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Mergers and Acquisitions (M&A) Success Factors
Dave Carlson - February 21, 2013

  1. Measure M&A success based on the creation of competitive advantages and real shareholder value.

  2. Gain insights into industry challenges and future trends before pursuing a deal.

  3. Pass up acquisitions in non-related businesses.

  4. Understand the M&A process and clearly establish owners, deliverables, and timetables.

  5. Anticipate and focus on key M&A decisions.

  6. Drive every aspect of the M&A deal from senior leadership level.

  7. Be prepared to walk away from a deal that does not show potential.

  8. Choose strategic moves that strengthen the company.

  9. Seek out attractive targets in alignment with the deal rationale.

  10. Consider the limitations of valuation methodologies.

  11. Pay the right price.

  12. Do your homework with the best available information.

  13. Promote the deal rationale from first contact.

  14. Know the sellerís intents.

  15. Pursue tough but fair discussion criteria.

  16. Assess the quality of the targetís management.

  17. Verify that synergies will result in real value.

  18. Develop a clear M&A business case.

  19. Align the two businesses based on sources of value.

  20. Conduct a timely and effective due diligence

  21. Assume nothing.

  22. Evaluate and assess cultural dissimilarities.

  23. Utilize the power of information technology to accelerate the due diligence process.

  24. Know the added risks of cross-border mergers and acquisitions.

  25. Name an integration manager at the time of the announcement.

  26. Develop detailed integration plans prior to the closing.

  27. Retain the best people by treating them as the companyís most valuable assets.

  28. Maintain a strong focus on customers.

  29. Transition to an integrated management team quickly.

  30. Maintain a fast integration tempo.

  31. Communicate the integration priorities.

  32. Define a common operating philosophy and consistent practices.

  33. Realize M&A deal benefits tangibly and in a timely manner.

  34. Tie employee incentives to synergy realization and to the fulfillment of integration requirements.

  35. Develop in-house M&A skills.

(Source: Massoudi, 2006, pp. 3, 19, 41, 67, 83, 101, 119, 145, 165)

Reference

Massoudi, B. B. (2006). Do the right deal, do the deal right: 35 success factors for mergers and acquisitions. Seattle, WA: Continental Publishers.

 

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