Seven Mistakes that will ruin your Acquisition - intro

(based on true stories)

Mergers and Acquisitions (M&A) has been and still is, the growth and diversification strategy by excellence every time a company has decided to accelerate their access to a new market, a product, technology, know-how, or even “feet on the street” as opposed to adopting an “organic” strategy.

Many companies count with their own specialized M&A organizations, which focus on the identification, assessment, valuation, negotiation, due diligence and closing of their mergers and acquisitions.

Significant resources are dedicated to the execution of an acquisition. Typically, it all starts with a solid Strategic Plan that will have identified an acquisition as the right thing to do to achieve a certain strategic goal. The target companies are selected following a set of specific criteria that will point to the best acquisition candidates. Then a rigorous process is followed till the acquisition closes.

Given the amount of planning, resources, analysis, assessment and reassessments, due diligence, synergies stress testing, board reviews, and integration plans, one would think that the probabilities of success for any given acquisition would be higher, at least proportionate to the time, effort, talent and money invested in the operation. Now, assuming that the Harvard Business Review report is accurate, between 70 to 90 percent of acquisitions fail.  So, how come so many of these transactions, which were so thoroughly planned, analyzed, scrutinized, critiqued, vetted by analysts, and consultants, then approved by the CEO, and by the board of directors after further review, then fail? How is that even possible? Well, it is very possible. I have been part of great and not so great acquisitions myself, and I have learned firsthand what can make or break one of these. Through my years of experience, I have learned how to execute successful acquisitions that actually deliver value on the business case, and I have identified Seven Mistakes that buyers must avoid in order to prevent a failed operation. (more to come)

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