Video case (full case): Equity-based entry mode: acquisition - AMICA

Summary

Amica, un leader polonais dans la production d'appareils de cuisine, a été fondée en 1957 et est désormais célèbre sur les marchés européens. Exportant plus de 50% de sa production, elle vise une croissance accrue des ventes à l'international, notamment en Europe de l'Est. Elle possède des marques prestigieuses telles que Gram, Hansa et CDA. Amica combine l'exportation et les acquisitions pour s'étendre, en s'adaptant aux conditions géographiques et culturelles. Malgré des défis comme la concurrence chinoise et les différences culturelles, elle poursuit une stratégie de développement international avec succès.

Takeaways

• 🏭 Amica est un fabricant polonais de cuisines et appareils ménagers qui a commencé par produire un cuisinière au charbon en 1957.
• 🌍 Plus de 50% de la production d'Amica est exportée, principalement vers les marchés européens.
• 📈 Le groupe Amica génère plus de 70% de ses revenus sur plus de 50 marchés mondiaux.
• 🏢 Le groupe possède plusieurs marques internationales, dont Gram, Hansa et CDA, acquises au fil des ans.
• 🚀 La stratégie d'expansion d'Amica combine l'exportation et les acquisitions, en fonction de la distance géographique et des conditions politiques et culturelles du pays.
• 📉 La saturation croissante des marchés européens et la concurrence des concurrents chinois ont conduit Amica à se tourner vers les marchés de l'Est.
• 📚 Les expériences passées, y compris les échecs, ont appris à Amica à réviser sa stratégie de développement de marque sur les nouveaux marchés.
• 💼 L'acquisition de nouvelles sociétés implique une analyse approfondie, des négociations et un processus de due diligence.
• 🤝 Les synergies entre les sociétés acquises et Amica sont essentielles pour réaliser des économies et améliorer les processus.
• 🌐 Les différences culturelles et organisationnelles constituent un défi majeur lors de l'intégration des sociétés acquises.
• ⏱️ Les projets d'acquisition peuvent prendre jusqu'à 2-3 ans et nécessitent une planification prudente et réaliste.

Q & A

Quelle est la première année de production du premier cuisinier à gaz de la société Amica ?

1957

Quels sont les principaux marchés où les produits Amica sont connus ?

Les marchés européens, en particulier en Allemagne, au Royaume-Uni et en Scandinavie.

Quel est le pourcentage de production d'Amica qui est exporté ?

Plus de 50% de la production d'Amica est exportée.

Quels sont les autres noms de marque appartenant au groupe Amica ?

Gram, Hansa et CDA.

Quel est l'âge de la marque Gram lorsqu'elle a été acquise par Amica ?

La marque Gram, fondée en 1899, a été acquise par Amica en 2001, ce qui fait 102 ans.

Quelle stratégie a adoptée Amica pour développer sa présence sur les marchés russe et orientaux ?

Amica a commencé par développer sa présence sur ces marchés à travers sa marque allemande.

Quels sont les défis auxquels Amica a dû faire face lorsqu'elle a exporté vers des pays éloignés géographiquement ?

Amica a dû faire face à des défis tels que le manque de connaissance des marchés, comme l'Australie, et la gestion des coûts de transport et de distribution.

Pourquoi a décidé Amica de commencer à收购 des sociétés sur différents marchés européens ?

Amica a découvert que c'était plus facile de distribuer ses produits à travers les canaux de distribution déjà développés par les sociétés acquises.

Quels sont les principaux concurrents de Amica sur le marché ?

Les concurrents principaux de Amica incluent les entreprises chinoises qui acquièrent de nouvelles sociétés à un rythme rapide.

Quelles sont les étapes clés que Amica suit lors de l'acquisition d'une société ?

Les étapes clés incluent la due diligence, les négociations, l'achat et la signature du contrat.

Quels sont les défis auxquels Amica a dû faire face après l'acquisition de sociétés ?

Les défis incluent la combinaison de deux cultures organisationnelles différentes, la mise en œuvre de plans d'affaires et la gestion de la transition dans les sociétés acquises.

Outlines

00:00

🌍 Amica S.A. : De producteur local à leader mondial

Amica S.A. est un fabricant polonais de cuisine qui a produit son premier cuisinière à gaz en 1957. La marque est désormais connue sur les marchés européens avec plus de 50% de ses produits exportés. Le groupe Amica génère plus de 70% de ses revenus sur plus de 50 marchés mondiaux, notamment en Allemagne, au Royaume-Uni et en Scandinavie. Le groupe a également acquis des marques internationales telles que Gram, Hansa et CDA. Le processus d'acquisition et d'expansion a commencé par des exportations, suivi par l'achat de sociétés réfrigérateurs scandinaves et le développement de la présence sur les marchés de l'Est et de Russie. Malgré des défis et des échecs initiaux, Amica a adopté une stratégie de mixte d'exportation et d'acquisition en fonction de la distance géographique et des conditions politiques et culturelles du pays.

05:05

📈 Stratégie d'expansion et leçons apprises

Amica a adopté une stratégie d'expansion qui combine l'exportation et l'acquisition de sociétés, en fonction de la distance géographique et des conditions politiques et culturelles. L'entrée sur les marchés balkaniques a été facilitée par un agent qui a développé la reconnaissance de la marque sans frais fixes pour Amica. L'échec de l'entrée sur le marché italien sans base de clients ni connaissance du marché a conduit à la révision du modèle de business. Des projets verts ont également été envisagés en Russie, mais ont été abandonnés en raison de connaissances limitées du marché et de risques élevés. Les acquisitions récentes comprennent une entreprise britannique et une entreprise française, avec des défis pour s'adapter au modèle d'affaires d'Amica.

10:08

📑 Processus d'acquisition et synergies

Amica effectue une due diligence approfondie qui peut durer de deux semaines à un mois avant de signer un contrat d'acquisition. Le processus implique une équipe dédiée qui se concentre sur la due diligence et utilise des salles de données virtuelles pour réduire les déplacements. Les négociations sont un point crucial du processus et peuvent échouer en raison de divergences sur le prix final. Les acquisitions se font généralement en une étape, bien que cela puisse être étalé sur plusieurs années. Les synergies potentielles, comme des économies de 10% dans les processus d'achat, sont calculées en se basant sur l'expérience passée. Après l'acquisition, les managers dépendent fortement du plan d'affaires conclu et des managers de synergie sont chargés d'adapter les processus des deux côtés.

15:12

🌐 Défis et recommandations pour les acquisitions

Amica fait face à de nombreux défis lors des acquisitions, y compris la combinaison de cultures organisationnelles différentes et l'adaptation aux conditions externes changeantes. L'entreprise apprend de ses erreurs et devient de plus en plus efficace avec chaque nouvelle acquisition. Les recommandations incluent d'utiliser les services d'une entreprise de conseil pour la première acquisition, de rester réaliste dans les plans et de bien analyser la capacité à fonctionner dans la nouvelle culture. Il est également important de bien étudier le marché et d'assumer que le projet d'acquisition prendra jusqu'à 2-3 ans. La prudence est recommandée, et même avec l'expérience actuelle, Amica ne déciderait pas d'une acquisition en deux mois.

Keywords

💡Amica

Amica est une entreprise polonaise qui fabrique des appareils de cuisine. Elle est devenue connue dans les marchés européens grâce à ses fours à gaz et aux autres appareils de cuisine. Dans le script, Amica est mentionnée comme étant un leader sur le marché des appareils de cuisine en Pologne et a réussi à se développer à l'international grâce à des exportations et des acquisitions.

💡Exportation

L'exportation est le processus d'envoyer des biens ou des services à un autre pays. Dans le script, il est dit que plus de 50% de la production d'Amica est exportée et que cela est prévu pour augmenter dans les années à venir. Cela montre comment Amica a utilisé l'exportation pour étendre son marché et augmenter ses ventes.

💡Acquisition

Une acquisition est l'acte d'acheter une autre entreprise. Amica a acquis plusieurs marques et entreprises comme Gram, Hansa et CDA pour se développer sur différents marchés européens. Cela montre la stratégie d'Amica pour s'agrandir et améliorer sa présence sur les marchés internationaux.

💡Marchés émergents

Les marchés émergents sont des économies qui connaissent une croissance rapide et offrent de nouvelles opportunités. Dans le script, Amica envisage d'augmenter sa présence sur les marchés de l'Europe de l'Est, qui sont des marchés émergents avec un potentiel de croissance.

💡Concurrence chinoise

La concurrence chinoise fait référence à la pression concurrentielle des entreprises chinoises sur le marché international. Le script mentionne que les concurrents chinois achètent de nouvelles entreprises rapidement, ce qui met Amica sous pression de continuer à se développer et à rester compétitive.

💡Stratégie d'expansion internationale

Une stratégie d'expansion internationale est un plan pour élargir les opérations d'une entreprise dans d'autres pays. Amica a utilisé une combinaison d'exportations et d'acquisitions pour élargir ses opérations. Le script explique comment cette stratégie a fonctionné pour Amica et les défis auxquels elle a fait face.

💡Synergies

Les synergies sont les avantages que deux entreprises obtiennent lorsqu'elles fonctionnent ensemble, souvent après une acquisition. Amica s'attend à ce que des économies de 10% soient réalisées dans les processus d'approvisionnement grâce aux synergies créées par les acquisitions. Cela montre comment Amica espère améliorer son efficacité et réduire ses coûts après une acquisition.

💡Dilemme de l'entrée sur le marché

Le dilemme de l'entrée sur le marché se réfère à la décision d'une entreprise de choisir la meilleure façon d'introduire ses produits sur un nouveau marché. Le script mentionne que Amica a d'abord utilisé des agents pour le marché des Balkans, puis a envisagé d'acquérir des entreprises. Cela illustre comment Amica a navigué parmi les différentes options pour entrer sur les marchés internationaux.

💡Cultural fit

Le cultural fit fait référence à la compatibilité entre la culture d'une entreprise et celle d'une autre entreprise ou d'un marché. Le script explique comment Amica a découvert que sa culture organisationnelle fonctionne bien en Allemagne, mais pose des défis au Royaume-Uni, mettant en évidence l'importance de la culture dans les acquisitions et l'expansion internationale.

💡Dilemme de l'acquisition

Le dilemme de l'acquisition est le processus de décision interne d'une entreprise sur l'opportunité d'acheter une autre entreprise. Le script décrit comment Amica a manqué une acquisition en Espagne en 2012 en raison d'un manque de consensus sur le prix et comment cela a finalement été bénéfique pour eux. Cela montre comment Amica prend des décisions prudentes concernant les acquisitions.

💡Droit des affaires

Le droit des affaires est l'ensemble des lois et des règles qui régissent les transactions commerciales et les relations entre les entreprises. Dans le script, Amica effectue une due diligence approfondie avant d'acquérir une entreprise, ce qui est essentiel pour s'assurer que tout est en ordre légal et financier. Cela illustre l'importance du droit des affaires dans les transactions d'acquisition.

Highlights

Amica is a leading Polish kitchen-appliances manufacturer.

Amica appliances are well known throughout the European markets.

The Amica Group generates more than 70 percent of its revenue from sales on over 50 global markets.

The company is most popular in Germany, Great Britain, and Scandinavia.

Amica's portfolio includes international brands Gram, Hansa, and CDA.

Gram, a traditional and prestigious Denmark-based brand, was acquired by Amica in 2001.

Hansa is a brand associated with reliable technology, popular on Eastern European markets.

CDA, a British brand, was acquired by Amica in 2015 and is recognized in kitchen furniture design studios.

The Amica Group employs approximately 2,500 people worldwide.

Amica's journey from a local producer to a global player involved acquiring companies on different European markets.

Amica's initial international presence was developed thanks to the economic and political transformation in Poland.

Amica started with exporting as a first step towards international expansion.

The company developed its presence in Russia and Eastern markets through its German brand.

Amica found it easier to distribute products through acquired companies' existing distribution channels.

The company plans to increase its global presence, especially on Eastern markets, due to the saturation of European markets.

Amica is aware of increased competition from Chinese players in the market.

Amica uses a mix of export and acquisitions as its international expansion model.

Amica's presence in the Balkans was initially supported by an agent without any fixed costs.

Amica learned from its failed attempt to build its own brand in the Italian market.

Amica considered starting a greenfield project in Russia but decided against it due to high potential risks.

The company's latest acquisitions include a British firm known for kitchen furniture design and a French company.

Amica's international expansion strategy is based on further development in the kitchen appliances sector in Europe.

Amica uses consulting companies to identify potential acquisition targets.

The acquisition process includes due-diligence, negotiations, and signing contracts.

Amica performs a thorough due-diligence that may take from 2 weeks to a month before signing a contract.

The company uses Virtual Data Room technology to facilitate the due-diligence process.

Negotiations are a crucial part of the acquisition process for Amica.

Amica usually buys shares of the whole company in one step, but sometimes it may take multiple steps over years.

Amica assumes the emergence of synergies, such as 10% savings in purchasing processes, with each acquisition.

The company hires synergy managers to ensure smooth transitions after acquisitions.

Combining different organizational cultures is one of the biggest challenges Amica faces post-acquisition.

Amica's organizational culture works well in Germany but creates challenges in Great Britain.

The company's expectations are not always met, and sometimes they are positively surprised.

Amica recommends using consulting companies and being conservative during the acquisition process.

The company advises to stay realistic and assume that the external environment may change.

Amica's conservative approach and low appetite for risk have proven effective in past acquisitions.

Transcripts

 Amica is a leading Polish kitchen-appliances

manufacturer. Its first gas coal cooker was produced in Wronki in 1957. Amica appliances

produced in Wronki are now very well known throughout the European markets. Over 50%

of the company’s production is currently exported, and its plans for the next few years

are expected to generate further growth in export sales.

The Amica Group generates more  than 70 percent of its revenue

from sales on over 50 global markets. The company

is most popular in Germany, Great Britain and Scandinavia. The Amica Group

portfolio also includes the international brands Gram, Hansa and CDA. Gram, which was

established in 1899 and acquired by Amica in 2001, is a traditional and prestigious

Denmark-based brand known throughout Scandinavia.

Hansa, which is a brand associated with reliable technology, is very popular on the Eastern

European markets. CDA, a British brand acquired in 2015, enjoys superb recognition in such

distribution channels as design studios for kitchen furniture. The Amica Group

employs approximately 2,500 people at its plants and offices in Poland and abroad.

Let's find out how it all happened - Alina Jankowska-Brzóska,

Vice President Sales and Marketing at

Amica S.A., talks about Amica’s journey from a local producer of household

appliances to a global player, acquiring companies

on different European markets. You will learn what determines the choice of equity – based

entry mode and what challenges might await you on the way.

It was a time of very big, I would say dramatic even, changes in the Polish economy.

Thanks to the economic and political transformation in Poland

it has begun to be possible to develop  international presence of our company.

As a first step we thought about exporting. Foundation for the future

development of exporting was laid by the German firm that joined the

group together with the owner. Later, in the early 2000s

we bought a Scandinavian refrigerator company

with a strong, well-recognised brand.

As a next step we started to develop our presence in Russia

and on the Eastern markets through our German brand.

I have to admit, it was all hit and miss in the beginning.

We started with exporting with help of our  German subsidiary and later developed our

direct export from headquarters We still export a lot of products

not only to the countries that are  relatively close geographically.

like for example to the Balkans or Post-Soviet  countries but also to Vietnam, Thailand,

and even to Australia which remains big challenge as we do

not know these markets well enough yet. At some point we developed our strategy

and decided to start acquiring companies  on different European markets.

We found out that it’s much  easier to distribute our products

through distribution channels already  developed by the acquired firms.

It's still a complicated process though but we do our best to use the  bought brand to fill our production capacity.

We plan to increase its global presence in the  future especially on the Eastern markets.

This strategy stems mainly  from the growing saturation

of the European markets. It's getting more and more difficult for companies

like ours to build their market share. We are also aware of increased competition

from the Chinese players. They are acquiring new companies in a very fast

pace and bought two rival firms only last year. For our company such processes take much more

time and we wouldn't be able to  reach our goals so quickly.

I don't think we will ever focus on acquisitions  only. We intend to stick to our international

expansion model in the future. It seems to be working well for

us - a mix of export and acquisitions,  depending on the geographical distance

and country’s political  and cultural conditions.

Our presence in the Balkans from the very beginning was supported by an agent,

He developed the brand’s recognition in the region,

without any fixed costs on our side. I think it's a very convenient approach.

It was a clever step to start from only one  person developing our business there.

The strategic question for the next years remains: when to move

from this entry-mode to acquisitions? We keep asking ourselves this question

and the answer will be a part of our  strategy for the upcoming years.

In 2007 we tried to build our own brand on the Italian market.

Without having any customer base and as it  turned out throughout knowledge of the market.

We hired an experienced manager to  develop a new company and failed.

It turned out that there are already  very well-recognised brands present in

this particular market and existing connections  among distributors play an important role.

It was very difficult for a new  brand to enter this market.

We had to bear high structural costs without  having any revenue and in the end we decided

to shut down our Italian undertaking. It has taught us to revise our business

model - opening subsidiary  without having a customer base.

At this moment we don't operate in the  Italian market and are starting to consider

possibilities to enter this market  in a different way again.

In the late 1990s we also took into consideration  starting a greenfield project in Russia.

We were very much interested in  building a production site

focusing on gas cookers. In the  end we decided against it.

After initial research we found out that we didn't  have very profound knowledge of the market at the

time and the potential risks were high. We weren't entirely sure how to best

operate in this market. At first, it was  perceived as a controversial decision,

but soon proved to be right when  the Russian crises began in 1998.

At some point we decided that in order to develop on the European markets,

we need to start acquiring new companies. Trying to build brand recognition in a new market

has proved to be a difficult task in which we  sometimes failed and other times succeeded.

But we've learned a lot from  our previous experiences.

Our latest acquisitions include a British and a French company. The British firm

produces and designs studios for kitchen furniture with its own

brand. The French company doesn’t have its own  brand and adjustment of its business model to ours

was and still is a difficult task.

We developed its international expansion strategy based on firm internal belief in further

development on the European markets in the sector of kitchen appliances. We wanted to use

our production capacity and needed distribution channels and brands owned by well-structured

businesses. We knew already that starting  a business on the new market on our own

is not something we excel at. There were certain market possibilities though

we had to take into consideration. We realized that there are only so

many prospective partners out there and  turned for help to consulting companies.

These firms provided us with a list of potential  companies open to restructuring, licensing

or selling their brand. After thorough evaluation,

if we were interested in the

presented project the whole  acquisition process would begin:

from due-diligence, negotiating to  purchase and signing the contract.

Before we sign the contract we perform a thorough due-diligence

that may take from 2 weeks to a month. Our specialists together with consulting agents

prepare a well-structured bucket-list to check within each of the acquired companies. The whole process

happens internally and requires a dedicated team equipped

with appropriate tools to check various data. The team has to focus mainly on the due-diligence

process and is excluded from  its other day-to-day duties.

Nowadays, we use Virtual Data Room so  our team doesn't have to travel as much

as they used to a couple of years ago. Based on the acquired data we develop a potential

bidding model and start negotiations, which  are a vital point in the process.

Let me show on an example how crucial are they. One of our recent cases includes an acquisition

attempt in Poland, which  did not end successfully,

even though from the strategic standpoint the acquisition would be highly beneficial for us.

Unfortunately both sides had very different approaches to the potential end price.

We tried negotiating for a while but we  couldn't reach any consensus in the end.

We usually buy shares of the whole company in one step. In case of the British company

it was one step, which took us one year. In case of the French company there were two steps,

extended to 3 years, which was connected to the liquidation process of the acquired firm.

Most acquired firms already have their own brand, production site, workforce, offices,

warehouses. When preparing a business  model with each acquisition we

assume the emergence of synergies, for example 10% savings in our purchasing

processes. We calculate these potential  savings based on our previous experience

then negotiate the agreement, sign the  contract and pay the final price.

In the next the step our mangers relay  heavily on the agreed business plan

and start turning it into reality after the  acquisition process has been completed.

I have to admit it is a big  challenge. In Great Britain we hired

so-called synergy managers, who were responsible for adaptation of processes

on both sides as a lot of changes were necessary. Four managers were sent to Great Britain

to make sure that all processes run smoothly  after the acquisition process has been completed.

The synergy manager program turned out to be a  big success and we intend to continue with this

approach in their future acquisitions.

We face a lot of challenges along the way.

Sometimes we can really work out great synergies. In some cases, however, it’s

difficult to meet the assumptions from the initial business plan. In Great Britain,

for example, initially we  planned to change a distributor,

in the end we decided against  it, once we found out

that our customers would receive worse quality product. Such situations happen a lot.

One of the biggest challenges is also combining two different organizational cultures. We do not

have any acquisitions on the Chinese market yet, but even the British market has showed us how

tricky cultural

differences can be. In our British firm we noticed a very different approach to work,

challenges and relations between headquarters and the acquired company. In the beginning

it came as a surprise but I have to say it was  a great learning experience for the future.

Our expectations in the acquisition process are not always met. Sometimes we are

surprised very positively. Other times we have to modify

our initial plans according to the changing external conditions.

In case of our British company the political environment plays a crucial role.

Right now we are facing the threat of Brexit,  problem of an unstable currency

and tensions on the line of China with the US. We are very much aware that we do not operate

in a vacuum, so potential failure is not  always possible to predict beforehand.

However, we learn from our mistakes and are  becoming better and better with each new

acquisition. It is not an easy task though. I would recommend using knowledge and

support of a consulting company when undergoing the first acquisition process.

My overall recommendation would be – don’t make optimistic plans.

Stay realistic Always assume that the external environment

may change and analyse beforehand if you can work within the new culture.

Think how can you support the transition process in the acquired company and transmit

the processes from headquarters.

In cour case we found out that  our organizational culture

seems to be working really well in German environment, whereas it can create a lot of

challenges in Great Britain. I would also say

research the market well to make sure that you can sell your products there, also under

the acquired brand. Assume that the whole acquisition project

will take up to 2-3 years during which your synergy - managers will have to take care of

it. Be aware that these experts during this time  will not perform their other day-to-day duties.

Remain conservative is my another  recommendation – if you can’t afford

the acquisition, do not go for it. Assume to work a long time on the business

plan before making the ultimate decision. Even with our current experience we would never

decide on an acquisition within two months. I really cannot highlight this enough. The time

spent on that is incredibly valuable.  It was very much visible in our

acquisition attempt in Spain in 2012. Based on our calculations we decided not

to pursue the acquisition process, even though the potential partner seemed to fit very well

into company’s strategy. The firm was taken over by our competitor

whose investment, as of 2019, didn’t end successfully.

Such examples prove that our conservative approach  combined with low appetite for risk is effective

and we intend to follow this  approach in the future.