As a leader, mergers and acquisitions pose an exciting opportunity for growth, profitability, expansion of market share and many more. However, a KPMG study reports that 83% of mergers and acquisitions fail. Those who are skeptical of mergers and acquisitions have argued for them to be viewed as a tactic, not a strategy. The below resources explore implementation of change management and how leaders should analyze mergers and acquisitions.
Before exploring the idea of selling or merging your business, have you laid out the important questions? One to consider: can the executive’s responsibilities be substantially modified, increased or decreased? This Forbes article dives deep into all questions surrounding mergers and acquisitions; bring the glaring points up to your TEC group to ensure you proceed with the appropriate steps.
Entrepreneur John Bly questions why more organizations say they are committed to growth yet aren’t eyeing mergers and acquisitions as a viable means to obtain growth. When companies break through the glass ceiling and are committed to expansion, their people can work on their passions.
When leaders were asked if they ‘role model desired business changes,’ a full 86% reported they do. When the same question was posed to their subordinates, only 53% reported a positive response. In change management, understanding the self-serving bias can help leaders check their ego and implement real change.
43% of mergers and acquisitions are delayed, terminated or see purchase prices impacted negatively because of cultural issues. As a leader of the organization, you are the driver to set them up for success in their new environment.
In 1994, Quaker Oates purchased Snapple despite warnings from Wall Street that they were paying $1B too much. In just two years, Snapple was sold to a holding company for $300M – incurring a $1.6M loss each day since the acquisition. Many organizations fail when it comes to mergers and acquisitions, read where leaders went wrong and how to avoid a similar fate.