141 Posts Found

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

The success of serial dealmakers depends on how well their workforces can absorb and integrate new employees. Helping people embrace change eases this challenge and supports hypergrowth better. Here are four actions you can take today to get to that goal.

Content: Article | Author: Yaarit Silverstone | Source: Accenture | Subject: Mergers & Acquisitions

How corporate leaders can avoid value-destroying M&A.

Content: Article | Authors: Alastair Rimmer, Gregg Nahass, Hein Marais | Source: strategy+business | Subject: Mergers & Acquisitions

The right customer assessment not only reveals the strength of existing customer relationships, but also how primed they are for new business activity. This assessment should be standard practice for every M&A.

Content: Quotation | Author: Anson Vuong | Source: Gallup Management Journal | Subjects: Human Resources, Mergers & Acquisitions

Two decades of research show that, while large deals still have their place, programmatic M&A strategies continue to create gains in excess total returns to shareholders, at lower levels of risk.

Content: Article | Authors: Jeff Rudnicki, Liz Wol, Patrick McCurdy, Paul Daume, Tobias Lundberg | Source: McKinsey Quarterly | Subjects: Best Practices, Mergers & Acquisitions

Culture is important in all deal types but particularly when you bring two large groups of people together. Then, the potential friction would be much more visible. And you need to understand the culture of both companies. It is not enough to say, is the target company compatible with us? You need to understand it in a more nuanced way. What are their ways of … [ Read more ]

Content: Quotation | Author: Becky Kaetzler | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Designing, managing, and delivering a positive experience is especially important during the post-merger talent selection process—not only for employees offered positions but also for those not selected or who choose to leave. How the HR and integration teams treat the latter groups can have far-reaching effects on workplace morale and the company’s reputation as an employer of choice.

Content: Quotation | Authors: Becky Kaetzler, Jocelyn Chao, Laura Lynch, Natashya Lalani | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Retaining critical talent and ensuring the right people are in key roles are essential to a successful merger.

Content: Article | Authors: Becky Kaetzler, Jocelyn Chao, Laura Lynch, Natashya Lalani | Source: McKinsey Quarterly | Subjects: Human Resources, Mergers & Acquisitions

Industries consolidate faster when the share of fixed costs is high. Slow-moving industries are those with few physical assets, such as restaurants, craftsmen, and medical care. Industries moving at a medium speed include automotive, aluminum, and food. Fast-moving industries have the lowest variable costs and high asset intensity, such as software, telecom equipment, and search engines.

Content: Quotation | Author: Jürgen Rothenbücher | Source: Kearney | Subject: Mergers & Acquisitions

You need to understand the sources [of M&A revenue synergies], and there are three places we can categorize. One is where you sell. That includes new channels, cross-selling to existing customers, geography expansion. Then there is how you sell. This is where the sales force effectiveness or channel coverage matters. Then there is what you sell. Is the deal bringing new products or new bundles … [ Read more ]

Content: Quotation | Authors: Andy West, Jeff Rudnicki | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

As M&A activity heats up, new research highlights best practices for retention post-merger. The short answer? Plan to pay.

Content: Article | Authors: Claudia Poster, Kenneth Kuk, Steve Allan | Source: Chief Executive | Subject: Mergers & Acquisitions

How employee transition pools can generate serious benefits for companies—and reduce job losses—during mergers and other moments of transition.

Content: Article | Authors: Brent Ross, Laura Bowen, Rodey Wing, Steven Berger | Source: Kearney | Subjects: Human Resources, Mergers & Acquisitions