Elizabeth Gerbel, CEO and founder of Houston-based E.A.G. Services Inc., shares how to navigate M&A activity for both startups and large companies. Pexels

Nervous about an upcoming merger or acquisition? You're not alone. Last year, there were nearly 15,000 mergers and acquisitions in the U.S., according to the Institute for Mergers, Acquisitions and Alliances. These transactions, although executed with optimistic intentions, don't always work out. What is it that separates those that deliver from those whose results simply fall flat?

While you won the legal battle, the real culprit to a failed merger or acquisition transaction lies in post-deal activities such as integrating the divesting company's assets into the acquiring company's existing systems, processes, and organizational structure. If executed poorly, companies could face several hurdles, including:

  • Increased acquisition costs
  • Loss in previously efficient business processes
  • Reduced data quality in current and acquired assets
  • Extended TSA timeline

With the stakes being high, it is critical for each step of a merger or acquisition to be rock solid before moving on to the next stage. In fact, when executed successfully, an M&A transaction can significantly benefit both companies — from startups to well-established corporations.

A strategy for M&A data integration

In order to facilitate efficient and effective merger or acquisition, the critical success factors focus on these driving goals: Minimizing organizational disruption and Maximizing ROI. To achieve these goals, we execute three main stages for every merger and acquisition.

  1. Planning
  2. Analysis
  3. Execution

We start with thorough planning, think of planning as the foundation for a successful merger or acquisition. Without a good plan, the company will be vulnerable to all sorts of structural weaknesses. To prevent key elements from falling through the cracks, companies must define objectives and data requirements, maintain strong communications, and develop both short-term and long-term expectations.

The next step – analysis – since data is absolutely essential in mergers and acquisitions. There is a lot to watch out for: What's the best way to extract and convert the acquired data? Will IT or business support need to be permanently added? What system configuration changes are required? What are the impacts to current business processes and internal audit controls? Will additional training be required? The answers to these questions are highly individualized to each merger and acquisition, and they'll impact how seamless the transition will be. Many people gloss over this stage but then realize the criticality not only in the case of a merger or acquisition but also in the case of a future divestiture.

Finally, the last stage: Execution. This stage is one of the main reasons why some mergers and acquisitions may fall short of expectations. To avoid common issues stemming from poor execution – including disruption of previously effective business processes, impaired customer service, and increase in the cost of the merger or acquisition – we coordinate roles and responsibilities, ensuring that all key tasks are executed. From day one to full integration, we continually monitor to ensure the company is on track to meet its initially defined objectives.

The risks and benefits of a merger or acquisition

I'll be candid: Without a solid foundation through adequate preparation, a merger or acquisition is set up to fail. This risk can be higher for startups and small companies, which don't have the resource buffer that some larger firms can fall back on. Large companies may face a different risk, business processes and data may not be aligned with their current state. And yet, according to Economy Watch, an extensively strategized merger or acquisition transaction, beyond increasing the company's size, can yield significant benefits that include:

  • Improving its strategic position
  • Entering a new market
  • Developing new assets
  • Lowering operational costs
  • Expanding market influence

For smooth mergers and acquisitions, we recommend a multi-step process so that you can identify and reduce risks, condense your integration timeline, and quickly capture value. Because despite the challenges, not all is lost during a merger or acquisition – and there is much to be gained.

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Elizabeth Gerbel is the CEO and founder of Houston-based E.A.G. Services Inc.

Houston-based SnapStream's CEO, Rakesh Agrawal, is the third guest on the Houston Innovators Podcast. Courtesy of SnapStream

Software entrepreneur, investor announces new service and shares why he's bullish on Houston innovation

Houston innovators podcast episode 3

With a couple decades in the Houston innovation ecosystem under his belt, Rakesh Agrawal considers himself an optimist about his city.

Agrawal founded his company SnapStream — a software company that allows its clients to easily record, search, and share video and broadcast content — in 2000 and has gone on to not only grow and expand the company, but also create a portfolio of software startups as an investor.

In the third episode of the Houston Innovators Podcast, Agrawal shares how he's seen the city's innovation ecosystem evolve to what it is today — admittedly, he has a very positive outlook on the city. However, if he had to identify something Houston needs to work on, its communication.

"A lot of people go to this question of, 'What's wrong with the Houston ecosystem?' If there's anything that's a fundamental characteristic of Houston that we need to change that would really help the startup and innovation ecosystem is that often in Houston, the left hand doesn't know what the right hand is doing," Agrawal says on the podcast.

Agrawal says that one of the indicators of the city's success in cultivating startups is his own portfolio. About a quarter of the companies he's invested in are based in Houston.

Recently, Agrawal pulled back some of his investing activity to focus on SnapStream. The company was named the transition partner for Volicon Observer, a company Verizon brought under its umbrella and then changed its mind about, Agrawal explains in the episode.

Volicon's specialty is in monitoring and compliance, and with that move, SnapStream brought on around 150 new clients. To maintain those clients and grow its services, SnapStream has rolled out a whole new department. The launch of SnapStream Monitoring and Compliance is the next step for SnapStream's takeover of Volicon, according to a news release.

"The SnapStream Monitoring and Compliance launch builds on our depth of experience and extends SnapStream into an exciting new market," says Agrawal in the release. "The amazing SnapStream team is what differentiates us — from our engineers, who build user experiences that save our users time, to our support team, who deliver on a high standard for responding to customers and resolving issues, to our customer success team, who deliver the best onboarding experience."

Agrawal discusses the transition, his investment activity, and more in the episode. Listen to the podcast below and subscribe wherever you get your podcasts.


From oil and gas to space technology, these leaders are pushing forward innovation in Houston. Courtesy photos

3 Houston innovators to know this week

Who's who

One thing this week's movers and shakers in the Houston innovation ecosystem have in common is their intention to disrupt an industry using technology. Here are this week's innovators you need to know in Houston.

Francois Laborie, general manager of Cognite North Americas

Courtesy of Cognite

When it comes to data, most energy companies are squandering valuable information by not properly using their data. Cognite, which has its US headquarters in Texas, has solutions, says general manager of the company, Francois Laborie.

"Standardizing APIs across the oil and gas industry would open the door to a community of developers, which could create custom applications and connect existing market solutions," he writes in a guest column for InnovationMap. "Then more new and exciting applications and services would reach the market faster."

Click here to read Laborie's article on the importance of APIs and data management.

Steven Gonzalez, technology transfer strategist at NASA

Courtesy of NASA

Houston is the Space City — present tense. While the city has a rich history as a major player in aerospace exploration and engineering, Houston is far from done, Steven Gonzales, NASA technology transfer strategist, tells InnovationMap.

We've always been the Space City, but for a while there, it was taken for granted. It's part of our history, but it's nice to see it brought back into the foreground to realize that it's not just history, it's who we are today.

Click here to read our Space City Month feature on Gonzalez in which he explains Houston's future in space and how NASA wants to work with startups.

Christine Galib, program director of The Ion Smart Cities Accelerator

Courtesy of Station Houston

Christine Galib has a new gig in town. The former Rice University and St. Thomas University educator is now the program director of the Ion Smart Cities Accelerator, a program that will find and grow startups with solutions to Houston's biggest problems.

"When we look at The Ion being created as a center for entrepreneurship and innovation in Houston, there's no other city in the world has this type of level of collaboration and transparency of major players in the innovation space coming together to create, not only the physical space, but also the programming and mindset and the environment and the culture to sustain it," she tells InnovationMap.

Click here to read more about Galib and what she's excited to bring to town.

From smart home technology to higher education institutions, these leaders are pushing forward innovation in Houston. Courtesy photos

3 Houston innovators to know this week

Who's who

Another week, another set of Houston innovators to keep your eye on. This week's edition crosses retail technology with higher education — both on this planet and beyond.

From tech that's orbiting the planet to tech that's in your very home, here are the Houston-based innovators to know.

Leah Barton, North American commercial director for Hive

Leah Barton oversees Hive's growing North American efforts from the Houston office. Courtesy of Hive

United Kingdom-based Hive, a smart product company, has bet on Houston as its battle ground for growth in the United States. The company recently tasked Leah Barton as North American Commercial Director to serve in the Houston office as of June 2019 and focus on this growth. Barton tells InnovationMap that she feels Houston is increasingly becoming an innovation hub.

"We know we've got the technical talent, we've got people who are interested in technology, whether it's from the medical angle, energy angle, aerospace angle," she says. Continue reading the story about Hive and Barton's plans for expansion by clicking here.

David Alexander, director of the Rice University Space Institute

David Alexander of the Rice University Space Institute says Houston's past accomplishments in space aren't all the Space City has to offer. Photo courtesy of Rice University

For David Alexander, director of the Rice University Space Institute, Houston's role in space exploration is far from over. In fact, even though it's been 50 years since Neil Armstrong phoned home to Houston from the moon, he argues that this moment is not all the Space City has to celebrate.

"In Houston, we tend to think of space as a destination, but it really is a resource," he says. "And we need to be thinking about it as a resource." Read the complete interview with Alexander by clicking here.

Paul Pavlou, dean of C. T. Bauer College of Business at the University of Houston

Paul Pavlou has been named as the dean of C. T. Bauer College of Business at the University of Houston. Courtesy of UH

Success is in the details for this new University of Houston C.T. Bauer College of Business dean, Paul Pavlou, who began his UH career earlier this month. Pavlou has a passion for higher education and the doors it has opened for him.

"My life was transformed by higher education," Pavlou says. "So, I feel the need to give back in terms of helping other students — especially of modest means like myself to do well in life and get a good job."

Pavlou has multidisciplinary efforts on his mind, as well as data and technology integration within the school's programs. To read more about Pavlou, click here.

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This Houston virtual health care platform makes it easier to get answers

digital check up

As hard as he tried, Brigham Buhler couldn't achieve the weight-loss and fitness goals he'd set in his mid-20s. Plus, he constantly felt tired and stressed out. On top of that, Brigham's entire immediate family has diabetes, and he was exhibiting the warning signs.

Buhler's nutritionist recommended he get his hormones checked. It wound up taking three months to get an initial appointment with a urologist, who then recommended a comprehensive blood test.

The blood work revealed that he did, indeed, have a hormone deficiency. Subsequent hormone treatment, in addition to taking vitamins and supplements to combat various risk factors, got Buhler's endocrine system back on track.

Born out of that frustrating situation and spurred by his more than 15 years in the medical-device industry, Buhler launched Houston-based Ways2Well in 2018. Propelled by a virtual health care platform, the company envisions a better way to treat patients by challenging the traditional health care model.

"While most virtual health care providers focus on sick care — treating patients experiencing symptoms that indicate sickness — Ways2Well is focused on preventative health care," says Buhler, a graduate of the University of Houston.

Through his own patient journey, Brigham Buhler saw a need for Ways2Well to exist. Photo via ways2well.com

Here's how Ways2Well works.

A patient visits the company's website to schedule a blood analysis at a Houston-area location of Quest Diagnostics. (Each year, Quest Diagnostics serves one-third of American adults and half of U.S. physicians and hospitals.)

Before the lab work, the patient discusses health concerns and wellness goals through a virtual appointment with a Ways2Well nurse practitioner.

Once the blood analysis is done, the nurse practitioner reviews the test results during a virtual appointment. The practitioner pinpoints underlying causes of chronic symptoms and potential risks for major conditions like heart disease, cancer, and diabetes. Those three ailments are the main drivers of the $3.5 trillion in annual health care costs racked up in the U.S. Ways2Well strives to reverse the symptoms of these and other chronic illnesses.

Finally, the nurse practitioner shares lifestyle or dietary changes that can reduce the likelihood of developing chronic diseases.

"Our online platform allows you to manage your health care journey from the convenience of your home or office, as long as you have access to a computer or phone and internet," Ways2Well says on its website.

Ways2Well charges nothing for a patient's initial 15-minute consultation. The blood analysis costs $299; Buhler says it goes well beyond what primary care doctors normally offer. The review of the blood analysis costs $120. Follow-up appointments cost $60 each. Neither Ways2Well nor ReviveRx accepts health insurance. However, an insurer might reimburse some out-of-pocket expenses.

The Ways2Well clinical team can prescribe medication, hormone therapy, prescription-grade vitamins and supplements, and other remedies through Ways2Well's partner pharmacy, ReviveRX. Ways2Well and ReviveRx occupy offices in the same building.

Typically, health care providers and pharmacies don't collaborate that closely on patient care. "Ways2Well is bridging that gap to offer better treatment to our patients," Buhler says.

Although ReviveRx is a full-service pharmacy, it doesn't operate like retail pharmacies such as Walgreens and CVS. Rather, patients are referred directly to ReviveRx by Ways2Well or Houston health care providers.

Today, Ways2Well focuses on the Houston market. But Buhler says the 12-employee, self-funded startup aims to expand to other Texas markets, such as Austin, Dallas-Fort Worth, and San Antonio.

"Because Ways2Well is a virtual health care provider that offers appointments via video conferences and leverages the Quest Diagnostics network for blood analysis, Ways2Well can treat patients from anywhere in Texas," he says. "Ultimately, the goal is to make Ways2Well available nationwide, with a team of clinical experts across the U.S."

5 Houston entrepreneurs to know this Veterans Day

American heroes

Over a quarter of a million United States military veterans call Houston home, and that number is growing.

"Houston has the second largest and fastest growing veteran population in the country," says Reda Hicks, a Houston entrepreneur and military spouse herself. "That's a very significant chunk of our city to share an affinity, and it's not something Houston has talked about."

For its large veteran population, Houston was selected in January 2018 as the third location to set up a chapter of Bunker Labs, an acceleration and incubation organization for military-affiliated entrepreneurs.

"Our whole goal is to help empower military-affiliated people to start and grow businesses," says Hicks, who is one of the Houston leads for the program, a lawyer, and the founder of GotSpot Inc.

The program provides resources for veterans, military spouses, or anyone whose lives were affected by a family member in the military. Bunker Labs provides a digital platform for early-stage ideas called Launch Lab that's used by hundreds annually, and also has face-to-face programming through its Veterans in Business program hosted through WeWork.

"It can be the case that veterans can feel siloed, and it's wonderful to have those people around you who can really understand you, but for businesses to grow, they have to really understand the ecosystem they live in," Hicks says.

In honor of Veterans Day, here are a few Houston veteran entrepreneurs to know.

Dyan Gibbens, founder and CEO of Trumbull Unmanned

Dyan Gibbons

Dyan Gibbons translated her Air Force experience with unmanned missiles into a drone services company. Courtesy of Alice

Dyan Gibbons found her dream career in the United States Air Force Academy. She served as engineering acquisitions officer managing stealth nuclear cruise missiles, and even went on to supported Air Force One and Global Hawk UAS engineering and logistics. After her years of service, she transitioned into the reserves, when she discovered she was ineligible to serve again. She went back to the drawing board to recreate herself — this time, as an entrepreneur.

She went into a doctorate program — she already had her MBA — and was close to finishing up when her drone startup took flight. Trumbull Unmanned provides drone services to the energy sector for various purposes. With her experience as a pilot and managing unmanned missiles, she knew the demand for drones was only growing — and, being from Texas, she knew what industry to focus on.

"I wanted to start a company that uses unmanned systems or drones to improve safety and improve the environment and support energy," Gibbons tells InnovationMap in a previous interview.

Nicole Baldwin, chief visionary officer and founder of Biao Skincare

Nicole Baldwin

Photo via toryburchfoundation.org

Before founding her tech-enabled, all-natural skincare line, Biao, Nicole Baldwin served in the Army Civil Affairs Units and was deployed to Bagram, Afghanistan. In honor of Veterans Day, she shared on Facebook an image of her with young girls outside the compound she lived in.

"I often tell people not to thank me for my service, because I don't feel like I should be thanked for doing something I genuinely wanted to do," she writes in the post. "I am grateful every moment of my life knowing that I did all the things in and out of uniform that was felt from the heart."

Baldwin's company, which uses a skin-scanning technology has taken off, and she's participated in Houston's Bunker Labs programming, and she has also been a Tory Burch fellow and appeared on Shark Tank.

Brett Rosenberg, founder of Semper Fi Systems

Photo via LinkedIn.com

Brett Rosenberg spent a few years in the U.S. Air Force before he took his experience from national security to a different kind of security.

Rosenberg's startup is another one utilizing the resources of Houston's Bunker Labs. Semper Fi Systems takes information security experts' knowledge and machine learning solutions to optimize cybersecurity and avoid regulatory financial exclusion.

Nathan Wilkes, CEO of Guidon Holdings

Photo via LinkedIn.com

After four years in the U.S. Army based in Georgia, Nathan Wilkes enrolled in business school at Texas A&M University. It was during the program when he founded Guidon Holdings, a Cypress-based aggregates company that — through screening, washing, separating, clarifying, and much more — can turn a natural resource that is considered waste into something of value.

Wilkes is also a West Point Academy graduate and a member of the 2019 Bunker Labs Houston cohort.

Tim Kopra, partner at Blue Bear Capital

An U.S. Army vet, Tim Kopra spent over 244 days in space, and now he's using his tech background to invest in emerging energy companies. Courtesy of Tim Kopra

Before he spent a career total of 244 days in space, Tim Kopra first served his country in the United States Army. Nowadays, he serves the Houston innovation ecosystem as an investor and adviser to startups and entrepreneurs in the energy tech industry.

As a partner at venture fund Blue Bear Capital, Kopra uses his experience in the Army and in space to do figure out if entrepreneurs have what it takes to go the distance and if their technology is worth investing in.

"On face value, it may sound like an odd match, taking someone with a tech and operational background and putting them in venture, but quite frankly it feels very familiar to me because my career has really been focused on working on complex technology and operations with very small teams," tells InnovationMap in a previous interview. "It's not just a theoretical understanding of the technology, but understanding how to use the technology and how it works."

Here's how Houston hospitals stack up when it comes to safety, according to a national study

Best in class

Close to half of the Houston area's general acute-care hospitals are at the top of their class, according to new safety grades assigned to U.S. hospitals. But one hospital in the region is failing on the safety front, the grades show.

In its fall 2019 report card for acute-care hospitals, The Leapfrog Group gives letter grades of A, B, C, D, and F based on the hospitals' ability to shield patients from avoidable errors, injuries, accidents, and infections. The nonprofit represents hundreds of public and private employers that buy healthcare benefits.

In the Houston area, 19 hospitals earned an A, with 14 receiving a B, seven getting a C, one picking up a D and one being slapped with an F.

Chris Skisak, executive director of the Houston Business Coalition on Health, notes that 23 percent of hospitals in the Houston areas saw their Leapfrog grades go up while just 11 percent saw their grades go down. The coalition is a regional leader for The Leapfrog Group.

"Houston-area hospitals do care about their grades," Skisak says, "and going back to 2016, most obtained a higher grade after receiving a lower grade the previous assessment period. Houston is fortunate to have [about] 50 percent of its hospitals earn consistent A grades."

For the first time in at least four years, The Leapfrog Group did hit one Houston-area hospital — Huntsville Memorial Hospital — with an F. On the spring 2019 report card, the hospital received a D. In the fall of 2018, the mark was a C.

Huntsville Memorial Hospital currently is combating what's been described as a "dire financial situation."

In a November 1 statement, the Walker County Hospital District, which owns the Huntsville hospital, said the separate nonprofit entity that runs the hospital — Walker County Hospital Corp. — was beset by monetary woes and was on the verge of declaring Chapter 11 bankruptcy. As a result, the district warned, the hospital might close.

According to The Huntsville Item, a proposed rescue of the hospital would place ownership and management in the hands of a joint venture between the hospital district and Plano-based Community Hospital Corp., a hospital management company. The nonprofit Plano company provides supply-chain services to a Huntsville medical practice, Huntsville Orthopedic Surgery and Sports Medicine PLLC.

In the statement, the district's board says it "remains committed to maintaining a viable hospital for the community and to improving hospital operations and services."

The Leapfrog Group graded a total of 42 hospitals in the Houston area. The nonprofit released its fall 2019 report card on November 7.

Houston-area hospitals that earned an A were:

  • Houston Methodist Baytown Hospital
  • HCA Houston Healthcare Conroe
  • HCA Houston Healthcare West
  • Houston Methodist Hospital
  • Houston Methodist West Hospital
  • Houston Methodist Willowbrook Hospital
  • Memorial Hermann Southeast
  • Memorial Hermann Southwest Hospital
  • Memorial Hermann Northeast, Humble
  • Memorial Hermann Katy Hospital
  • HCA Houston Healthcare Kingwood
  • CHI St. Luke's Health Memorial Livingston
  • Houston Methodist Clear Lake Hospital in Nassau Bay
  • HCA Houston Healthcare Pearland
  • Houston Methodist Sugar Land Hospital
  • CHI St. Luke's Health The Woodlands Hospital
  • Houston Methodist The Woodlands Hospital
  • Memorial Hermann The Woodlands Hospital
  • HCA Houston Healthcare Clear Lake in Webster

Skisak says the Leapfrog report card "is a valuable resource for employers to share with their employees so that they can self-navigate to the safest and highest quality hospitals."

"The Leapfrog Hospital Safety Grade offers critical patient safety information to consumers, in an easily digestible way, so that they can make informed decisions about where they seek care in the Houston area," he says in a release.

The Leapfrog Group bases its twice-a-year grades for hospital safety on 28 sets of publicly available data from more than 2,600 U.S. hospitals.