Building the Right Organization for Mergers and Acquisitions

The internal organization that manages a company’s M&A processes has always been a major contributor to the success of its deals. Today, as companies increasingly choose to manage their M&A processes internally, without the support of financial advisers, it’s all the more important to have the right team in place. This team must not only be skilled at screening acquisition targets, conducting due diligence, and … [ Read more ]

How the Best Acquirers Excel at Integration

The same handful of integration challenges vex companies year after year. New survey data suggest how high performers stay on top.

A 5-Step Process for Reorganizing After a Merger

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 ]

Rebecca Doherty, Spring Liu, Andy West

Because there are often different owners throughout a company’s M&A process, it can be particularly tricky to put proper incentives in place for each one. So, incentives must balance the promotion of post-integration success with the successful execution of an individual’s role.

Marc Goedhart, Tim Koller, David Wessels

As an illustration of how executives get caught up in a short-term EPS focus, consider our experience with companies analyzing a prospective acquisition. The most frequent question managers ask is whether the transaction will dilute EPS over the first year or two. Given the popularity of EPS as a yardstick for company decisions, you might think that a predicted improvement in EPS would be an … [ Read more ]

Deals That Win

Twelve years of data shows that mergers and acquisitions that apply or enhance capabilities produce superior returns.

Let’s Megadeal

Seven strategies for managing the unique challenges of large technology acquisitions.

Gerald Adolph

If people come to you with vague words like attractive market and synergy, best practices and all of these kinds of things that you cannot reduce to leverage and enhancement, chances are you’re being dragged into a bit of an acquisition trap that might not play out the way you want.

Deals That Win

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.

David Harding and Hugh MacArthur

Too many executives treat diligence as an audit to confirm what they think they know, rather than a solution to the problem of “I don’t know what I don’t know.” The focus on getting the deal done leads to reliance on conventional wisdom that flows from off-the-shelf information or standard industry research. In fact, diligence is a critical step to test and quantify what seems … [ Read more ]

The 10 Steps to Successful M&A Integration

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.

Getting More Value from Joint Ventures

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.

Integrating Cultures After a Merger

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 ]

Merging? Watch Your Sales Force

The key to postmerger revenue lies in holding onto your best salespeople.

Sydney Finkelstein

In the constant push to get everyone going in the same direction on the job—an admittedly critical component of leadership—we’ve fallen into the trap of valuing alignment over insight. What’s the point of having everyone rowing in perfect unison if you’re going the wrong way?

Managing Your Integration Manager

An integration manager can help make a merger more successful, but only if the top team knows how to choose and install one.

Five Considerations for Managing Brands in M&As

In a merger or acquisition, brands sometimes become one, but often remain separate. How should leaders decide which way to go?

Why Some Merging Companies Become Synergy Overachievers

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 ]

Enabling PMI: Building Capabilities for Effective Integration

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.

Avoiding Discovernance: A Practical Approach to Post-Merger Integration

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 ]