Long before the ink dries on the legal agreement to acquire a company or to merge two entities, the integration strategy should be clear, but the timing can be tricky. Attempting to fill in the details too soon can take eyes off the integration. When that happens—often in response to pressure from investors, analysts, andRead more
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Most parent companies conscientiously concentrate on the integration of business systems but ignore a more important part of the transaction—the assimilation of people. Frequently, they concentrate on retaining a few key individuals but give little attention to what will happen to the others. A year or two after the close, decision-makers frequently realize they shouldRead more
When companies merge or acquire, stakeholders expect that the whole will be greater than the sum of its parts. Unfortunately, this happens less than half the time. Not only does one plus one not equal three; too often it results in losses. A once-exceptional organization can quickly take a turn toward mediocrity, or worse. HelpingRead more
Evaluation in the M&A process—appraisal, valuations, and assessment of the target and acquiring companies—should happen at each turn: before, during, and after the decision to acquire. Evaluation has neither a “start” nor a “start date.” Rather, it involves a circular, continuous process of reevaluating new information as it becomes available and reassessment of existing dataRead more
Some experts refer to “incompatible business models” undermining a merger or acquisition deal, but what does that really suggest? It means that when companies make money in vastly different ways, doing extremely different things, and no one recognizes or addresses these differences, the merged company risks destabilization. While decision-makers should consider the mission, vision, andRead more
