Saturday, August 1, 2009

Mergers and Acquisitions Execution - Avoid the Failure

Mergers and acquisitions are a prominent phenomenon in business. It provide additional growth and profit opportunities. Entrepreneurs also often use it as an exit strategy and it is crucial in determining their ultimate success and financial independence. Unfortunately things do not always go smooth in the execution of mergers and acquisitions and sometimes it is a complete failure.

Why mergers fail? Here are nine deadly sins of merger failure
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To Download the presentation, visit 9 deathly sins of merger failure

A successful merger and acquisition can be measured against two major factors:

  • Shareholders value increase. A sustainable increase in shareholders value should be achieved over time.
  • Synergies materialised. The achievement of expected synergies such as more efficient operations, increased profitability and an increase in market share.

A merger and acquisition is normally one of the most important strategies that a company will embark on. Unfortunately many mergers and acquisitions are failures (or at least in some aspect). One of the best ways to increase the chances of success is to plan properly for a merger and acquisition and to see it as a project and manage it in such a way. A merger and acquisition typically has all the important characteristics of a project - it is multidisciplinary, has specific objectives, is once-off and has time and budget constraints.

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