M&A Lies (And why they're sometimes true)
Straight Talk Series – Book No. 9
Straight Talk Book No. 9: M&A Lies (And why they’re sometimes true)
To view our interactive content, please install Adobe Flash Player.
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.