Description

The pursuit of growth through takeover or merger has made a small, select group very wealthy while diminishing the wealth of a vast number of shareholders. CFOs and controllers have a moral dilemma here and only they can decide what is appropriate. In many cases, the forces are huge to transact the takeover. This article explores why so many takeover and mergers, which have been based on perceived synergies and cost savings, fail, and if involved in one, why you need to move on before reality strikes.

The article contains 15 pages designed to help readers to understand the dangers with a takeover or merger. It also comes with some electronic checklists to assist to assist your evaluation.

Look Inside:

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This article gives you the answers to the following questions:

• What is the difference between a merger and a takeover?
• What can go wrong with a takeover or merger?
• Where mergers can go wrong?

Contents

• Overview
• Reasons for A Takeover Or Merger
• Some Big Failures
• AOL and Time Warner
• Vodafone/Mannesmann
• Glaxo Wellcome/SmithKline Beecham
• The Driving Forces Behind TOMs
• How Takeovers or Mergers Go Wrong
• Synergy Calculations Are Totally Flawed
• Case Study: The Morrisons Toms Go Rotten
• Loss of Focus on Customers
• Culture Clash
• There Is No Heart in a Merged Organization
• Loss of Years of Intangibles
• The Wrong Management Rises to the Top
• Salary Costs Escalate
• Human Beings Find It Hard to Conceptualize the Intangibles
• Mergers Are Seldom Done from a Position of Strength
• There Is Never Enough Time to Fully Evaluate the Target
• Avoiding a Lemon
• Takeover or Merger Scorecard
• Alternatives to A Rotten Tom

This article will help you answer queries and guide you to a best practice solution in this area. These articles are sent as a PDF copy, normally within 48 hours of payment.