At the moment, many companies’ outlook is limited to survival, so growth – let alone inorganic growth – is far from their minds. However while many organisations are struggling, enterprises with strong balance sheets may find the current environment highly conducive to creating value from acquisitions. In a climate of reduced competition for acquisitions, lower prices can enable acquisitive companies to make bolder “strategic plays”, gaining market positions they previously would have not had the resources to fund. While these opportunities constitute the “silver lining” of the current economic climate, executing effective mergers and acquisitions is nevertheless fraught with challenges.
Business leaders need to be alert to the pitfalls of M&A and learn from past mistakes, so as to avoid:
- Doing the wrong deal
- Bargain basement buying
- Less than diligent due diligence
- Post merger (dis) integration
- Culture clash
- No-talent talent management.
Remember that 'buying is easy, owning is hard'!
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Positive Leadership Limited delivers leadership advice in the areas of business strategy, M&A, capital raising, talent development and performing under pressure.
Effective Mergers and Acquisitions
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