Merger and Acquisition Strategies - Adding Value and Reducing Risk

© Rossmore Group

This paper will explore some of the key practical issues encountered in developing and implementing merger and acquisition (M&A) strategies. The critical success factors and how failure can be avoided will be examined.

In terms of achieving intended increases in shareholder value, the M&A track record is poor; a fact repeatedly highlighted by research. Key determinants of success in realising value include:

• Achieving sufficient M&A process cohesion avoiding fragmentation and multiple hand-off
• Using a structured targeting process a purely top-down focus may fail, especially in international situations, to take account of local knowledge, cultural issues and the need for ownership by local operating management