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In December 2018,Autodesk assume PlanGrid for $ 875 million . I worked at Autodesk , attend to in integration for 15 month in the fresh formed Autodesk Construction Group .
mix a inauguration into another party is like jumping into freezing cold water — there is an initial shock to the full organization . As founder , it was important that we took concern of our team and ensured our products continued to work well for customers .
company are bought ; they are not sold . emptor typically pursue acquisitions to :
This billet is for anyone who has a signed LOI or full term sheet with an acquirer and is seem for lessons learned on how to navigate the new existence — what to anticipate and what to debar . For folks who are talking to corp dev , readthis . ( For founders who require to trade their company right now : It is mentally , physically and emotionally taxing to live two competing realities — to envision two vie futures for your startup at the same time . Your business is to preserve optionality and make all choice ( let in running your startup standalone ) uncommitted if you want to nurse an M&A conversation . Do not risk slowing down in carrying into action and growth to talk to corp dev . )
Lesson 1: Vision
After an acquisition , most companies prioritise ware integration as their top business concern . In our case , this was true as well . However , true product integration is often a protracted and unsatisfying first precedency , as it can take year to complete if it ever happens . Unless the computer architecture is exactly the same , and products somehow snap together nicely , the result is often a farrago of incompatible products . The pricy challenge of focalize on product desegregation as the main precedency is that it neglect more decisive motivation . The top priority should be establishing and line up on a divvy up vision .
In 2019 , we needed imaginativeness from leadership , and it would not come for several quarters . It was n’t because of a lack of desire ; there are just a fate of addiction at a large company , and it takes prison term to run any conclusion up the flagpole .
In the former days , our team , tax income target , incentives and sales processes were not desegregate . This lead to construction customer receiving multiple sales call option from different teams within the same company , resulting in ARR butter churn and ARR shift between merchandise agate line .
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Takeaway
visual modality is the foundation of all conversation and death penalty . unmortgaged communication from leadership on vision brings clarity to what we ’re building together — and how . Vision provides the blueprint for merchandising , comms , sale and support to have productive conversation with our client .
Lesson 2: Team
After the accomplishment , a team member carry , “ We never had the prospect to mourn PlanGrid ’s end . ” Within 18 months , roughly 40 % of our squad go away . Some think we had waver in the market and were absorb by our competitor , while others see it as an chance for new leading roles and more verbatim reports .
We had four freestanding startup orgs within Autodesk Construction wondering how everyone would fit together . When reporting structures are not clearly defined , some person ego - pick out out , while others start to become more militant .
Anytime there is an org change and newfangled coverage structure , there will be turbulence , and we experienced this worked up turbulence at full scale . Retention computer software were put in billet to retain the strong performing artist , many of whom have had amazing careers at Autodesk . I did my best to motivate the team and set them up for success before I spend the baton .
If your handcuffs are multiyear , be selfish about how you distribute retention packages . prioritise the mate who you ca n’t live without in the fresh world . There will be a shock to the system and it is best to make decision readily , pass along them quickly and get back to execution .
Lesson 3: Go-to-market motion
With the freshly produce startups came a dozen new products for the newfangled expression section to trade . The party lease a advisor to aid enable and train our folks on how to message and cross - sell . Meanwhile , inducement were put in position to boost sales reps to cross - deal all construction product for the first year .
What surprise me the most was how little ill-tempered - selling materialize despite the opportunity to make more money . Top sales reps told me that what prevented them from selling other product was that it would check deals . They ’d rather stick to the script and sell products they were familiar with .
We necessitate hands - on , in - business firm leading to ascertain how to sell a newly formed platform and train the team on how to do it . The sales squad would finally excel at representing the different product lines , but I left before I saw it happen .
There are certain preparation program where consultant trainers are good option : public speaking , empathy , and industry stock sales methodology such as MEDDPICC . And then there are missionary post critical enablement and breeding that must be own by the company and leadership .
Lesson 4: Back-office systems
During the merger , we had to miss all our item solvent and startup tools to wrench on all the initiative “ winners . ” We waste hours on slow , cumbersome software and were thrown into confusing legacy workflow . The new tools we were given made us not only less fat , but also continually frustrated and angry . We did n’t have software to help us strategically run our business . This is what exalt us to build our new companyTigerEye .
Meanwhile , the team had an immune system response to our young tool . Another acquire startup refused to sour on the systems and would contend military headquarters for another year . Despite the vivid indigence to communicate , we could n’t see each other ’s calendars to schedule time to sing .
Back - office system consolidation is boring — it ’s blocking and tackling — but to function as one team , we must apply the same tools . We made the right decision to act as apace on organization integrations , but we fall back valuable teammates . gravid mass want to utilize dandy shaft to do their work .
Lesson 5: Product integration
It is almost impossible to start product integrating without first choosing the technology leader , determine the technology finish and connect the engineering squad . Without leadership , any conversation on whose architecture or technical school stack or login system is expert will belike trip immediate in - fighting . Assuming a single engineering leader is now in charge , the organisation tacks will admit what libraries to utilize , design - organization choices , dev tool vendor selection and desegregation of each overlapping product functionality .
Our construction division prioritized integrating login systems , because it ’s a abominable experience to make a customer lumber into different product lines .
uniting of the engineering science team and intersection is knotty and intriguing . And the large the squad , the hard it is . Put solid leader in station and prioritize their memory because most keen engineering squad prefer building new products than doing integrating study .
Final thoughts
For folks who are considering take another company , there may be real strategic benefits . But it also issue forth with a tidy tax . Beyond the monetary value of the acquisition itself , the integrating appendage can be time - consuming and ambitious , and it often results in a thrashy transition period and several ware that might not amply desegregate . But this turbulency can be navigated smoothly with clear vision .
As a laminitis sell your caller , be warn that consolidation is a terrible outgrowth . But it might be the good path frontwards for the company , the customers and the team . In 2018 , we attain a wall in term of TAM in SMB and midmarket and needed a quantum leap up to enterprise . We had two bombastic competitors whose product and team were enterprise - quick and this was a exposure for us . I was given the selection to continue a clenched fist - to - fist combat on two freestanding fronts or to link up one to go contend against the other . In the ending , I wanted a fiscal final result for everyone who had worked hard for , and believed in , PlanGrid .
