Deloitte LLP   Deloitte LLP
 
The Overconfidence Dilemma: Why Companies Exaggerate Their M&A Skills
Deloitte Insights podcast

Putting a value on a target company’s assets can be tricky at best, but it’s especially so in politically unstable countries with shaky economies and unpredictable legal systems.

To use our embedded media player, please install the latest version of Macromedia Flash Player.

 download icon Download | Subscribe: email icon Email | iTunes icon iTunes | RSS icon RSS (What is RSS?) 


confident business personPeople who wear rose-tinted glasses often have an unrealistic sense of what they can achieve and tend to be more optimistic than those who don’t. Companies that make mergers and acquisitions (M&A) an integral part of their business strategy would be fooling themselves if they operated in a similar state of denial, but surprisingly, that’s what many companies do. They believe — mistakenly — that they never shoot from the hip, that their deal pipeline is well-managed or that their leaders take a hands-on role. In fact, what these companies are really doing is putting aside hard-nosed analysis in favor of back-of-the-envelope guesswork as they plot out their deal strategy.

Highlights:

  • Why do so many companies deceive themselves about their true capabilities?
  • What kinds of lies are they most susceptible to buying into?
  • Why do some organizations believe they don’t need to spend a lot of time on due diligence of public companies and instead adopt the view that they’ll fix any problems on the back end?
  • What is the value of bringing both employees and customers into the loop, and what are the potential consequences if companies neglect either one?
  • How much weight should companies give to economic conditions when they pursue their M&A strategy?

Guests: 
David Carney, national managing partner, M&A Consultative Services, Deloitte Consulting LLP
Eva Seijido, national managing partner, M&A Transaction Services, Deloitte Tax LLP
Chet Wood, chairman and chief executive officer, Deloitte Tax LLP, managing partner, U.S. M&A Services, Deloitte LLP

Related Content:
Book: M&A Lies (And Why They're Sometimes True)
Overview: Merger & Acquisition Services
Resources: M&A Library
Transcript: The Overconfidence Dilemma: Why Companies Exaggerate Their M&A Skills 

Listen to our complimentary podcasts anytime, anywhere.

Contact us for more information
 
Last Updated: September 30, 2008
Source: Deloitte LLP - United States (English)

Print this page    Email to a colleague
     

Copyright © 2009 Deloitte Development LLC. All rights reserved. About Deloitte US.

Deloitte RSS FeedsDeloitte RSS Feeds | What’s RSS?Bookmark