Deals, such as mergers, stock swaps or spin-offs (to name a few), have always been an important part of business. Acquisitions are a fast way to expand, and divestitures can free up cash (and time) allowing companies to focus on what matters most.

Why, then, do many deals — more than half, according to studies — fail to deliver their expected value? One simple answer is that too many companies shoot from the hip. They often rely on conventional wisdom and guess work instead of hard-nosed analysis and discipline. Deal guys get carried away, expectations get overhyped and soon the deal turns into something that has little chance of achieving its anticipated results.

The Merger & Acquisition Services (M&A Services) practice is pleased to present “M&A Lies (And Why They’re Sometimes True),” the ninth book in the Straight Talk series. This book takes a hard look at ways companies approach transactions today and teaches us that some things that sound totally outrageous can turn out to be true and others that seem like sure bets can be wrong.

Order "M&A Lies" now or download the PDF below.

Here's an excerpt:

M&A Lie No. 5: Acquisitions are the only deals that create value.

Acquisitions are the glamorous side of M&A. But divestitures can be just as important, especially in tough times. Unfortunately, too many CEOs want to sell as quickly as possible so they can focus on their core business. They want to dump underperformers quickly. After all, businesses that don’t fit the strategy anymore are simply distractions.

But divestitures are not just acquisitions in reverse. They’re actually much more difficult.

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Article: Addition by Subtraction
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News: Divestiture M&A News: May 2009
M&A Library: Divestiture