Acquire more, fail less (ensuring that acquisitions are successful)
Article Type: Abstracts From: Strategic Direction, Volume 29, Issue 5
Ottinger R.Financial Executive, December 2012, Vol. 28 No. 10, No. of pages 5
Cites the claim by financial analysts that 70 percent of all mergers,acquisitions and other business partnerships end in failure, while management experts claim that 70 percent of all strategic initiatives fall short of their intended goals. Offers four causes for the failure of acquisitions, including:financial engineering issues; organization and culture issues; leadership issues; and strategic issues. Argues that acquisitions can be made to be successful by the use of a model that takes more of a strategic change acceleration approach to acquisitions than a mechanistic or financial engineering approach. Points to several key elements to a strategic change acceleration approach that is applicable to mergers and acquisitions (M&A),and a host of other business partnerships, including: alignment around a clear strategic plan (pre-acquisition); winning hearts and minds; engagement of a cross-functional integration team (post-acquisition); and adoption of a large-scale change framework. ISSN: 0895-4186 Article type: Viewpoint Reference:42AC362
Keywords: Company failures, Critical success factors, Mergers and acquisitions, Organizations, USA
