America Online and Time Warner
Daimler-Benz and Chrysler
Google and Motorola
Microsoft and Nokia
Alcatel and Lucent
HP and Compaq
… Are all examples of failed mergers and acquisitions.
In fact, according to the latest research,
56% of global M&As fail.
A similar failure rate would result in 22 million plane crashes every year.
M&A FAILURE
Most M&As not only destroy shareholders' value.
They also bring massive costs to communities.
With new generations of business leaders,
academics, and consumers
asking companies to rethink their role in society,
the failure rate of mergers and acquisitions poses a significant problem.
PERSPECTIVES ON M&As
Mergers and Acquisitions
involve different actors,
with different perspectives,
and one crucial question
"How can I ensure that mergers and acquisitions create value in a context where the failure rate is well above 50%?”
The influence of cultural differences on Cross-Border M&A negotiations is often overstated.
Culture is only one of the many variables that can explain negotiation outcomes, particularly when organizations and negotiators experience a learning process from previous international negotiations.
Culture
WHY M&As FAIL
Why 56% of M&As fail?
Research points to three key factors:
1. Incorrect evaluation of synergies
2. Inadequate planning of post-merger integration
3. Ineffective management of the negotiation process
This final factor is the center of our research.
A successful M&A negotiation enables post-merger integration and ensures the attainment of the anticipated synergies.
THE CHALLENGE
Despite being the most critical M&A stage, negotiation is also the most overlooked.
The involvement of multiple actors exponentially accelerates the complexity of the negotiation process.
As a result, more than 610,000 academic articles explore the different merger and acquisition stages, but only six cover the negotiation phase.
The M&A negotiation process is treated as a black box.
The solution
Now imagine.
What if you were equipped with a research-based methodology to shape the M&A negotiation process toward the desired outcome?
And, more crucially,
what if the same research-based methodology
could set the stage for a
successful and durable merger or acquisition
that creates value for all stakeholders?
Resources
About me
Yadvinder S. Rana
Pracademic in M&A Negotiations
I have an extensive international corporate experience within multinational contexts in seven countries across three continents (USA, China, India, UAE, UK, France, and Italy).
My teaching, research, and advisory work are focused on M&A negotiations involving corporations, start-ups, and scale-ups.