The Safer Way to Grow?
There comes a time when organic growth from within your company can only take you so far. You begin to consider potential mergers and acquisitions, yet you know that making a ‘deal’ work is one of the hardest tasks in business. Whether you are going for a full merger or forming an alliance to access new markets or expertise... the odds are against you with only 9% of European mergers rated as completely successful according to a March 2007 study by The Hay Group.
Yet if most mergers and acquisitions are not completely successful, why are more and more taking place? The figures for 2006 show that 11,088 deal announcements were made and US $1.23 trillion was spent on Mergers and Acquisitions in the US alone. (Source: Mergerstat.com)
It’s highly risky and yet more and more companies are planning their expansion this way. How can you reduce the risks and increase the chances of carrying out a successful acquisition or merger?
