Published on February 23, 2014
5 Truths acquirers disregard When they consider Mergers and Acquisitions Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: email@example.com 1
1. We don’t really know much about M&A. It’s true - most of the data we have relates to publicly held, large corporations while most firms around the world are privately held SMEs. This is very much like trying to figure out how a state highway looks like at night with only a flashlight… Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: firstname.lastname@example.org 2
2. M&A ≠ Strategy Despite what executives often claim, M&A is only a vehicle, a means by which firms may achieve their goals (for example, growth through related acquisitions) Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: email@example.com 3
3. Chances? Research shows chances of profiting from M&A are similar to those of a coin toss - 50%... Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: firstname.lastname@example.org 4
4. Turnover of senior managers increases significantly following acquisitions. Research shows that management turnover rates more than double following an acquisition. This means that much know-how and organizational resources are lost. Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: email@example.com 5
5. So much can go wrong… There might not be a fit between the firms, the process may be incorrect, biases influence and the pricing may be inaccurate… not to talk about the integration. There’s much to fear. Cell: +972-54-4536568 | Fax: +972-9-7417607 | Email: firstname.lastname@example.org 6
Find more presentations and information on my website: www.friedman.org.il Copyright 2014 @ Yair Friedman. All Rights Reserved 7
While excitement in mergers and acquisitions is ... consider what the market will look like in 5 or ... angrier once they eventually find out the truth.
• The true acquisition cost is not the acquisition price • Culture due diligence ... Acquirers should disregard ... still pursue acquisitions? Because ...
MERGERS AND ACQUISITIONS. ... invested in the acquisition had exceeded the acquirers ... than a merger. How to go about it: Let us consider the ...
Latest research trend on Mergers and acquisitions? ... others are in the wave of mergers and acquisition. ... companies consider BEFORE they ...
... bad news when they finance their acquisitions using ... they consider only the ... 5.2 Returns momentum Stock swap acquirers enjoy a ...
When do banks listen to their analysts? Evidence from mergers ... underwriting mergers and acquisitions,1 about half ... when they disregard . 5
mergers and acquisitions (M&A), ... consider several factors that may impact M&A readiness, ... rules under the Truth in Lending Act to address important