M&As are as much a science as they are an art; you approach it systematically and realize the art of possible.
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Manish Jain Principal Research Director |
If you’re new to the acquisition game, don’t jump in without adequate preparation and an in-depth understanding of what you expect from any M&A transactions. With a growing number of consolidation exercises across all industries, mergers, acquisitions, and divestitures are becoming part of the growth strategies of many organizations. We have seen drastic destruction of shareholder value (Citicorp-Travelers, Atos-Syntel, Sears-Kmart, etc.) when the wrong target is selected and acquired. In this note, we talk about three key steps an organization must take to increase the success rate of its future M&A transactions. This note helps IT executives to understand the nuances of M&A transactions and ask the right questions of non-tech executives. However, it is more relevant to organizational leaders who are responsible for finding the right targets for a merger or acquisition and then executing the M&A successfully. Leverage this note to develop a target evaluation framework to increase the success rate of future M&A transactions. |
