Friday, December 14, 2012

Warning Against Binge Buying. When is M&A the Right Answer to Your Growth Challenges? European Financial Review (2012)

One of the truisms of business life is that mergers and acquisitions often create more headlines than value. Some studies indicate that 70% of deals fail to achieve their objectives. In our research on 150 ICT firms (“Build, Borrow or Buy: Solving the Growth Dilemma”, Harvard Business Review Press, 2012), only 27% of the responding firms reported they were able to extract the value that they wanted to achieve from their target firms’ capabilities following their acquisitions.