Mergers And Acquisitions
M&A has been and remains the fastest way to grow a company other things being equal. Put two companies together each with 10% of the market and you have a powerful 20% er. However it is fraught with risk and danger. Academic evaluation of M&A deals show that, however estimated, no more than 50% of M&A deals succeed over time. Why is this?
One reason is the premium that the buyer may have to pay in order to achieve the acquisition. Another is the problem of trying to turn two companies with different cultures and probably different agendas into one efficient larger enterprise. Thirdly there is a tendency for actors in the M&A market to focus almost exclusively on the financials of the deal when strategy and culture may be equally important and are neglected at their peril.
This 3 day course looks at M&A through the three lenses of finance, strategy and culture and assesses the risks.