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- Commentary: Making mergers work for profitable growth
Making mergers work for profitable growth
Given the enormous commitment of assets, managerial time as well as shareholder euros, it is timely to consider how managers can improve odds of merger success.
Ongoing research by HKH Management Consulting shows conclusively that the single most important variable under the control of an acquiring company is neither price nor strategic intent. It is indeed how the deal is managed after the hands have been shook!
Most acquisition leaders across SME's with battle scars agree that "it's all in the execution." There is convincing evidence that companies that execute effective post-merger management programs improve their odds by as much as 50 percent. Not surprisingly, experienced acquirers - those that have completed six or more deals over the analysis period - succeed significantly more often than do their less experienced competitors, even though they often pay higher premiums.
For most SME's, in short, the deal is won or lost after it is done.
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