153 Posts Found

When you are selling part of your company, don’t just offer buyers a potential asset; give them the capabilities to gain value from it.

Content: Article | Authors: Ahmad Filsoof, Eduardo Alvarez, Steven Waller | Source: strategy+business | Subject: Mergers & Acquisitions

Mergers and acquisitions can be a potent path to growth. Yet implementation complexities and the lure of immediate cost synergies often take precedence over formulating, isolating and tracking revenue metrics and growth efforts. Cost reduction goals can even conflict with revenue growth opportunities. An analysis of 100 deals with growth as the stated goal suggests a set of priorities that can produce better outcomes.

Content: Article | Authors: Iain Bamford, Jessica Fleming Kosmowski, Nik Chickermane | Source: Deloitte Review | Subject: Mergers & Acquisitions

Despite the growing volume of studies purporting to show that most M&A deals fail to create shareholder value, companies seem unable to resist the urge to merge. It’s all too easy to succumb to the allure of an apparently game-changing deal. A new study from A.T. Kearney offers insights that might make the most gung-ho growth strategist flinch, but also suggests ways that companies bent … [ Read more ]

Content: Article | Author: John Cummings | Source: Business Finance Magazine | Subject: Mergers & Acquisitions

Companies often struggle to capture the full value of a separation. Here’s how to do better.

Content: Article | Authors: David Fubini, Kim Thomas, Michael Park | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

What brings repeated success in mergers and acquisitions? What ensures that IT does not cause a deal to falter? A playbook that makes IT integration faster, better, and future-proof.

Content: Article | Authors: Charles Hughes, Farhan Mirza, Shubradeep Ghosh | Source: Kearney | Subjects: IT / Technology / E-Business, Mergers & Acquisitions

Multinationals creating partnerships with Chinese companies can adopt eight best practices to help manage the unique complexities they often encounter.

Content: Article | Author: John Jullens | Source: strategy+business | Subjects: International, International – China, Mergers & Acquisitions

In the world of mergers and acquisitions, emphasis is often placed on evaluation metrics that look as if they tell the story, but they can be misleading.

Content: Article | Authors: Angus Hodgson, Phil Dunne | Source: Kearney | Subjects: Finance, Mergers & Acquisitions

Curves are magnificent things. Think of the Jaguar E-Type, the Sydney Opera House, or a Coca-Cola bottle. Mergers have curves too. Synergy curves. They reveal the measure of attractiveness of the deal, either up front as part of a due diligence exercise or when evaluating the deal’s ultimate success.

Content: Article | Authors: Angus Hodgson, Phil Dunne | Source: Kearney | Subject: Mergers & Acquisitions

The conventional wisdom that most acquisitions destroy value might be obsolete. Our latest research shows M&A success rates have climbed, and that top-quartile performers—and often even median ones—can create substantial amounts of shareholder value in any industry or region, at any point in the economic cycle.

Content: Article | Authors: Ryan McManus, Thomas J. Herd | Source: Outlook Journal (Accenture) | Subject: Mergers & Acquisitions

The conventional wisdom [on mergers and acquisitions] has crystallized into “buyer beware,” which is certainly not bad advice but not particularly helpful. (When would one ever think it is good not to beware?) Research on the topic is largely consistent with this view, observing that acquirers, on average, earn about the going rate of return on their investments but are subject to wide variation, sometimes … [ Read more ]

Content: Quotation | Authors: Michael E. Raynor, Mumtaz Ahmed | Source: Deloitte Review | Subject: Mergers & Acquisitions

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These [research] findings are in many ways consistent with both the conventional wisdom and the academic research on M&A. It is not uncommon to hear the refrain that acquisitions—especially larger ones—are systematically associated with lower profitability and lower shareholder returns for the acquiring firm. What we observe is that triple crown winners generate a mere 7 percent, on average, of their lifetime growth from M&A, … [ Read more ]

Content: Quotation | Authors: Jeff Schulz , Michael E. Raynor, Mumtaz Ahmed, Ragu Gurumurthy, Rajiv Vaidyanathan | Source: Deloitte Review | Subject: Mergers & Acquisitions

Both international joint ventures (IJVs) and acquisitions facilitate the entry of companies into new markets and business domains. They also expose firms to significant risk. How do executives weigh decisions about which governance approach is best, particularly in emerging markets like China where information may be limited? A team of professors led a study to better understand how to make these strategic decisions.

Content: Article | Source: IESE Insight | Subjects: International, Mergers & Acquisitions, Strategy

What characteristics do successful “serial acquirers” often share? One is the vital role of the finance function in post-merger integration. Following a survey of executives at merger and acquisition (M&A)-focused companies in 12 countries and 21 industries, Accenture identified five critical M&A attributes, each of which demands top performance from finance people and systems.

Content: Article | Authors: Aneel Delawalla, Jeff Bezos, Jeff East, Oksana Kukurudza, Sara Cima | Source: Accenture | Subjects: Finance, Mergers & Acquisitions

Mergers and acquisitions is an art, a science and, ideally, a structured corporate discipline characterized by repeatable methodologies, strong governance, formal metrics and specialized skills. Results of an Accenture study reveal how 110 of the world’s most successful “serial acquirers” use mergers and acquisitions to strengthen growth and increase profitability.

Content: Article | Authors: Artur Meinzolt, Hans Langthaler, Mirko Dier, Moritz Kübel | Source: Accenture | Subject: Mergers & Acquisitions

Mergers can be a great way to raise efficiency and access new markets. But if even temporary problems occur (e.g., quality dips, stock-outs, service glitches), mergers can quickly become a way to lose customers. To avoid such problems, a growing number of merger-minded companies are using analytics.

Content: Article | Authors: Brendan Dugan, Bruce Kiene | Source: Accenture | Subject: Mergers & Acquisitions

A new study of inorganic growth shows that deals made to enhance or leverage the things that companies do well consistently outperform others.

Content: Article | Authors: Cesare R. Mainardi, Gerald Adolph, J. Neely | Source: strategy+business | Subject: Mergers & Acquisitions

HBS professor Matthew Rhodes-Kropf sets out to discover why public companies dominate some M&A waves while private equity firms win others.

Content: Article | Author: Kim Girard | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Finance, Mergers & Acquisitions

Companies that do many small deals can outperform their peers—if they have the right skills. But they need more than skill to succeed in large deals.

Content: Article | Authors: Andy West, Robert Uhlaner, Werner Rehm | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

How does one define M&A success? Chief Executive reached out to two respected corporate performance consultancies—EVA Dimensions and Applied Finance Group—and put the question to them. Each came up with what they consider to be the truest test of a flourishing or regretful M&A transaction. The firms applied their metrics to six M&A deals, analyzed in full on the following pages.

Content: Article | Author: Russ Banham | Source: Chief Executive | Subject: Mergers & Acquisitions