Tuesday, March 27, 2007

Incredible statistics on the LACK of success of European mergers

This is an incredible picture of the "state" of Mergers & Acquisitions. The E.U. isn't so far away from the United States that we can think that we're immune to these numbers. They're stating a 93% failure rate due to the fact that companies are prioritizing financial and legal due diligence over the "intangible assets" that are critical to a merger. This stresses the importance of going through a PRE-MERGER CULTURAL DUE DILIGENCE!

"And in the rush to close the deal, they often give short shrift to executive assessment and selection, the new organization structure and designing the key jobs needed to be done to implement the strategy." How many times have you heard this as the REAL reason a merger fails?

Feel free to leave your comments and thoughts...

New Report Points to Damning Statistics

Posted on Tuesday, March 27 by Richard Edwards in

Barclays pursuit of ABN Amro received top billing in business pages across Europe last week, but a study published today might make the banking giant think twice before concluding the deal.

According to research by global consultancy firm, Hay Group, a staggering 90% of European Corporate mergers fall short of their objectives, with just 9% achieving anything approaching success...