Mergers and acquisitions rarely create shareholder value. Why? There are three answers to this. First, organisations need to be clear about their strategic fit; very often they fail to realise that their capabilities and market segments do not match.
Second, the price paid is often too high in that potential gains are included in the bid; this frequently happens in a competitive bidding situation and executives often do not understand when they should stop pushing the price up.
Third, the change processes necessary to achieve successful integration are typically not identified up front, so even if there is a good strategic fit and a sensible price has been paid, the potential for value creation is not realised. All three aspects need to be got right.
- Strategic focus.
- Why mergers fail.
- Bid tactics.
- Due diligence.
- The concept of implementation.
- Project management of implementation.
- Developing the implementation plan.
- Executing the implementation plan.