152 Posts Found

Very often when you say the word “culture” or the words “culture clash” in the context of mergers and acquisitions, companies or people will say, “We both wear jeans to work and have beer at the end of the day on Friday,” and then they say, “Our cultures are the same, therefore things will be fine when we do mergers and acquisitions.” That’s a completely … [ Read more ]

Content: Quotation | Author: Emilie Feldman | Source: Knowledge@Wharton | Subjects: Culture, Mergers & Acquisitions, Organizational Behavior

On [M&A] expectations, the problem lies with revenue synergies much more so than cost synergies. One study concluded that on average, the realization rate of cost synergies was somewhere between 60% and 90%. But the realization rate for revenue synergies was between 15% and 30%. It’s more straightforward to realize cost synergies — to gain efficiencies, to consolidate. So, companies tend to be much more … [ Read more ]

Content: Quotation | Author: Emilie Feldman | Source: Knowledge@Wharton | Subject: Mergers & Acquisitions

Mergers and acquisitions, though powerful tools for growth, often fall short of expectations. One reason is a lack of focus on the integration experience of acquired employees. While companies tend to invest heavily in pre-deal due diligence, they frequently overlook the day-to-day realities faced by incoming employees—who often feel undervalued, unsupported, and overwhelmed—ultimately threatening deal success, long-term productivity, and retention. These challenges are preventable through planning … [ Read more ]

Content: Article | Source: Harvard Business Review | Subjects: Culture, Mergers & Acquisitions, Organizational Behavior

Keeping top talent in the fold and engaged before, during, and after a large deal closes is critical for creating value from transactions. Here’s how to address their needs throughout the M&A phases.

Content: Article | Authors: Alex Hambrock, Emily O’Loughlin, John Chartier | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

In a divestiture, companies must overcome the complexities of disentanglement.

Content: Article | Authors: Anna Mattsson, Jamie Koenig, Tim Koller | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Every corporate merger is a leap into the unknown. But for leaders contemplating a megadeal, certain rules do apply. Here’s what CEOs need to know.

Content: Article | Author: Gren Manuel | Source: Boston Consulting Group (BCG) | Subjects: Best Practices, Mergers & Acquisitions

Top-notch deal teams collaborate with business units to identify targets, execute transactions, and expertly navigate a minefield of risks.

• BCG collaborated with global dealmakers to study the common hazards and success factors involved in setting up M&A organizations.
• We found that making the right choices in several key areas is essential for building effective teams.
• Companies must tailor their design choices across these topics, applying a detailed

… [ Read more ]

Content: Article | Authors: Anant Shivraj, Daniel Friedman, Daniel Kim, Jens Kengelbach, Maximilian Strauch | Source: Boston Consulting Group (BCG) | Subject: Mergers & Acquisitions

McKinsey findings bolster the case for programmatic M&A. But beyond doing more deals, what gives programmatic acquirers an edge—and how does their dealmaking translate to value creation?

Content: Article | Authors: Frederyk Schroeder, Jeff Rudnicki, Mieke Van Oostende, Tobias Lundberg | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Delayed and ineffective commercial integration can turn a good deal into a loser, because sales growth ultimately determines whether a merger achieves its value-creation goals. To create value, mergers need top-line gains: More sales to more customers, expansion into new territories or market adjacencies, new products and services to sell to existing customers. But compared to other areas of post-merger activity, the commercial engine starts … [ Read more ]

Content: Article | Authors: Erik Siegler, Jason McDannold, Natsuki Sato, Yale Kwon | Source: Harvard Business Review | Subject: Mergers & Acquisitions

Generative AI is already making its way into the day-to-day world of M&A, and more use cases are emerging. How should companies approach the opportunity?

Content: Article | Authors: Ben Ellencweig, Julia Berbel, Mieke Van Oostende, Rui Silva | Source: McKinsey Quarterly | Subjects: IT / Technology / E-Business, Mergers & Acquisitions

Several trends are creating a new imperative for strong portfolio management of businesses. Companies need six capabilities to build and manage a winning portfolio, using M&A strategically.

Content: Article | Author: Marc Augustin | Source: McKinsey Quarterly | Subjects: Mergers & Acquisitions, Strategy

Decades of research show the efficacy of programmatic M&A—and our latest findings make it even more clear. Whether external conditions are favorable or challenging, programmatic acquirers continue to invest in their M&A capabilities and demonstrably outperform companies that take a less strategic approach to M&A.

Content: Article | Authors: Cathy Lian, Patrick McCurdy, Paul Daume | Source: McKinsey Quarterly | Subjects: Best Practices, Mergers & Acquisitions

The huge impact of culture on M&A performance means that culture should be factored into integration planning from the start. We recommend focusing on five cultural attributes.

Content: Article | Authors: Emily O’Loughlin, Jocelyn Chao, Kameron Kordestani, Rebecca Kaetzler | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

What does it take to succeed in M&A? For the past two decades, BCG’s annual M&A reports have explored the answers to this question. One constant in our studies is an emphasis on the elements that drive genuine, long-lasting deal success.

To mark the 20th anniversary of our M&A Report, we looked back at our rich history of analyses related to deal value creation. We refreshed … [ Read more ]

Content: Article | Authors: Daniel Friedman, Dominik Degen, Georg Keienburg, Jens Kengelbach, Lianne Pot, Sönke Sievers, Tobias Söllner | Source: Boston Consulting Group (BCG) | Subjects: Best Practices, Mergers & Acquisitions

PE firms have shed old skin and in recent decades become bigger, smarter, and more relevant in M&A and markets than ever before, argues a new paper co-authored by Wharton’s Paul Nary.

Content: Article | Authors: Aseem Kaul, Paul Nary, Shankar Parameshwaran | Source: Knowledge@Wharton | Subjects: Finance, Mergers & Acquisitions

Companies can get their M&A act right if they pick their targets wisely, avoid overstating expectations of synergies, and manage cultural dynamics correctly, says Wharton’s Emilie Feldman.

Content: Article | Authors: Emilie Feldman, Shankar Parameshwaran | Source: Knowledge@Wharton | Subject: Mergers & Acquisitions

Programmatic M&A is making a series of acquisitions to support a single business theme or strategy. You might do one or two larger anchor acquisitions, then you would follow up with smaller ones to build out the business. The idea is that you develop capabilities to both identify acquisition targets and integrate them, so M&A is a capability in the same way that sales and … [ Read more ]

Content: Quotation | Author: Rebecca Doherty | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

If the time between the signing and close of M&A deals feels like it’s taking longer, it’s not just you. However, companies can use this time to their advantage. The M&A golden period provides an opportunity to prepare for the combination. In doing so, executives can better ensure a smooth transition and help the future entity be more successful.

Content: Article | Authors: Angus Hodgson, Han Liem, Pablo Morillo, Vincenzo Sposato | Source: Kearney | Subject: Mergers & Acquisitions

The most successful large-deal transactions follow four key practices during integration execution.

Content: Article | Authors: Alex Liu, Brian Dinneen, Christine Johnson | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Only about half of companies that undergo organization design during a post-merger integration say it was successful. Leaders can flip those odds by focusing on five imperatives.

Content: Article | Authors: Daniel Friedman, Lianne Pot, Mic Rosiello, Michele Brocca, Travis Meyer | Source: Boston Consulting Group (BCG) | Subject: Mergers & Acquisitions