The unique model of European Digital Group in M&A
European Digital Group (EDG) is an organization dedicated to the digital acceleration of companies. With over 1,500 talents and €280 million in revenue generated in 2023, EDG positions itself as a major player by uniting ultra-specialized leaders in digitalization.
A unique model for acquisitions
The mergers and acquisitions (M&A) operations at EDG are based on a distinctive model where the founders of acquired companies become partners of the group, thus promoting collaborative and sustainable integration.
"This particular model allows us to bypass the classic scheme where founders leave as soon as they receive their earn-out." – Edwina Bassil
Corporate culture according to Edwina Bassil
Edwina defines corporate culture as an ecosystem composed of:
Common values and vision.
Internal and external behaviors.
Work climate.
HR devices.
At EDG, the focus is on business excellence, a strong culture of sharing, and impeccable ethics.
The due diligence phase at EDG
Essential cultural adherence criteria
Culture of sharing: Founders must adhere to sharing values and be ready to include their teams in the group's shareholding.
Ultra-specialist positioning: Strong and recognized expertise is a prerequisite.
Ambition and ethics: Entrepreneurs must aim for market leadership while maintaining high ethical standards.
Willingness to develop: Motivation to enter a new investment cycle is crucial.
Operational commitment: Leaders must remain invested in their companies.
“We prefer not to go through with an operation if we feel from the beginning that it won't work.”
Cultural validation process
To evaluate these criteria, EDG undertakes:
Reference checks via their network of leaders.
Strategic workshops to evaluate alignment of vision and values.
The PMI (Post-Merger Integration) strategy at EDG
Anticipating cultural gaps
During mergers, EDG organizes collaborative workshops from the due diligence phase to:
Identify warning signals.
Create alignment on target vision, organization, and modes of operation.
These workshops, led by strategy and PMI experts, help establish a trusting relationship between the leaders of both entities.
“It is key that founders validate each other to pave the way for a new shared culture.”
Bringing teams along in cultural evolution
Priority to employees before tools
EDG places great emphasis on:
Ensuring employee integration.
Encouraging synergies between entities.
Gradually aligning tools and processes.
“Our obsession is to ensure that all employees are happy to be at EDG.”
Fostering interactions and sharing
To encourage exchanges and synergies, EDG organizes:
Dedicated events and initiatives.
Sessions to share business leads.
FAQ – Answers to common questions about corporate culture in M&A
Why integrate founders into the EDG model?
Their partnership with the group ensures their long-term involvement and promotes the creation of synergies.
How to evaluate the cultural adherence of a target company?
Through collaborative workshops, reference checks, and a thorough analysis of the founders' values and behaviors.
What are the benefits of synergies for EDG?
They allow for the pooling of expertise, generating business opportunities, and accelerating organic and external growth.
Edwina's advice for a successful integration
Anticipate cultural issues
“Anticipating cultural issues is key to the success of M&A operations.”
Aligning stakeholders' interests
Successful integration relies on aligning objectives and values between parties.
Conclusion
At EDG, the success of M&A operations relies on anticipating cultural issues, focusing on employees, and a collaborative integration strategy. This unique model, led by Edwina Bassil, highlights the importance of sharing and commitment to create a strong and sustainable common culture.
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