If you pursue acquisitions, there is a high chance of failure. That sound harsh, but about 70% of all mergers and acquisitions fail. Deals fall apart before the transaction closes, suffer integration issues post-closing, or simply do not yield the return on investment that was expected. Think about the disastrous “merger of equals” between AOL …
Tag: acquisition mistakes
Are Sunk Costs Driving Your Acquisition?
You’ve spent a lot of time, energy and money on an acquisition…but should you still go through with it? In answering this question, it can be tempting to cite the amount of resources that have already been invested as reasons to follow through with the deal, but this would be a mistake. These sunk costs …
Pfizer and Allergan Break Up: Lessons in Staying Ahead of M&A Hazards
Pfizer and Allergan have announced that they are abandoning their $160 billion merger. This resulted from a political storm around tax inversions, a technique whereby US companies relocate abroad to avoid the high US corporate tax rates. The Treasury department took action to insert new rules that effectively killed the financial benefits of the deal. …
Top Mistake Leaders Make When Pursuing M&A
Many leaders take a reactive rather than proactive approach when it comes to M&A. They often realize that their organic growth is stagnant and they’ve got some money they can leverage, so they decide to make an acquisition. What do they do? They go find for-sale companies or respond to those that have found them. …
Five Common Mistakes Made During an Acquisition (And How You Can Avoid Them)
About 77% of company acquisitions fail. Don’t let that number scare you off from an acquisition. Based on my observations as an M&A consultant, I’ve found most acquisitions fail due to widespread misunderstandings of the process. Head over to the ACG National Capital Blog to read my list of some of the most common mistakes …
