Reorganizations can be a useful management tool for finding new value and are often essential as part of a merger or acquisition integration. Getting this type of reorganization right allows business units from the merging companies to be brought together smoothly, corporate activities to be standardized and streamlined, people to be aligned behind desired outcomes, and integration synergies to be delivered quickly. To help maximize … [ Read more ]
Twelve years of data shows that mergers and acquisitions that apply or enhance capabilities produce superior returns.
Seven strategies for managing the unique challenges of large technology acquisitions.
Focusing on targets that leverage one’s capabilities provides the greatest chance of M&A success. This is the main lesson that emerges from Strategy&’s most recent study on the role of capabilities in M&A success.
Mergers and acquisitions-well conceived and properly executed-can deliver greater value than ever right now. And savvy acquirers are taking action, as deal activity accelerates amid signs of recovery.
Joint ventures can be an effective way to enter new markets, gain expertise, increase production capabilities, and expand distribution. Given these potential benefits, it’s no wonder that these partnerships have regained popularity. But despite their advantages, they often fail to deliver value. BCG’s research into what it takes to succeed revealed eight important lessons.
When a merger or acquisition unexpectedly heads south, the costs are painfully clear. Morale drops. Synergies fail to materialize. Key people—those you planned to keep—start heading for the exits. But what’s really going on? Why is the system suddenly failing?
A likely cause of the trouble is culture clash. Acquirers have well-developed toolkits for managing the financial and operational aspects of a deal; they track results … [ Read more ]
The key to postmerger revenue lies in holding onto your best salespeople.
An integration manager can help make a merger more successful, but only if the top team knows how to choose and install one.
In a merger or acquisition, brands sometimes become one, but often remain separate. How should leaders decide which way to go?
The open secret about M&A is that most deals fail to generate the synergies companies expect when they announce a merger. In a Bain & Company survey of 352 global executives, overestimating synergies was the second most common reason for disappointing deal outcomes. We took a hard look at synergies in M&A to understand what the best companies do when estimating, announcing and pursuing them. … [ Read more ]
Acquisitions too often fall short of their promised payoffs, and a frequent culprit is inadequate integration. Execution falters as people struggle under time pressures and lose sight of priorities. By investing in the underlying integration capabilities, companies can bring discipline and focus to their efforts to capture value from deals.
Post-merger integration (PMI) is rarely straightforward, but most businesses find ways to make it slower, less effective and more expensive than it needs to be. The goal of PMI is to get the reconfigured company back in the marketplace as quickly and effectively as possible—doing business in the ways the deal envisioned. That goal faces two deadly enemies: uncertainty and an excess of process and … [ Read more ]
The due diligence phase of a merger or acquisition is critical for corporations and private equity firms. However, the latter often manage due diligence more effectively. Corporations should consider studying private equity firms’ proficiency in areas such as predicting cash flow growth and objectively analyzing synergies.
Deal making has always been cyclical, but the historical success of M&A as a growth strategy comes into sharp relief when you look at the data. Bain & Company’s analysis strongly suggests that executives will need to focus even more on inorganic growth to meet the expectations of their investors.
When companies merge, they embark on seemingly minor changes that can make a big difference to customers, causing even the most loyal to reevaluate their relationship with the company. Numerous studies have found that more than half of all mergers fail to deliver the intended improvement in shareholder value. Customer defections contribute to that high failure rate. Integration decisions come with an inherent tradeoff: If … [ Read more ]
Ambitious companies drive consolidation in their industries—but how? Our Merger Endgame tool sheds light on the best ways to gain long-term growth and reveals strategies for winning the race.
Treating M&A as a strategic capability can give companies an edge that their peers will struggle to replicate.
Business executives involved in mergers or acquisitions face a full plate of prickly issues, from early due diligence to negotiating deal terms to organizational integration, including who ends up in the C-suite. However, one thing they typically don’t pay enough attention to is pricing strategy.
Active involvement can help companies capture more value—and develop a competitive advantage in deal making.