AT GROUND LEVEL region ’ s two biggest construction markets , Saudi Arabia and the UAE , are alone estimated to be worth over US $ 70 billion and US $ 41 billion , respectively . The scale and ambition of the projects currently underway in these nations are remarkable and consequently require an unparalleled level of well-rounded expertise .
This has created a strong preference for multidisciplinary practices such as from AESG , which are able to offer construction-related consultancy to meet world-class standards . The ability of AESG to rapidly expand its portfolio of complimentary services is greatly aided by acquisitions of global specialist firms such as SGW .
It is also worth noting that such acquisitions play favourably due to the multicultural workforces that are typical of global organisations . For example , AESG counts individuals from over 50 nations and across seven regions among its ranks . Such a diverse workforce is well suited to integrate seamlessly with teams that are assimilated into the organisation following acquisitions .
Since its establishment over 14 years ago , AESG has acquired three firms and is therefore proficient with this process . AESG and SGW had worked together on projects for many years prior to the acquisition and there was always a mutual respect between the two organisations , striving to be market leaders and providing best in class service with a high level of integrity .
Organic or inorganic route ?
Both strategies have sound fundamentals , and both have therefore been leveraged by AESG to build its world-class , multi-disciplinary team . There are of course unique advantages to acquiring a business rather than simply onboarding senior business leaders .
For one , following the integration process , the acquiring firm has the opportunity to bring the acquired firm ’ s unique expertise and talent into the business . Equally important , this approach grants immediate access to advanced technology , existing client relationships , and a robust organisational structure .
What is especially important is that when the teams in both firms are of exceptional talent , sharing the same ethos and drive towards excellence , then collectively it is a stronger approach when forces join for a greater value add to clients .
BEST PRACTICES TO FOLLOW IN CROSS BORDER ACQUISITIONS
• First and foremost , there needs to be strong alignment in culture and philosophy to ensure a seamless value adding synergy .
• Most of the due diligence criteria are no different than if the company were to acquire a locally-based organisation .
• When global teams are involved , consideration needs to be given to address differences in culture and management styles .
• Differences in market perceptions and opportunities can complicate the valuation process .
• Irrespective of where the company being acquired is based , the process starts with a thorough assessment of fundamentals .
• This includes a comprehensive review of financial health , including audits , tax records , revenue streams , profitability , debt obligations .
• An analysis of operational aspects such as client contracts , and ongoing projects is required .
• Ownership and protection of intellectual property , including proprietary technologies and methodologies need to be evaluated and understood .
• HR and talent considerations such as review of key personnel , employment contracts , talent retention needs to be evaluated and understood .
• Legal compliance is perhaps where most care should be taken in crossborder deals .
• It is essential to verify compliance with local and international regulations , licensing , contractual obligations and regulatory requirements can present hurdles .
• Acquisitions , being large complex deals , always involve a number of nuances to be navigated .
• All can be overcome through meticulous planning and expert guidance which is crucial for the success of such cross-border acquisitions .
Inorganic acquisition also minimises the risks and time associated with building expertise and market presence from scratch , providing a faster pathway to competitive advantage and global expansion .
In summary AESG , through the launch of its Security Consultancy aims to redefine security and risk management consultancy with comprehensive solutions that integrate security seamlessly to address physical , personnel and procedural protections in harmony with design . �
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