The M&A Maze:Showing Employees and Investors the Way
- Topics:
- Mergers
- Tags:
- Acquisition,
- Boston Consulting Group Inc.,
- Business Operations,
- Corporate Law,
- Finance,
- Investment,
- Investor,
- M&A,
- Mergers & Acquisitions
- Source:
- The Boston Consulting Group
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Overview: "There are many reasons, of course, why acquisitions can fail to add value: overly optimistic valuation of potential cost and revenue benefits, exorbitant acquisition premiums, the inability to mesh different systems and corporate cultures, even old-fashioned burnout, which can set in before integration has a chance to gel. The heart of the matter, however, and a prime reason why many mergers and acquisitions hurt value, is that they involve significant, fundamental change. There is change in the way the new entity does business, in the way employees think, behave, and interact, and in the way investors perceive the merged company’s prospects. Managing these changes requires extreme sensitivity to emotional and behavioral issues and a willingness to address them and is every bit as critical to a successful acquisition as are a good business fit, thorough due diligence, and wellplanned implementation. "
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Format: PDF | Size: 118KB | Date: Feb 2003 | Pages: 11
