“We did an acquisition about 15 years ago. It did not go well…I guess you could say we are still ‘recovering,’ the CEO of a family-owned business recently shared with me during a meeting. She went on to explain there were a number of integration issues and other challenges that cropped up post-closing that the […]

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Remember that just because a deal is announced, it doesn’t mean it will go through. A record number of M&A transactions announced in 2015 have been cancelled bringing the total deal value down from $4.374 trillion to $78 billion. Unfortunately cancelled deals mean a lot of time, resources and effort were wasted putting together these […]

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Pfizer and Allergan have announced that they are abandoning their $160 billion merger. This resulted from a political storm around tax inversions, a technique whereby US companies relocate abroad to avoid the high US corporate tax rates. The Treasury department took action to insert new rules that effectively killed the financial benefits of the deal. […]

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Capstone CEO David Braun’s Analysis in the Memphis Business Journal Verso Paper, after acquiring NewPage Holdings for $1.4 billion in January 2014, has filed for Chapter 11 bankruptcy. Verso, which manufactures coated paper used in products like magazines, is struggling in a declining market. With its new acquisition, the company failed to realize desired economies […]

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Research indicates that up to 70% of mergers and acquisitions fail to meet stated objectives, and of those 50% will destroy shareholder value. Those are daunting statistics. Yet acquisitions remain a top means for growth in companies in the U.S. and around the world. So a key question for any organization looking at M&A as […]

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Acquisitions fail for reasons that range from lack of compelling strategic rationale to inadequate due diligence to conflicting cultures. I think many would say acquisitions fail because too much was paid for them. While overpaying is certainly a reason for failure, I would not say it is the top reason. In my experience, I have […]

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About 77% of company acquisitions fail. Don’t let that number scare you off from an acquisition. Based on my observations as an M&A consultant, I’ve found most acquisitions fail due to widespread misunderstandings of the process. Head over to the ACG National Capital Blog to read my list of some of the most common mistakes […]

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On this blog previously, David discussed some of the issues surrounding the AOL-Time Warner merger.  Given that the ten year anniversary of the merger was recently marked, I wanted to re-visit the ill-fated deal to explore it a little more in-depth. AOL and Time Warner merged to create the “world’s first Internet-age media and communications […]

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At a seminar on the M&A process, I discuss the most common reason that acquisitions fail – and it might not be what you expect: Have you been part of a failed acquisition?  What do you think was the main reason that it didn’t work? Let me know in the comments!

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