My homework might be late, but I have a good reason…

I’ve been quiet on the blogging front this summer. I think I have a good reason! In August, we acquired Agilify, a top notch Intelligent Automation service provider based in Indianapolis. This is the biggest acquisition BP3 has done to-date, and follows on the heels of the acquisition of Transform AI earlier in the year. So, as you can imagine, in the lead-up to the acquisition, and post acquisition integration, we have been very busy! We’re excited to be in Indianapolis, and to be working with so many new clients.

Coverage of our acquisition of Agilify was overwhelmingly positive:

• You can find the official press release here https://www.prweb.com/releases/bp3_global_acquires_agilify_to_extend_automation_capabilities/prweb18135478.htm, and
• A rendition of it on our company website here https://www.bp-3.com/blog/bp3-global-acquires-agilify
• A lot of my thoughts in the moment were captured in this blog post on the BP3 website, https://www.bp-3.com/blog/agilify-is-joining-the-bp3-team
• HFS’ Elena Christensen’s and David Cushman’s piece credits us with doubling down on automation acquisitions: “With the addition of Agilify on top of its acquisition of Automation Anywhere services specialist (and former HFS Hot Vendor) transformAI earlier this year, BP3 becomes a credible rival to the likes of Germany-based Roboyo. BP3 has a footprint in Europe, with 22 of its team on the ground there, led from the UK.”

The work we’ve put in this year has me thinking about acquisitions and how they work. Maybe I can share a few things we’ve learned along the way, through the lens of BP3 and Agilify (and to some extent our previous acquisitions). Acquisitions are tough to do — and tough to do right. I wouldn’t claim that we have it all figured out — we’re still learning. In that spirit of learning, I’ll share what we’ve found so far, but I know we have a lot more to learn on this topic in the future.

Why do an Acquisition?

First, the strategic alignment has to be there. Look for the DNA of the company and what you get with that, what vertical specialization they bring to you, what channels they can bring to you, and what capabilities they bring to the table.

In particular, why acquire Agilify? I think a key point that HFS makes well in their article is that BP3 is “born-BPM” in our DNA. We naturally see the processes that are behind everything we do. Prior to acquiring Agilify we had very successful and growing RPA practice. And we wanted to add more “born-RPA” DNA to our firm- a company with leaders who really came up through the ranks delivering RPA for real-life clients.

From a vertical perspective, Agilify doubles down on our focus on healthcare client needs as well, doubling the number of healthcare and life sciences companies we work with.

From a capability perspective, Agilify also brings capabilities to the table that enhance what we do — in particular Academy services and RPA COE services, and their BluePrism practice.

Of course none of the strategic fit matters if you don’t also have culture fit.

In a Services Firm, Culture Fit has to Work

In the professional services world, if you don’t have people, you don’t have a business. If we acquire a services firm and everyone leaves, we’re left with nothing at all. So we have to have cultural alignment with the leadership team down to the team members.

Think of it like hiring all of these people at once — if you were, you would test their capabilities and their culture fit and compare with other candidates. When you’re acquiring a company, you’re effectively making this decision in aggregate, and comparing to other companies that you could acquire. Which one offers the best capabilities and the best culture fit? And if you’re hiring someone, which ultimately matters more? (hint: it’s the culture fit)

Consider Doug Thompson’s take, as the CEO of Agilify:

“ This is an exciting time for Agilify. From our very first meeting, both our cultural and technical fit were obvious. BP3’s global footprint, our joint obsession with superior solution delivery, and our complimentary services will provide increased value for our collective customers. “

How do we make it Work at BP3?

I’ve been part of 5 acquisitions in my career — all of them at BP3, and all of them on the acquiring side of the table. We have some ideas about how to make it work: we lean heavily on our culture and teamwork, and I know we can do more to step up our operational excellence when it comes to integrating new businesses into BP3.

• Modexe (2014) — a business process consultancy based out of London
• Teknovare (2016) — an AI services business based out of Denver
• Futurum (2016) — a business process consultancy based out of Copenhagen
• TransformAI (2021) — an Intelligent Document Processing and RPA services firm based out of Houston
• Agilify (2021) — an RPA services firm with a great healthcare practice based in Indianapolis.

First off, our approach is to provide a lot of autonomy to our acquired firms. Each of these firms came into BP3 with an established leadership team and loyalties and experiences together. We look to benefit from this experience. Our company wouldn’t be what it is today without the contributions of each of these acquisitions, shaping our business to modernize for the next leg of growth.

Second, we look to create discussion and forums for sharing best practices. When we were smaller our leadership team and our practice leaders were all the same people, but now we are large enough that our communities of practice can be more inclusive in these discussions.

Third, we look to cross-pollinate — to get our teams working together in the field on real projects. It is uncomfortable, it causes friction, but it is good friction. The kind that makes everyone sharper, like a honing a knife. We try to bring everyone to the table in mutual respect and really learn from each other. Putting a client at the center of that effort takes the politics out of it on our side, we’re all just there for the best client win!

Fourth, we try to find alignment in our key values and messaging. Agilify, for example, was 100% focused on delighting their customers. BP3’s way of verbalizing that was 100% success for our clients. We can all align behind a Faster Way to Do That® — because finding the best practices gets our clients to their business outcomes faster. Our key pillars: more focus, more foresight, more follow-up help us organize and create buy-in around the effort we need to put in to build our business the right way.

Fifth, the sooner you can start thinking of everyone as part of your mothership, the better. Our teammates in Europe and the UK are every bit as much part the beating heart of BP3 as our teammates in Austin, Texas. Are there differences in culture? I’m sure there are. But those differences are very small by comparison to the elements that we have in common and that drive our business.

It’s important to remember that not every acquisition works out. So, two more recommendations to avoid failure:

1. Make sure you have more than one way to win, as an acquiring company. First, you have your financial model based on their performance. Second, you think about cross-selling what you do into their clients. Third, you think about cross-selling their capabilities into your clients. Fourth, you look for cost synergies that don’t negatively impact client experience (consolidate back office functions if you can). Fifth, you look for new channels you can tap into — whether they are software channels or consulting channels. Sixth, you look for whether your skills cross-apply effectively — can we staff our teams on each others’ projects?
2. Stay disciplined about how to say no. If an opportunity you pass on goes on to be wildly successful, you may even regret saying no. But you have to just be happy for them and stick to your discipline. You’re not making decisions in an arena of certainty — you’re weighing risk and reward, and you live with that disciplined approach every day.

How do I make it Work if I’m being Acquired?

I’ve been thinking about this, too. If you’re being acquired, how do you set yourself up for success? It isn’t all about the companies — it’s about the people that make these companies tick! The first thing to do is understand what kind of acquisition this is:

1. Cost-cutting consolidation in a fragmented but slow-growing market. I don’t have great advice for this scenario not having lived it myself.
2. Adding capabilities in a fast-growing market to get to a bigger scale

For scenario #2 — acquisition in a fast-growing market — this is the situation I have some familiarity with, so let’s put more focus on it:

1. The most successful people I’ve worked with post-acquisition bring the same enthusiasm and energy to the combined firm as someone who just got hired for a new job does. They’re positive energy is infectious to their team and to BP3. (Note: the inverse — the “downer effect” — is also true).
2. If you find yourself with time on your hands, figure out how you can help or volunteer for something that you see as a need. Get involved in the combined business.
3. Make your clients successful and happy — those references and that hard work makes everything work for a services firm!
4. Communicate with your leadership team that has come over with you (if you’re not on the leadership team), keep in touch with them and stay in tune.
5. Find some connections at the mothership that resonate with you. We have great people at BP3 that are culture carriers, and if you get aligned with them they will really help you get plugged in and make sure you get help when you need it.

Being acquired in a hot market can be a great career opportunity — because growth and change create opportunities for people who are in the right place at the right time, with the right capabilities.

Acquisitions in Intelligent Automation

In our space, acquisitions should be opportunities to grow — to paint on a bigger canvas, as it were. Intelligent Automation is growing in leaps and bounds, as I’ve previously discussed on this forum, so there’s really no reason for an acquisition to involve major restructuring as well, unless the acquired firm has more than one business unit and one of those business units is not desired by the acquiring firm.

Acquisitions are also an opportunity for us to put more arrows in our quiver for our sales team — to give them more ways to add value and hit the target for our clients. We often hear from our clients that they loved our work so much they wish we also did “X” — and if you’re one of our clients reading this far, rest assured we’re listening and we’re working on growing our capabilities to better meet you where you are and where you want our help.

Any other advice to offer for anyone involved in acquisitions? Leave a comment!