Did you know about 97% of acquisitions are small to mid-sized companies? Acquisition is an effective tool that can be used by companies of any size, not just those in the Fortune 500. To see how, watch my interview with Matthew Lesko. When we think of mergers and acquisitions, we often only think of mergers …
Tag: M&A
Why Do Acquisitions Fail?
Acquisitions fail for reasons that range from lack of compelling strategic rationale to inadequate due diligence to conflicting cultures. I think many would say acquisitions fail because too much was paid for them. While overpaying is certainly a reason for failure, I would not say it is the top reason. In my experience, I have …
How to Increase Success of M&A
A recent Deloitte survey noted frequent misalignment between CFOs and company directors about the strategic rationale of M&A. The study concludes that CFOs and board members should align their M&A strategy for greater success. Naturally, I’m not surprised by these findings. The likelihood of successful acquisition would increase if all parties shared the same strategy. …
Top 5 Strategic Drivers of Oil and Gas M&A
Mergers and acquisitions in the oil and gas industry oscillated from a high of $84.8 billion in the first half of 2012 to just $51.5 billion in the first half of 2013. The total deal value for Q2 2013 was $23.6 billion, the lowest since Q3 2009. Expect a new swing given the rumors that …
Can We Expect More Private Equity Transactions?
Neiman Marcus has been sold by private equity groups TPG and Warburg Pincus for $6 billion to Canadian PE firm Ares Management and Canada Pension Plan Investment Group (CPPIB). TPG and Warburg filed for an IPO earlier this summer but kept their options open, Forbes reports. This transaction is not really surprising given the conditions …
In an Acquisition Process, the Buck Stops With You
As you go through the M&A process, you may find that advisors are both necessary and helpful to assist you. However, you must maintain your leadership role. I find that particularly toward the end of the acquisition process, executives imagine that they should hand the reins to a more “experienced” professional. This would be unwise. …
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 …
Five Pathways to Growth
As you focus your attention on the growth of your company, there are five key pathways to consider: Grow Organically Exit the Market Be the Low-Cost Provider Do Nothing Pursue External Growth Before you even start planning an acquisition, remember there are other growth options available. It is an important realization that you do have …
Seven Strategic Questions
Last week, I wrote about the importance of self-exploration. To begin your journey of self-exploration, here are seven strategic questions you may find helpful: 1) What business are we in? 2) What is our core competency? 3) What are we not? 4) Where is our pain? 5) What are our dreams? 6) What is our …
From Beginning to Beginning
When I am teaching M&A, I often use the phrase ‘‘from beginning to beginning.’’ I am signaling a difference from the more familiar phrase ‘‘from beginning to end,’’ which suggests that once the deal is signed, the process is over. In my experience, the end of an M&A transaction marks the beginning of a whole …
