DERGEL Executive Search

Building Leadership Teams Together

The new M&A – Acquhiring

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Many companies will change significantly because of the current crisis.

  • Some will fail
  • Some will survive
  • Some will thrive.

The jury is out on how many companies will change significantly, but every company will change because of COVID-19.

For leaders that have the capacity and vision to make their business thrive, the current situation provides them with opportunities.

For leaders that are struggling to survive, their business may have value over the medium and long term. However, in the current environment, the inability to fund ongoing costs limits their ability to last beyond this crisis.

Over the past years, companies focusing on growing inorganically have been using M&A as the driver of their growth. We all know of companies that have been acquired for any or all of the following reasons: technology, market and talent.

For the companies that are currently in process of failing or surviving, many of them do not have a choice but to let go teams. There is no time for a quick sale of a piece of the business, and talent, as well as their leadership, have been (or will soon be) asked to move on.

For companies in a position to thrive, now is the perfect time to bring on board the talent they need to grow as we move beyond the initial stages of the crisis.

In recent years, some companies acquired others just to get the talent, leaving the technology and markets behind (or left to die a slow death).

Today, companies with the capacity to thrive do not need to acquire other companies. They can acquhire.

Acquhiring teams – leaders together with the talent they lead – is an opportunity companies in a strong position must strongly consider as a means for future growth beyond traditional M&A.

We are working with our clients now to guide and facilitate these acquhisitions. Companies with teams that are being acquhired have the opportunity to make the best of a difficult situation. Businesses that are acquhiring are giving business unit leaders and their teams the opportunity to continue to work together with renewed passion, vigor and success.

If you are interested in discussing how acquhiring can help your business, let me know.

Samuel Dergel is Principal and Founder at DERGEL Executive Search.

Dear Samuel: Negotiating Executive Employment Offers in the era of COVID-19

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Dear Samuel,

I have been with a large, well known company for a while in various finance and operations roles. I am ready to take on the CFO role at a smaller, growing company. I recently received an offer. The company looks like a good choice for me to start my CFO career path.

I’m in middle of negotiating my agreement and package. When I received the offer, things were still in the pre-COVID-19 state. With a pandemic being declared and the business world being uncertain, I have one major concern and I would like your advice.

There is a severance package attached to the opportunity that is fair (after we’ve negotiated a few things). The issue is that it kicks in on start date. I’m going to resign from my well know blue chip employer and going to a much smaller growing company. With the new world of uncertainty of COVID-19 and a business world that is changing from day to day, what happens if I resign today and when I start in a few weeks the situation at my new employer-in-waiting changes so drastically that they tell me they don’t need me anymore?

Living on the Edge, Massachusetts

Dear On the Edge,

Your question shows that you have a sharp mind.

Usually, your concern is not an issue. You’ve likely done your due diligence, like the prospects of your potential new employer and feel that there is a good fit for you to go in and make a difference while you tackle new responsibilities and challenges. Waiting a few weeks is usually not an issue.

Businesses are now facing challenges they have never had to face before. And, when taking a look at the speed and depth of this natural disaster and the impact it has on business, who can really say that companies with limited cash and resources will pull through this crisis?

I have never seen anyone ask a potential employer to cover the risk between resignation date and start date. I have never seen the need to either. Until today.

I recommend that you go to your potential new employer and express your concern to them. If they have been reasonable with you throughout your negotiation process, I expect that they will be reasonable as well.

I do not recommend that you go to them with a proposed solution. Ask them to solve the problem. If the method that they come back with is fair and deals with your concern, accept it.

I also recommend that you get into your new company as soon as possible. I actually had one new CFO start at a client on Monday March 16, 2020. Their first day in the office was bedlam, but the leadership and ownership were grateful to have a steady hand on deck to help them deal with the stormy seas.

Close the deal and get on board. Your new employer needs you even more than they did a month ago.

Good luck and keep me informed,

Samuel

Dear Readers,

Dear Samuel is a feature of our Leadership Blog that deals with questions executives have about their leadership roles and career situations. If you have any questions that you would like Samuel Dergel to address, please send your questions to [email protected].

Please note that all questions asked will be treated in the strictest of confidence and all identifying material in questions asked will be edited to respect the privacy of all participants and companies.

Employers: Your Opportunity during the Panic

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I do not take the current pandemic situation lightly. And neither do you.

It can be hard to realize that while this is a challenging time, both from a personal as well as a business perspective, I can tell you that employers like you have a significant opportunity.

No doubt the current situation has you worried and concerned, both about your business and your people. You have some very difficult decisions to make, many times very quickly, sometimes with not enough information.

Now is the time to build your team for the future. The current situation is temporary, and the rebound will be very strong.

The executive talent market over the last years has been a challenge. Until recently, business has been very good. The ability to attract and hire the best talent possible was a challenge because, let’s face it, things were going well – so why would great talent want to leave?

I promise you that in the current situation, executive talent is now more open to listening to other career opportunities. With many executives are beginning to work at home, and situations at their employers are challenging, they will be more responsive to opportunities they are called for.

You have a lot to focus on now. But do not miss the opportunity at hand to build your star leadership team for the future.

I urge you to get cracking now. Waiting for the rebound will leave you behind the curve and in tough competition, and ultimately will delay your rebound.

You do not have to do this by yourself. Choose to work with an executive recruiter who understands your business and how to pitch the opportunity and has the reach to get star talent to the table (or video conference) for interviews. Now.

Samuel Dergel is Principal and Founder at DERGEL Executive Search.

1 Mistake Executives Make using LinkedIn

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It wouldn’t surprise you that as part of what I do, both as an Executive Recruiter as well as my role overseeing our CFO Moves and CHRO Moves weekly reports, I view many LinkedIn profiles and follow a large number of executives in my LinkedIn News Feed.

In speaking with executives daily, I continuously recommend that people focus on how they use LinkedIn. Today, LinkedIn is the social media tool for business professionals, and executives have a huge opportunity to control their personal and career brand.

Do you stand out?

The number one piece of advice I give to executives is that they need to be visible. In today’s world, if you are not visible, you don’t exist. When you look around you, successful executives are successful in large part because of they take control of their visibility and their brand. Remember – your personal brand is what people say about you when you are not in the room.

So how do you impact what people say about you? The good news is that today, with LinkedIn, you can stay visible with your network by engaging with them individually. You can do this by tagging people, messaging them, commenting, liking or sharing other people’s content. You can also share news articles of interest to you, and perhaps even share your perspective and start a conversation.

These things do not need to take up a large component of your time. But if you are not personally engaging with your network, you are losing the opportunity to be visible, stay relevant and be kept in mind for opportunities.

The Mistake

Too many executives have their LinkedIn posts controlled by their corporate communications team. While I understand the reason why a company would like to control the content on behalf of the company, this is the worst thing you can do for your career on LinkedIn.

You are missing the opportunity to personally engage with people in your network, as well as grow your network organically. In not doing this, people in your network will just see you ‘selling your company’, and not have the opportunity to genuinely interact with you, build trust, and keep you in mind for future career opportunities.

This is not to say that you should not support your company while in the role. Rather than be a social media channel for the corporate agenda, be genuine and engage with your network and build trust for both you and your company. But do not do this exclusively.

Your LinkedIn Profile belongs to you. Do not give it up to your company. Your career and personal life is yours, forever. No matter how much you are dedicated and committed to your company, this has a time limitation.

Invest in your career – Take control of your personal brand.

Dear Samuel: Help! I’ve been Ghosted

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Dear Samuel,

Here is my question:  What happens when an executive recruiter “ghosts” you as an executive candidate?  

There are tons of articles due to a robust job market that candidates are “ghosting” recruiters during the sourcing and/or after job offers phases.  But how do you deal with a top-rated recruiter who “ghosts” executive candidates? This happened a few times to me and I find it frustrating, especially at the executive level. 

Thank you,

Chuck in Chicago

Dear Chuck,

Wow.

First, on behalf of all the executive recruiters out there that care, I’m sorry that someone treated you this way.

Why do people Ghost others? This is a relevant question across the spectrum today, both in our personal lives as well as the business world we live in.

From my perspective, there are three reasons why people Ghost.

  1. They are uncomfortable with sharing bad news, or
  2. They have no news, or
  3. They don’t care enough to follow up.

Executive recruiters are humans, and as humans, we are not perfect.

However, “top-rated” recruiters stay “top-rated” knowing that a candidate can be a client at some point in time in the future. All executives that they deal with need to be treated with respect, courtesy and care.

If I was in your shoes, I would take the Ghosting as a sign that the client is not interested in you. You need to look at it as it is their loss, and that they were not the right fit for you. See it as a gift.

Your next role is out there with an employer that appreciates what you are bringing to the table and sees your value. They also have made the decision to work with an executive recruiter that reflects their values.

And as you need to hire for your new employer, you’ll make sure that you’ll only work with “top-rated” recruiters that care.

Wishing you the best as you continue your career for people that treat you right,

Samuel

Dear Readers,

Dear Samuel is a feature of our Leadership Blog that deals with questions executives have about their leadership roles and career situations. If you have any questions that you would like Samuel Dergel to address, please send your questions to [email protected].

Please note that all questions asked will be treated in the strictest of confidence and all identifying material in questions asked will be edited to respect the privacy of all participants and companies.

Samuel

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