While it is not quite the heyday of the big deal market, there are still numerous merger and acquisition opportunities that can fuel growth. Entrepreneurs can employ them as part of their strategy to scale or gain market share or strength.
Studies conducted by large global firms show that most “m&a” deals involving large public companies do not add to shareholder value, and over half actually destroy shareholder value. Many such transactions are fool’s gold offering synergies on the surface but huge risk at the same time.
Due diligence done by lawyers, accountants and business analysts often fail to uncover the organizational issues that can be the downfall of a merger or acquisition. This is because many of the challenges do not necessarily lie within their areas of expertise.
Management Mpowerment Associates works with clients considering a merger or acquisition to explore the areas of organizational culture, values and behaviors. If two cultures are different or if there is a clash of values, or even styles, trying to integrate them can spell doom for the transaction even if it appears to make business sense. We have a proprietary cultural integration process that explores key areas including decision making styles, levels of authority, values, ethics, work behaviors, work/life balance, employee development and performance evaluation, employee engagement, customer service and expectations and numerous other areas key to business success and effectiveness.