Interview with Federico Lalatta
Former EVP Global Strategy, Corporate Development Officer and Member of the Executive Committee of Fortune-Ranked Global Hotel Chain, and Former Partner and MD of Large Global Consulting Company
Mergers and acquisitions are rarely straightforward affairs. The complexities associated with blending disparate systems and operating styles are many, but it’s the creation of a new corporate culture – one through which talent from both sides of the acquisition feel respected, heard and supported – that can make or break the success of the investment.
To mitigate the risks associated with these organizational demands, consulting firms are often hired to aid in the transition. Such was the case when a large hotel brand acquired a smaller chain of boutique resorts. But as a senior veteran of the consulting industry, Federico Lalatta, then the EVP global strategy of the acquiring company, understood that not all approaches to consulting activities are created equal.
“We acquired a smaller, yet highly regarded American urban boutique hotel chain,” said Lalatta. “We wanted to preserve the uniqueness of their curated proposition while still bringing them into the fold from a systems and infrastructure standpoint and achieve material cost synergies. After attempting to work with one of the large consulting firms, it became clear that a more customized and hands-on approach was required… one that could navigate the sensitivities and politics of such an important acquisition. That’s when we turned to Amira.”
This delicate balancing act – empowering a smaller organization to retain all the brand attributes that made them an attractive acquisition target while making them part of a larger whole – requires unique skills. “We wanted to send a clear message that we are taking a proactive approach to the integration, one that would respect the unique value they bring to the table yet make positive changes to make the acquisition successful for all parties,” said Lalatta. “Amira tackled this issue by gaining the confidence of both sides. Sometimes she had to protect the boutique approach and their ‘secret sauce’, and other times she had to push the corporate angle,” said Lalatta.
“Amira is corporately trained so she brings the superior methodology, structure and approach that comes with that, but it’s not a rigid cookie-cutter playbook. She genuinely cares about people from both companies involved and isn’t just there to tick the box or close a contract,” stated Lalatta. “She delivers a highly-personalized methodology and approach to the M&A process. It is completely unique, yet it puts her on-par with the largest consulting firm.”
Working from within the business, Amira actively developed workgroups and workstreams across all functions of the business. This approach not only helped Amira to overcome the skepticism and trepidation that is common to post-M&A culture but ensured that those who were responsible for the long-term success of the business co-authored the go-forward plans.
“When you work with larger firms, there’s a rigidness to the approach that simply is not right in every situation. Amira can adapt processes and activities to meet the needs of complex organizations like ours because she understands what it takes to drive meaningful, enduring transformation from the inside,” said Lalatta. “Amira was very thorough, very credible and very diligent – she was never caught off-guard with data, information or a plan. She was able to manage substantive issues – even the complicated and controversial ones – while engaging with two entirely different cultures in a personal and meaningful way.”
This “operational resiliency” is possible because Amira uses her skills to teach operators how to approach challenges, work through them collaboratively, and ultimately find resolution and success without the ongoing help of a consultant to mediate the process. This creates an environment that not only addresses the challenges of today but ensures the organization can face future challenges independently.
Given the challenges that were created by the prior engagement with one of the big consulting companies, “integration fatigue” had set in and little progress was made in moving the business forward. To shake off this sense of paralysis and to get the business moving forward, Amira sometimes had to push progress and, in the process, be very direct with individuals from both parties to take them outside their comfort zones. This created a healthy friction at times, but it was justified and necessary to move the integration ahead on a positive path. In a short period of time, both sides saw the benefit. “The overarching sentiment of the engagement from both our teams was ‘we learned to love Amira!’ This is a very powerful statement to me because it means they saw the value she brought to the business and appreciated it,” said Lalatta.
Today, the new organization has achieved its goals of creating a valuable brand extension for the acquiring company, while the boutique operator benefits from the scale and infrastructure of the larger organization, accelerating growth both domestically and in new global markets. Lalatta cites Amira’s work as instrumental in helping to achieve these results.
“Amira’s ability for customization is a huge asset and brings competence in M&A activity and business transformation. Both teams had a very positive experience working with her, and I would highly recommend her for similar engagements,” stated Lalatta.