers
2. Can lay down a groundwork for
GWP
8/10
Compensate the stock option to the
workers who have employees ownership
of acquired company
(Based on stock value before the M&A)
Special program &
compensation
1. Can realize synergy via diverse
experiences
2. Integrate employees by proceeding
various programs
V. Conclusion
“Compared with other HRM activities such as retention and training,
compensation has less of a spotlight in the academic literature on M&A”
(Schmidt and Fowler)
Qn : “Why have divorce rates increased over time?”
An : Financial problems(1990s)  Differences in personality(2013)
“Corporate philosophy : Human-centered management”
by Kim Jae-cheol, Chairman of Dongwon Group
9/10
Thank You
10/10
Lists
Success
Companies
Backgrounds
Success / Failure Factors
LG Chem & Hyundai
Petrochemical
Sought to dominate market portions and expect to
strengthen global competitiveness
CEO strategic leadership and
the specific integration
policies
Lenovo & IBM
Capture overseas customers, distribution, and
marketing channels
Lenovo can only use
“Thinkpad”
Sears & Kmart
To compete with Target or Wal-Mart
Exchange positions
Doosan & B0BCOCK
Expansion of its brand into Europe & N.A.
Dosan Familiarization
Program
Expected huge savings by combing purchasing and
other operations
Geographic or Customer Market Extenstion
HP & Compact
/ Improve financial structures
To capitalize on the convergence of mass media
AOL & TimeWarner
and Internet
Novell & Wordperfect
Differentiated and expansion of its product lines
Daimler & Chrysler
Failure
Lists
Companies
Daimler & Chrysler
Failure
HP & Compact
AOL & TimeWarner
Backgrounds
Expected huge savings by combing purchasing and
other operations
Geographic or Customer Market Extenstion
/ Improve financial structures
To capitalize on the convergence of mass media and
Internet
Vertical / Horizontal
Conservative / Start-Up
Politicized & Turf protection
Buttoned-down, formality
Failure Factors
Vertical / Horizontal
Conservative / Start-Up
Politicized, Turf protection
※ 삼성-한화 인수
■ 날짜 2014.11.26
■ 이동규모 -
삼성테크윈 (4,700명)
삼성토탈 (1,500명)
삼성탈레스 (1,000명)
삼성종합화학 (300명)
■ 양사 직원 평균 연봉
삼성토탈
한화케미칼
9,500만 원
6,780만 원
삼성테크윈
한화
7,900만 원
5,400만 원
가치체계 행동규범
가족을 소중히
◎ 공유와 지속가능성을 선언
◎ 성과창출의 원동력은 구성원임을 인식
- 구성원의 다양성 인정
14
IV. Suggestions(3)
Training and Development program
Cultural Differences
1) Admit the organizational differences between two companies
2) Then admit and respect different organizational values
Action. 1: Similarity/Difference Survey
(* 30 questions with 5 points rating scale)
When: Right after the M&A, and every 3 months.during 3 years.
How: What are the similarities or differences between two companies
Action. 2: Manpower Arrangement & PMS
1)Efficiency of work atmosphere first, then consider balanced placement
2) Guarantee the equal opportunity for significant positions and
promotion chances
Action. 3: Special Compensation & Contest
1) Compensate the stock option to the workers who have employees
ownership of acquired company (Based on stock value before the M&A)
2) Innovation story 2.0 (New product idea, innovate job process, free
theme)
Expectations
1)
2)
3)
4)
Can
Can
Can
Can
understand the differences between workers
digitize and analyze the survey results
relieve the tension among workers
make good working atmosphere