First Step for M&A Success
In the world of M&A, it’s not hard to find evidence of a “bad deal” after the fact. News stories and Internet posts trumpet every corporate mistake that led to a poor M&A decision. In fact, M&A disasters like the ill-fated Time-Warner/AOL fiasco live on years after their conclusion as cautionary tales for corporate managers.
Deals can go wrong for a huge number of reasons, but at the heart of the matter is always a false assumption that ultimately played itself out to a bad end.
Whenever this happens, media watchers and others are quick to pounce, and investors and shareholders are quick to voice–or vote–their disapproval on decisions that failed to provide the promised value. In some cases, a company will even face a public backlash that affects prospects and earnings long after the ill-fated deal has been relegated to the dustbin.
So, how do companies stack the odds in their favour for an M&A transaction?