The  Arancho  Doc  Story  A  Love  Story  with  a  Happy  Ending  

A Merger in Action

Localization World Barcelona, 16 June 2011

Chapter 1 Falling in Love

Love at first sight…

After the event a group of participants walks under the arcades and comments …..

Bologna, 1999

Local event organized by

Feder.Cen.Tr.I.,

(Italian National Association of

TCs)

…  transla2on  memory  is  technology  crap  !!!  

…  our  customers  don’t  

understand  us!!!   ...  Italy  is  different  …   ???!!!  

…  our  job  is  artwork!!!  

...  You  are  right,    we  deserve  to  be  paid  much  

more  …  

You  agree  with  these  comments?   Actually  I  

don’t  at  all!!  

Don’t  you  think  we  should  talk?  

I  think  we  have  a  similar  vision  ...  

So  do  I!  Let’s  get  together  and  do  

something  important!  

…won’t  share  my  knowledge  with  these  people!  

•  We operate in a rapidly changing market – let’s stop complaining and act!

•  We can achieve much better results if we work together – let’s share all that we have

•  We should partner to be stronger and improve our capacities

•  We have a lot of brilliant ideas…

And the Common Vision was…

And after a few months we were already talking about getting married…

BUT…

Chapter 2 Failure and

Disappointment

Scenes from a (quasi) marriage…

Oh  no…  they  SNORE  !!  

Why  do  they  never  close  the  toothpaste  tube???!!!  

MY  home  is  NICER  than  yours  !!!  

Actually  I  worked  hard  for  this  computer  –  it’s  MINE  !!!  

After just a few weeks…

Maybe  we  should  stay  on  our  own  aPer  

all…  

Well,  we’re  not  really  sure  we  

want  to  share  it  all  with  them…  

And after a few months…

Chapter 3 Self-Analysis

Sitting at home alone…

First thoughts on the sofa… •  How could it all end like this… I thought we

were on the right track towards a merger…

•  Did I say or do something wrong?

•  But they did not want to share their toys with us…

•  Were they the right match for us?

•  Are they good enough?

•  Do we really want to merge after all? Maybe we can still do it all by ourselves… or not?

Seriously… why did it not work the first time?

•  We hadn’t understood what a merger really is! •  A merger is not an acquisition •  We forgot about our final objective and only

focused on silly issues along the way. •  We were not aware of the whole merger process:

at a closer look we got scared •  A merger is both a strategic AND a financial step •  But are the reasons for getting together still on

the table? •  Yes… Let’s think it all over again and focus on

our goal!!!

Get help from the analyst!

Crucial role of ELIA, where we: •  Have held regular meetings with our fellow

members •  Have learned how to share •  Could monitor and discuss the market (and its

crises) •  Made new, great (business) friends •  Succeeded in focusing on how to really join

forces Get  together,  grow  

together!  

Chapter 4 Group Therapy

The Self Test

1.  What position do our companies have in this industry? Are we happy with what we are?

2.  Can our companies keep up with our customers’ future needs? Do we have the necessary talents to react to or even anticipate changes?

3.  Are we strong enough to compete on our markets? Do we know our current and future competitors? What will they offer in the future ?

The Self Test 4.  Can we sustain our growth? Can we afford to

differentiate ourselves? When is big, big enough and when is small, too small?

5.  Do we have the necessary entrepreneurship to run our companies? Are we investing in professional management? Or sales skills? Are we set for accessing the financial resources necessary to ensure a future for our companies?

6.  What have we learned from the recent financial crisis? Do we have a strategic agenda for the future?

Examples  from  our  scoreboards  Arancho

•  SAP and Life Sciences industry language providers (certified translators, special QA systems, in-country reviewers)

•  Well-established sales network

•  Branding and marketing activities, international visibility

•  Presence in 4 strategic countries (ES, FI, CZ, BE)

•  EN15038 Certification

Ic.Doc •  Main vertical market:

manufacturing industry •  Customers with CMS and

integrated processes; strategic partnerships with other service providers

•  Strong Language Technology and DTP skills

•  Presence in 2 strategic countries (CH, JA)

•  Powerful proprietary workflow management system

Focus  on  Real  Goal:  Why  Merge?  Together  we  can:  •  Deploy  bigger  producHon  capacity,    •  Offer  more  and  new  services  •  Afford  more  investments  in  technology  and  R&D  •  Count  on  a  stronger  sales  team  •  Address  more  and  bigger  customers  •  Access  more  markets  •  Access  more  financial  resources  •  Hire  highly  skilled  staff    •  Distribute  and  reduce  risks    

Chapter 5 The Marriage

August 2010. Arancho and Ic.Doc restarted the merging process. December 2010. Arancho Doc was founded.

Clear  Agenda:  IntegraHon  and  Further  Development  

•  Clear  Vision,  Strong  MoHvaHon  •  Strong  Leadership  •  Transparent  CommunicaHon  with  Staff  •  Involvement    of  all  Staff  in  the:  

ü Merger  Process  ü  New  OrganizaHon  ü  Corporate  Goals  

•  IntegraHon  Plan  •  Comprehensive  Budgets  &  Total  Control  of  Finances  

Other  Tips  from  our  Experience  •  Chemistry  must  work,  partners  must  like  each  other  •  Share  the  same  vision,  be  complementary  and  be  

ready  to  share  all  that  you  have,  really!  •  “Power”  can  be  shared  •  1+1  must  be  more  than  just  2,  also  financially!  •  Have  clearly  defined  long-­‐term  strategies  and  tacHcs  •  Allow  for  integraHon  Hme  and  iniHal  ups  and  downs  •  Be  ready  to  accept  mistakes  and  start  it  all  over  again  •  BUT:    Insist,  stay  focused  on  final  goal!    

It all happened thanks to the European Language Industry Association, which played a central role in this merger

Thank you ELIA !

Thank  you  for  your  a[enHon  !  

Ques2ons  ?