Tactical, Operational & Strategic Analysis of Markets, Competitors & Industries
Mergers & Acquisitions presents CORPORATE RISKS which has to be mitigated.
Success of merger / acquisition depends how we have actually prepared at:
1. Pre Merger stage
2. Post Merger stage
Pre Merger stage:
Here compatibility issues need to be addressed under :
B. Evaluation and Negotiation phase
While we are looking at compatibility issues at during Courtship phase, have we looked at compatibility between the vision and objectives, have we been able to build and reinforce personal and business relationships.
Once we find a common ground ie we have compatibility ie we share vision and objectives that we may like to proceed to Evaluation phase and Negotiation stage where we need to undertake due diligence and evaluate the cost/benefit of the merger/acquisition besides understanding the regulatory clearancesrequired for the new project.
Once the Merger/ acquisition has taken place , we may like to look at Issues which need to be addressed under:
A. Immediate Transition phase
B. Transition phase
Immediately after the merger / acquisition, Issues such as New appointments need to be made, list of Redundancy announcements need to be made, Restructuring of the various departments need to be done to make the organisation an agile corporation and Divestment needs to be considered based on BCG matrix.
In Transition phase, we need to Fine Tune the organisation further to enable the organisation to remain lean and agile.
Further re-structuring and job transfer need to be done to get the right fit.
We cannot ignore Cross-Cultural differences which are the Nemesis of many a mergers.
cited by: www.corporaterisks.info
Advisor, Corporate Risks