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Seven characteristics of successful M & A

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Performance is poor business results, and buy them? Concerned that the next merger or acquisition has the same effect? You are not alone! Subsequent studies have shown that mergers and acquisitions are very risky. Despite the fact that a large number of mergers and acquisitions, tax advice, the Commission clearly test each year, almost all large companies mergers and acquisitions shows that most of these activities are not in a position to achieve the promised financial results. As with all investments, is the biggest risk, the best results – good or bad. One way to increase the opportunities for research methods, the most successful mergers and acquisitions.

As in his area, and mergers and acquisitions, which I have often found in my career. I also interviewed recently by several C-level executives at some of the largest and most successful companies in the world in different areas in this case. In addition, the research on the Internet executives who have extensive experience in mergers and acquisitions. Seven properties have emerged among the winners of the few companies, M & A Success:

Activity 1: Companies in a safe take-overs and Mergers usually successful. First, the relevant strategic planning. This practice acquisitions must be defined, is an excellent strategic form of society, not only for older children. Second, make Peru a thorough job of due diligence. Due diligence is was safe as the poor performance by up to a depth of business processes and information systems expertise and monitoring capacity to ensure proper assessment and strategic differently. Third, the negotiations for the acquisition, to avoid too much. This is achieved by ensuring that the administration does not reach fallen in love with the target company. Fourthly, the post-merger integration and post-acquisition. The plan includes a global communication, the harmonization of objectives and measures and the integration of processes and systems. Fifth and finally, if the case is closed, the most successful non-stop for the companies that assimilation and integration of business activities. M & A requires careful planning, strict management and implementation of aggressive success.

Option 2: Successful companies use the initiatives and projects and the integration of basic project management techniques to manage each initiative. Every company, including you, has a unique combination of strengths and weaknesses, and market strategy. The combination of these factors to determine what specific measures should be adopted, the company attracts new business. In some cases, the need to improve the rotating personnel, equipment and capital goods. In other cases, the information in a consistent manner so that the sales and re-branding is more important. Whatever the combination, the company must take account of these initiatives in the formal structure of an effective treatment programs. The formal structure and managed care initiatives is one of the most important aspects of successful mergers and acquisitions. Program management requires the formal elements of a detailed project plan to improve the performance of the different phases defined responsibilities are divided, to measure risk and change management processes and so on. Initiatives to integrate sound-roots marketing strategy to increase the chances for successful implementation of mergers and acquisitions is based.

Activity 3: Successful companies pay special attention to the similarities of cultures, organizations and personnel resources, such as managing storage systems. If a company has gone through the acquisition or combination, you already know the different cultures of the Company, provided that the situation is difficult. In a hostile takeover, could be disastrous. Employees are often the behavior that had been prescribed for his business is, can sometimes be reduced or exemption. Additional performance criteria, such as measuring the performance of individuals. If this happens, management, and many workers acquired company will be a threat on the defensive, and resentful. The loss of key management during critical times of transition does not spoil the event, although the process is unchanged, due to the instability of the organization often takes so much energy and time to obtain other new nurses time and more companies on the expected financial results. Some advisors M & A report states that up to 72 percent of the leaders of three key-rings within one year after the takeover or merger. Almost all successful mergers and Acuisition include the formal structure of the management culture in their integration policies. Some even have special measures to monitor the success of the performance of the fusion of the cultures after the publication of a merger or acquisition. HR information on compensation, benefits, or a partial failure of successful mergers and acquisitions.

Feature 4: Successful companies that the acquisition is part of the overall strategy of the company. Some of the takeover of his company was the time for the rest of society? Response to recent studies, said the guide, which was attended by a number of machines that the purpose of the acquisitions are a good strategic move, the third most important success factors of M & A. This was indicated by a strong strategic framework for the market, The proprietary technology research, development and management, financial (revenue share) to support, among the companies. This means that there are a number of real and tangible synergies between the companies. Mergers & Acquisitions and the best artists to continuously develop a strategic plan for market strategy, internal strategy, objectives and indicators for the care of top and bottom of the entire company. This includes compensation plan to integrate their activities, and resolve them immediately, after the transaction. Effective planning is an important component of corporate success. In the case of mergers and acquisitions, but also form the basis for all decisions.

Activity 5: The success of the company increased full-time resources of time and accountability in the implementation of the success of the purchase. Her company specializes in full-time operation required materials, or to part-time work for people who have day jobs? The pressure of daily work responsibilities of key staff is very difficult for them to concentrate on a part-time employment in connection with mergers and acquisitions. The initial allocation of full-time experience with such measures as soon as possible at the time of acquisition due diligence and a merger is often crucial for success. General Electric, which acknowledged as one of the best customers in the business (certainly one of the most productive) one, that leadership is a big difference to experience in their efforts to make, and has therefore decided to appoint to the integration of full-time role in the company is managed. GE and other studies show that companies, full-time best teams in the official control of mergers and acquisitions are connected.

Activity # 6: Successful companies integrate separate business objectives and financial goals, which are relatively short-term quantitative. The latest acquisition is the company for certain purposes and published widely known? Although the goals, such as the “growing by one year,” enough to quantitatively divided into a number of initiatives and related matters are useful productivity. The best companies understand how to quantify not only the higher goals, but also concrete measures be taken by whom and when, in order to achieve the desired result. Therefore, the detailed construction plans in certain areas of the initiative is described in relation to No. 2 above. This may be sales growth, market share growth and lower operating costs. This can include a wide range of activities, such as to update the creation of strategic alliances, marketing and distribution through the cross-selling or re-branding, the rationalization of structures, the new research and development, restructuring of organizations and information systems. Companies, the most effective in March of separate initiatives to quantifiable targets. Achieving these goals will enable companies to connect a separate, specific financial goals over time. The most successful mergers and acquisitions are the most reasonable to define what success means.

Activity # 7: Successful companies are moving deliberately to newly acquired business units, business processes and shared information from the beginning. C-level executives I (he was the Head of Financial Services) said, the preparation of my book, said: “We have three priorities:. The strengthening of the market share of assets and reduce operating costs in relation to the assets in the thigh Download acquired the processes and systems, is the common strategic importance that we are with the third goal. But in addition to financial to our results, their impact on the morale of our employees, our ability to present “a coherent picture of customers and the effectiveness of the training staff. When a company like we have a systematic approach to new acquisitions, joint processes and systems Bring 6-9 months. “The features most of the leading companies in this sector, including companies like General Electric and Cisco. A single, production and shows the power of customers and shareholders. The strength of unity and cohesion is more important than the course as fast as a merger or acquisition .

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