Mergers and acquisitions (M&A) can feel like a high-stakes gamble—but they don’t have to. I’ve been in the thick of it, from leading a $54M restructure at AIG to guiding clients at Consultgenix through growth-driven deals. Over 20+ years in finance and consulting, I’ve learned that M&A isn’t just about buying or selling—it’s about building something stronger. Done right, it’s a rocket booster for business expansion. Let’s unpack how to master M&A for strategic growth, drawing on real wins and hard-earned lessons—because the payoff is worth the effort.
Why M&A Is a Growth Accelerator
Growth doesn’t always come from grinding harder—sometimes it’s about leaping forward. At AIG, I saw M&A transform our Personal Insurance division in Latin America and the Caribbean. We shed non-core units, restructured operations, and came out leaner and more profitable. Why? Because M&A lets you acquire talent, markets, or capabilities you’d take years to build.
It’s not for the faint-hearted—deals can flop without focus. But with the right strategy, M&A turns “what if” into “what’s next.” I’ve lived that shift, and it’s why I’m passionate about getting it right.
Financial and Operational Considerations
M&A isn’t a handshake and a check—it’s a puzzle. At Lehman Brothers, I cut my teeth on capital structures; at AIG, I applied it. Financially, you’re juggling valuations, debt, and synergies—can you make 1+1 equal 3? Operationally, it’s about integration—will the pieces fit?
Take my AIG experience: We divested units worth $54M, but it wasn’t just about cash. We streamlined ops, cut debt by $40M, and boosted EBITDA by $20M. That took number-crunching (I leaned on Oracle Hyperion) and people-wrangling (leading 30+ pros). Both matter—miss one, and the deal unravels.
A Real-World Example: $54M Restructure at AIG
Let’s go back to 2012–2018 at AIG. I was Finance Head for Personal Insurance in the LAC region, overseeing $900M in premiums. We had bloated operations—non-core businesses dragging us down. My job? Clean it up.
We targeted divestitures, working with legal, risk, and compliance teams to ensure every move aligned. I led the charge—analyzing financials, negotiating terms, and outsourcing non-essentials to a Shared Service Center in Bogota. The result? A $54M restructure, $20M in EBITDA gains, and a 30% profitability spike over three years. It wasn’t glamorous—just methodical. That’s M&A done right: Strategic, not splashy.
Avoiding Common M&A Pitfalls
I’ve seen deals stumble—and I’ve dodged those bullets. Here’s what trips people up:
- Overpaying: Ego kills value. At Consultgenix, we’ve kept clients grounded with data-driven valuations.
- Culture Clash: At AIG, we prepped teams for change—30+ pros don’t pivot without buy-in.
- Integration Fails: Kemper taught me execution matters—$35M in savings came from syncing systems fast.
- No Clear Goal: Why are you doing this? Growth? Efficiency? I’ve asked that at PwC and beyond.
Dodge these, and you’re halfway there. It’s less about luck, more about prep.
Steps to a Successful Deal
Ready to master M&A? Here’s my playbook, forged from Lehman to Consultgenix:
- Set Your Why: Growth, market share, cost savings—nail it down. At AIG, it was profitability.
- Do the Homework: Dig into financials and ops—I’ve used SAP and Power BI to spot risks.
- Value It Right: Don’t overreach. My Lehman days taught me discipline in valuations.
- Plan the Merge: Map integration before signing. At AIG, Bogota was ready Day 1.
- Lead with Clarity: Rally your team—30+ at AIG followed because they understood the vision.
This isn’t theory—it’s what I’ve done. At Consultgenix, we’ve guided clients through joint ventures, hitting 12% efficiency gains by sticking to this script.
The Human Side of M&A
Let’s get real: M&A isn’t just balance sheets—it’s people. I’ll never forget the tension at AIG when we announced divestitures—folks worried about jobs, morale dipped. I sat with teams, explained the “why,” and showed how it’d make us stronger. When we hit that $20M EBITDA mark, they weren’t just relieved—they were proud.
At Consultgenix, a client once said, “Derrek, you made this feel less like a transaction and more like a step forward.” That’s the goal: Growth that lifts everyone, not just the numbers.
Why This Matters Now
Expansion isn’t optional—it’s survival. I’ve steered M&A through booms at AIG and busts at Lehman. Today, with markets shifting and competition heating up, standing still isn’t an option. M&A can fast-track your goals—new regions, new products, new scale. But it’s a tightrope—strategy keeps you balanced.
Think about your business. Could an acquisition unlock your next chapter? That’s where strategic planning shines—turning ambition into action.
Let’s Plan Your Next Move
Mastering mergers and acquisitions isn’t a solo act—it’s a partnership. With decades in M&A consulting, I’ve helped businesses navigate deals that deliver. At Consultgenix, we’re all about growth that lasts—not just headlines.
If you’re planning an M&A or curious about its potential, I’d love to talk strategy. Reach out at derrek@consultgenix.com to explore your options. Let’s make your next deal your best one—together.